Now Reading: Surge in Used Automotive Market Costs and SUV Demand | Indian Information | India Enterprise Information
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Surge in Used Automotive Market Costs and SUV Demand | Indian Information | India Enterprise Information
Surge in Used Automotive Market Costs and SUV Demand | Indian Information | India Enterprise Information
CHENNAI: When Dilip Singh was trying to promote his seven-year-old SUV whose odometer had clocked almost 1 lakh km, he was stunned to seek out that he managed almost 70% of the price of the car.
With new automotive costs hovering over the previous few years, the worth of used automobiles has additionally gone up. Within the final two years, the common ticket costs within the used automotive market has gone as much as 6-6.5 lakh from Rs 3-3.5 lakh, stated Vinay Sanghi, CEO, CarTrade group “Since new automotive ticket measurement has additionally gone up by round 30%, it is spilling over to the used automotive market too as in all sorts of automobiles, folks go for shopping for the top-end variant,” he stated.
Used automotive entrepreneurs say the demand pull means a barely older SUV is on the market for the worth of a hatch. “Presently, used SUV costs can begin from as little as Rs 3.5 lakh whereas hatchbacks costs can begin from Rs 2 lakh solely,” stated Gajendra Jangid, co-founder and CMO, CARS24 Companies.
Compact SUVs have change into high attracts, and within the luxurious area particular fashions just like the Mercedes-Benz C-Class, Audi Q3, and BMW X1 Collection are notably standard, stated Niraj Singh, founder and CEO of Spinny. The platform’s high fashions vary from just below Rs 2 lakh to Rs 7.5 lakh. Whereas the Grand i10 begins from 1.5 lakh, a Baleno is priced between 4.7 lakh and Rs 7.1 lakh, whereas a used Kwid is on the market from round Rs 2.49 lakh to Rs 4.9 lakh.
“The brand new automotive product combine has been altering in favour of SUVs that are pricier and these have began to return to the used automotive market as effectively. Additionally, many new entry-level automotive consumers are preferring to purchase higher geared up, greater B-seg used automobiles on the identical value. This has additionally led to the decline of the entry stage section which has not seen any new choices,” stated Ravi Bhatia, president, JATO Dynamics The used passenger car market is at present estimated at 5.5 million models, rising 10-12% yearly, in comparison with the brand new PV market of simply over 4 million models.
What can be serving to is straightforward availability of finance. CarTrade, which acquired OLX final yr, for example presents a financing market for used merchandise each auto and non-auto. Sometimes, second hand automotive finance comes at a better price of 11.4-15% in comparison with 8.2-10.5% for brand spanking new ones.
That pattern can be true for used two wheelers which is witnessing the sort of premiumization that the passenger car market goes via.
“There’s rising demand for larger finish two wheelers together with Royal Enfields and Pulsars with a 30-40% rise in ticket sizes within the final 2-3 years,” stated Sanghi of Automotive Commerce. A part of the explanation for costs firming up is the demand bounce again, he added.
With new automotive costs hovering over the previous few years, the worth of used automobiles has additionally gone up. Within the final two years, the common ticket costs within the used automotive market has gone as much as 6-6.5 lakh from Rs 3-3.5 lakh, stated Vinay Sanghi, CEO, CarTrade group “Since new automotive ticket measurement has additionally gone up by round 30%, it is spilling over to the used automotive market too as in all sorts of automobiles, folks go for shopping for the top-end variant,” he stated.
Used automotive entrepreneurs say the demand pull means a barely older SUV is on the market for the worth of a hatch. “Presently, used SUV costs can begin from as little as Rs 3.5 lakh whereas hatchbacks costs can begin from Rs 2 lakh solely,” stated Gajendra Jangid, co-founder and CMO, CARS24 Companies.
Compact SUVs have change into high attracts, and within the luxurious area particular fashions just like the Mercedes-Benz C-Class, Audi Q3, and BMW X1 Collection are notably standard, stated Niraj Singh, founder and CEO of Spinny. The platform’s high fashions vary from just below Rs 2 lakh to Rs 7.5 lakh. Whereas the Grand i10 begins from 1.5 lakh, a Baleno is priced between 4.7 lakh and Rs 7.1 lakh, whereas a used Kwid is on the market from round Rs 2.49 lakh to Rs 4.9 lakh.
“The brand new automotive product combine has been altering in favour of SUVs that are pricier and these have began to return to the used automotive market as effectively. Additionally, many new entry-level automotive consumers are preferring to purchase higher geared up, greater B-seg used automobiles on the identical value. This has additionally led to the decline of the entry stage section which has not seen any new choices,” stated Ravi Bhatia, president, JATO Dynamics The used passenger car market is at present estimated at 5.5 million models, rising 10-12% yearly, in comparison with the brand new PV market of simply over 4 million models.
What can be serving to is straightforward availability of finance. CarTrade, which acquired OLX final yr, for example presents a financing market for used merchandise each auto and non-auto. Sometimes, second hand automotive finance comes at a better price of 11.4-15% in comparison with 8.2-10.5% for brand spanking new ones.
That pattern can be true for used two wheelers which is witnessing the sort of premiumization that the passenger car market goes via.
“There’s rising demand for larger finish two wheelers together with Royal Enfields and Pulsars with a 30-40% rise in ticket sizes within the final 2-3 years,” stated Sanghi of Automotive Commerce. A part of the explanation for costs firming up is the demand bounce again, he added.
