CARS24, the autoTech company for pre-owned vehicles in India, released its ‘DriveTime Quarterly Report’. According to the company, the April-June quarter witnessed a surge in demand for pre-owned vehicles across the country. CARS24, in particular, achieved a substantial sales increase during this period, with an 87 percent leap compared to the same period in 2022.
The growing preference for affordability and value among customers, alongside the availability of flexible financing options and extended warranties, has established used cars as a practical alternative. Moreover, the convenience of online marketplaces and digital platforms for buying and selling pre-owned vehicles has improved the overall experience. With the ease of purchasing a car online, complete with financing and delivery options, the process has become more convenient than ever before.
Gajendra Jangid, co-founder of CARS24 shared highlights from the report. He said, “It is truly exciting to witness such a remarkable surge in transactions within the used car market. In fact, during this quarter alone, people sold 30 cars every 60 minutes on our platform. This remarkable upward trend is far from being a mere coincidence; rather, it is an integral part of a larger market movement that is reshaping the automotive landscape.”
“Several key factors have contributed to this rapid growth, including evolving consumer preferences, the implementation of favorable government initiatives, the increasing necessity for personal mobility, the availability of expanded inventory levels, the desire to upgrade to new-generation vehicles, the inclusion of comprehensive warranty options, and the focus on customer-centric digitalization. It is the culmination of these combined factors that has propelled the second-hand car market to new heights throughout India. As more customers recognize the immense value and advantages of embracing the pre-owned car market, we are truly honored to lead the way in this transformative revolution,” he explained.
Other highlights include:
– In the second quarter car enthusiasts across India booked around 2 lakh test drives on CARS24. In the pursuit of finding their perfect match, 80 percent of buyers flocked to CARS24 yards, allowing them to test drive cars from different manufacturers without having to hop from showroom to showroom. The remaining 20 percent chose to test drive their shortlisted cars from the comfort of their homes. This surge in test drives signifies a growing interest in car ownership and the eagerness to explore a wide range of options.
– CARS24 facilitated sales of cars surpassing an value of over INR 1800 crores. The current trend of replacing cars within a few years has significantly contributed to this exponential growth. This could be due to various factors such as changing preferences, the desire to own newer models with advanced features, or the availability of attractive financing options.
– In the second quarter of 2023, Maruti Suzuki continued to assert its dominance in the used car market, reaffirming its position as the leading brand on the CARS24 platform. Maruti hatchbacks, including the Swift, WagonR, and Baleno, emerged as the most popular choices among buyers. Maruti accounted for 38 percent of total cars sold in Q2, with a noteworthy concentration of buyers coming from non-metro cities on the platform.
– Following Maruti’s lead, Hyundai, Honda, and Renault performed well in Q2 for the platform. In the realm of emerging brands, Toyota experienced a surge in market share in Q2 2023.
– In the ever-shifting automotive landscape, hatchbacks continue to assert their unyielding dominance on the roads. Hatchbacks captured 62 percent of total sales in the second quarter of the year.
– In the second quarter, sedans experienced a uptick in sales, accounting for 19 percent of total sales on the platform. This resurgence can be attributed to the timeless allure of sedans. Sedans have been captivating discerning drivers who seek a balance of comfort, performance, and prestige.
– Non-metro cities challenged the dominance of metros in car purchases, as Pune and Ahmedabad experienced a surge in pre-owned car sales. These cities are witnessing a notable increase in car deliveries, with the Maruti Swift and Hyundai Grand i10 emerging as top choices among Indian car buyers. Cities including Kochi, Chandigarh, Patna, Lucknow, Jaipur and Surat also contributed to the increasing car sales in the used car market. In terms of metro cities, New Delhi emerged as the top purchaser of cars in Q2, followed by Bangalore, Hyderabad and Kolkata.