The festive season in India traditionally marks an upswing in consumer spending, and the automotive industry, especially the used car segment, is no exception. This report delves into the latest trends and patterns observed in the Indian used car market during the recent festive period.
Used Car Sales
- The Indian automotive industry is witnessing a strong rebound in sales.
- The used car segment is also booming, with an 88% increase in sales during the festive season.
- Petrol vehicles remain popular, accounting for 87% of used car sales.
- Hatchbacks and SUVs are the most popular body styles.
- Cars24 recorded a strong performance during the festive season.
- Loans were disbursed at a record pace, with a used car loan getting disbursed every 10 minutes.
Indian Automotive Market
Key focus areas include overall sales figures, customer preferences in terms of fuel type and car models, regional sales variations, online market platform data, and loan disbursement trends. This analysis is crucial for understanding consumer behaviour, guiding future marketing strategies, and predicting future trends in the automotive sector.
Here’s a summary of the key points and some analysis:
- Overall Sales Surge: The festive season saw a significant increase in automotive sales, surpassing 1 million units. The used car segment, in particular, experienced an 88% year-over-year increase. This surge can be attributed to various factors including economic recovery, increased consumer confidence, and perhaps a preference for personal vehicles over public transport in the post-pandemic era.
- Preference for Petrol Vehicles: 87% of buyers opted for petrol cars, likely due to their lower initial costs, maintenance expenses, and longer permissible road life (15 years). The regulatory environment (15-year life for petrol vehicles) also seems to influence this preference.
- Popular Segments and Models: Hatchbacks dominated with 65% of total sales, appealing especially to first-time buyers. Popular models included the Maruti Suzuki Swift, Baleno, Hyundai Grand i10, Alto, and Renault Kwid. SUVs, with models like the Vitara Brezza and Ford EcoSport, were also in demand.
- Regional Sales Trends:
- Bangalore led in overall sales.
- Kochi saw sales doubling during Onam.
- Mumbai and Pune experienced a sales boost during Ganesh Chaturthi, favouring models like the WagonR and Honda City.
- Ahmedabad and Delhi observed a 67% increase during Navratri, with the Grand i10 and Baleno being popular.
- Sales on Cars24: The platform recorded sales of Rs 1,760 crore, with Delhi being the top metro market. Notably, the cheapest cars sold were the Maruti 800 and Zen, while the most expensive was the Ford Endeavour. Silver was the most preferred colour.
- Resale and Loan Trends: Lucknow led in terms of people selling cars, followed by Pune and Ahmedabad. The festive period saw an average of Rs 4.7 crore in loans disbursed daily, mainly to young professionals under 35. Maruti and Hyundai were the most financed brands, with the Hyundai Grand i10 being the top model for loans. This trend is significant for financial institutions and dealerships as it suggests a market with a high demand for credit products tailored to this demographic.
Petrol Vehicles and Hatchback Popularity
This data indicates a robust demand in the used car market, with particular preferences for certain car types, brands, and regional variances in buying patterns. The significant loan disbursements also highlight the role of financing in facilitating these purchases, especially among younger buyers.
The trend towards petrol vehicles could be influenced by various factors, including economic considerations and regulatory environments (like the 15-year rule for petrol vehicles). The popularity of hatchbacks and certain SUV models aligns with the general demand for economical and versatile vehicles in urban and semi-urban areas.
The data from this festive season underscores a significant growth trajectory in India’s used car market, reflecting a blend of economic, social, and technological factors influencing consumer choices. The overwhelming preference for petrol vehicles, the dominance of hatchbacks, and the surge in online car purchases are indicative of evolving market dynamics. Regional sales patterns highlight the cultural diversity impacting consumer behaviour.
The reliance on financing, especially among younger demographics, points to a changing economic landscape where access to credit plays a crucial role. These insights not only paint a picture of the current market status but also provide valuable foresight for manufacturers, dealerships, and financial institutions in strategizing their future course of action in the vibrant and ever-evolving Indian automotive landscape.