According to a study conducted by Volkswagen along with Frost and Sullivan last year, new car sales in India are likely to double by FY2025. In FY2021, sales of the used car market stood at 3.8 million units, nearly 1.5 times the sales of new cars, at 2.6 million units. This gap will widen by FY2025, with used cars selling more than 8 million units and new cars selling less than 4 million units.
One of the most striking trends is the fact that the pre-owned market is witnessing a significant increase in the sales of luxury and premium cars as more and more buyers are looking to buy a pre-owned car in the denomination of Rs. 25 lakh to Rs. 30 lakhs, where a plethora of premium and luxury car models are within the reach of the buyers. Pre-owned luxury car retailers have reported that the demand for cars in the above price segment has doubled, with models such as the Audi A4, BMW X1 and Mercedes-Benz C-Class models available, said an ET Auto report. Huh. This is because the prices of the brand-new model mentioned above have increased by Rs. 20 lakh to Rs. 30 lakh due to BS6 emission norms and a significant increase in input cost for all companies.
Mahindra First Choice Wheels CEO Ashutosh Pandey says that the company has seen 5 to 10 percent growth in its monthly pre-owned luxury vehicle sales and gives examples of customers who usually have cars like Toyota Corolla Altis, Honda ownership takes place. Civics etc are now moving towards old luxury cars.
The report also states that Rs. The 15-18 lakh bracket for the new premium sedans has since vanished, with buyers interested in raising the price range further, even if it means a slump in the used car market.
Source: ET Auto