Hatchbacks continue to dominate the used car segment, with SUVs slowly gaining traction

Maruti Suzuki Swift, Hyundai i10 and Hyundai Grand i10 were the best-selling pre-owned hatchbacks for CARS24 in CY 2021, while Ford EcoSport and Maruti Suzuki Vitara Brezza were the best-selling SUVs.

Hatchbacks remain the preferred choice of Indian customers when it comes to buying pre-owned cars. After witnessing strong growth in their volumes in the new car market, SUVs (sports utility vehicles) are also slowly gaining traction in the pre-owned car market.

Currently, hatchbacks account for almost 40% of the volume of new cars in India, while the share of SUVs is close to 38%. According to Crisil, total car sales in the country are estimated at between 4.2 million units and 4.4 million units in FY22 compared to 3.8 million units in FY21.

“Among the reasons for increasing growth in the used car market are a structural reduction of replacement cycle from about 7-10 years to about 4-7 years, availability of better options and preference of customers to upgrade to a used car with higher segments while spending similarly. to a new car with lower segments, “Pushan Sharma, director, Crisil Research.

“The car market for pre-ownership has shown an increase in demand for UVs compared to other car segments from about 17-19% in FY18 to about 19-21% in FY21. Due to the frequent launches, UVs are witnessing a faster replacement cycle, which increases the supply of used UVs, ”Sharma added.

Maruti Suzuki India, which sells pre-owned cars through the True Value channel, witnessed a 7% increase in volumes to more than 294,000 units in FY22 from almost 275,000 units in FY21. While hatchbacks contributed 83% to sales in FY22, their share was 84% ​​in FY21. Since then, its share has improved to 12% in FY22 from 11% in FY21, while the contribution of SUVs has grown to 6% in FY22 from 5% in FY21.

Shashank Srivastava, Senior Director, Marketing and Sales, Maruti Suzuki India, said that sales of used cars in FY22 were mainly driven by an increased preference for personal mobility caused by Covid-19 security concerns and the impact of the pandemic on revenue levels with Customers rather used cars as a more economical option to fit into their budget. Among the company’s best-selling pre-owned models in FY22 were Alto, WagonR, Swift, Omni and Dzire.

“Drilling used cars with low odometer reading was a challenge. Many customers postponed their decision to trade in their used car for a new car and this led to a lower supply of used cars on the market. Because the demand however, continued to increase, the ticket price of used cars increased by 14%, “said Srivastava.

According to CARS24, most car buyers still prefer hatchbacks. The share of hatchbacks, sedans and SUVs was 62%, 21% and 17% respectively in the total volumes of the company in CY21. In comparison, hatchbacks made up 66% of total sales in CY20, while sedans and SUVs accounted for 24% and 10% respectively.

“We observed a two-fold growth in demand for sedans and luxury segments. An interesting trend to note, however, was that the SUV segment recorded the strongest growth (fivefold), as affordability drove the demand for SUVs,” he said. Kunal Mundra, CEO, India, CARS24.

Maruti Suzuki Swift, Hyundai i10 and Hyundai Grand i10 were the best-selling pre-owned hatchbacks for CARS24 in CY 2021, while Ford EcoSport and Maruti Suzuki Vitara Brezza were the best-selling SUVs.

India’s used car market is recording a larger growth rate than new cars. Due to the waiting period for new cars and the preference of young Indians for personal mobility, the used car market must be a more realistic choice amid proven pandemics and other factors , “said Niraj Singh, founder and CEO, Spinny. Maruti Suzuki Swift, Hyundai Grand i10 and Hyundai Elite i20 were the best selling pre-owned passenger cars (PVs) for the company in FY22.

The contribution of hatchbacks to the total sales of Spinny came down to 48% in FY22 from 53% in FY21, and that of sedans to 23% in FY22 from 26% in FY21. However, SUVs were witnessing growth to 29% in FY22 from 21% in FY21.

Dream claimed it had seen a threefold growth in business in recent months with Hyundai Creta, Maruti Suzuki Vitara Brezza, Toyota Fortuner, Toyota Innova Crysta and Mahindra XUV500 its five best-selling pre-owned PV models in FY22.

“The chip shortage has played a major role in our growth, as the supply of new cars is limited. Moreover, according to Covid, people no longer prefer ride-sharing and public transportation, resulting in a high demand for used cars. Overall, we have seen a threefold increase in our business, “said Sandeep Aggarwal, founder and CEO, Dream.

OLX Autos India CEO Amit Kumar said that due to the growing need for personal mobility, affordability, more financial support and a low penetration of new cars in India, it is expected that the sale of pre-owned 1.5 times the sales of new cars will reach in the near future. five years. In FY22, Maruti Suzuki Swift, Maruti Suzuki Alto and Hyundai i10 were among the best-selling hatchbacks for the company, while there was enormous traction for SUV models such as Hyundai Creta, Mahindra Scorpio, Mahindra XUV500.

Given the increase in first-time buyers in the used car segment, the preference for budget cars in the bracket of less than Rs 3 lakh has seen a sharp rise, Kumar said, adding that the demand for SUVs has also registered high growth .

Big Boy Toyz founder and MD Jatin Ahuja said the SUV segment’s share in the pre-owned car market will continue to grow over the next five years. The company, which sells only luxury used cars, witnessed a growth of almost 16% in volumes in FY22, with sales of SUVs being substantially higher than those of sedans.

The five best-selling PV models for Big Boy Toyz in FY22 were Mercedes-Benz GLS, Mercedes-Benz GLE, BMW X7, BMW X5 and Range Rover Sport, all SUVs.

Read also – Faster service and repairs for Mercedes-Benz cars available in more cities


Notice: ob_end_flush(): failed to send buffer of zlib output compression (0) in /home/rvpgmedi/public_html/wp-includes/functions.php on line 5275