New Delhi [India], July 9 (ANI): The growing awareness of the cost-effectiveness of pre-loved cars is driving more buyers to opt for second-hand vehicles. Consumers in cities such as Agra, Coimbatore, Nagpur, and Vadodara have witnessed significant growth in sales of second-hand cars during the second quarter of 2024 with a surge of 150 per cent, 120 per cent, 111 per cent, and 138 per cent, respectively.
The report added that in the second quarter, approximately 48.5 per cent of all car buyers were salaried professionals celebrating their career milestones by purchasing personal cars.
Cars24, an Autotech company, Quarterly Report for Q2 2024 says that the demand for used cars in metro cities is rising due to enhanced disposable incomes, attractive financing options, and a desire for enhanced personal mobility.
The popularity of used cars is consistently increasing beyond metro cities as well, cities such as Agra, Coimbatore, and Nagpur are leading the charge.
The report observed that other major cities in the country have witnessed over a 100 per cent increase in sales in the second quarter.
Citing the reason behind stronger second-hand car sales, the report added that these cars offer significant savings, providing similar functionality and reliability at a fraction of the price of new cars. This makes them an attractive option for budget-conscious consumers.
Maruti Suzuki’s Swift and Hyundai’s Creta have maintained their dominance in the used car market, as per the report.
The Tata vehicles market share has grown from 4 per cent to 7 per cent. Kia, Nissan, and MG are also seeing increased market presence.
In the used car market, Maruti Suzuki leads with a 34.5 per cent share, followed by Hyundai at 26.9 per cent, and Honda at 10.6 per cent. SUV models are seeing the highest jump in popularity, with the MG Hector experiencing a 4x increase, Nissan Magnite a 2x increase, and the Jeep Compass a 2x increase in 2024 compared to 2023.
The SUV-centric trend has expanded beyond new cars and is now evident in the used car market as well, which has seen a 4-6 per cent growth since FY21. This year, popular models like the Brezza, Sonet, Ecosport, XUV300, Taigun, and Tiago are prominent on Indian roads. In the past five years, the share of SUVs has risen from 10 per cent to nearly 20 per cent, showcasing a notable shift in consumer preferences.
Highlighting the role of easy financing, the report noted that in Q2,2024, a total of Rs 328 crores of auto loans were disbursed, thanks to an innovative financing model that skips traditional down payments. This approach is particularly popular with first-time buyers, signalling a major shift towards easier car purchasing options. Millennials are driving this trend, eager to enhance their mobility and enjoy personal transport.
This financing wave is not confined to urban centres; about 30 per cent of loan applicants in Q2 2024 came from Tier 2 and Tier 3 cities, indicating that car financing is reaching the smaller cities, the report added.
Women too have taken a prominent lead in car financing this quarter, as per the report. They have secured 10 per cent higher loan amounts than men, reflecting their growing economic empowerment and confidence in financial management. (ANI)
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