Automobiles are an integral part of our lives and life without cars is unimaginable. Purchasing automobiles, especially cars in India is a major buying decision. It serves as an indicator of an individual’s progress in life and progress in the car market of the country serves as an indicator of the nation’s economy and industrial growth.
Indian car market is one of the largest in the world. Used car market in the country has seen unprecedented growth over the last few years further aided by online car buying classifieds. Rising new car prices and the economic slowdown has pushed a majority of the new car buyers to look at pre-owned cars as a viable option for purchase. This has enabled online used car businesses to provide multiple options to buyers owing to their flexibility, speed and ease of use.
The used car market will continue to grow over the next few years as used cars are much cheaper to purchase than a new one. The depreciation is lower and this attracts many buyers. Slow down in the economy hasn’t vastly affected the middle income buyer, who happens to drive the progress of the new and old car market in the country. Car purchases online has greatly helped the used car business and Gaadi.com has been pushing the envelope in used car business for over half a decade now.
Rising income levels amongst middle income earners in the past few years, and easy used car financing available these days have prompted the growth in the used car market of our the country. At Gaadi.com, our exclusive study showcases the online used car buying behaviour by our users. It also showcases the huge potential in used car business in foreseeable future not only by dealers but also online classifieds.
Our study reveals that, given the vast majority of car manufacturers in the market the used car business thrives on pre-owned cars from top players such as Maruti, Hyundai and Tata Motors. It also showcases how hatchbacks are the most popular amongst car buyers, as the type of car they want to buy.
Rising fuel prices have undeterred the buyer from choosing petrol cars over diesel cars and we find 54% of buyers choosing petrol over diesel cars. Only 4% of the used car market is geared at buying a CNG, LPG, Hybrid or an Electric car. Diesel car buyers make around 42% of the used car market. Despite diesel cars giving better fuel economy and diesel fuel itself being cheaper than petrol it has yet to overcome sales of petrol cars in the used car market.
Maruti cars are still the most popular amongst used car buyers. Hatchback cars such as Maruti Swift and Maruti Alto rake in high sales followed by Tata Indica, Hyundai Santro and Honda City. Rising income levels has allowed buyers to spend up to 2 lacs on their purchase of an old car. Our study shows that up to 41% of the buyers in the market are looking at a maximum budget of 2 lac which also indicates higher sales volume of cars from A and B segment.
Manual transmission still takes precedent over automatic transmission gearbox. Higher initial purchase cost and maintenance costs hasn’t allowed buyer in the lower segments of the car market to indulge in cars with auto-transmission, therefore manual transmission cars continues to rule the market.
Metropolitan populations have helped the used car business tremendously as most car buyers buy from cities such as Delhi, Mumbai, Bangalore, Hyderabad, Chennai, Pune and Kolkata as they have wider range of options, not only in terms of cars but mostly in terms of pricing.
An emerging economy such as ours, offers huge potential for the used car market. Dealers can utilize the current economic situation to provide value services and excellent pre-owned cars to improve their individual sales. The car market itself will continue to flourish as more buyers will flock the used car market looking for great deals as it makes an excellent buying decision for many.
Gaadi.com is an excellent platform for buying and selling your pre-owned cars. The portal also provides the mobile version of the website for ease of access while on the go.