NEW DELHI: Pre-owned passenger automobiles market has seen regular restoration and progress in April-July interval this year with demand for such automobiles rising by round 25 per cent this month as in comparison with February, says a report.
According to a report by consumer-to-consumer market for pre-owned gadgets, OLX, the expansion of pre-owned automobiles in July was led by sedans adopted by SUV and hatchbacks.
In phrases of shopper sentiment, 55 per cent of respondents plan to make use of a personal car in the following 6 months and non-metros are key drivers in the demand revival, said OLX’s 4th version of the ‘Auto Note’.
“The spurt in demand for pre-owned personal vehicles is not only owing to hygiene concerns but also due to reduced budgets for buying a personal vehicle. As per industry data, the pre-owned car market outnumbers the new car market by 30 per cent in volume,” the report added.
The report, nevertheless, said desire for public transport, together with cabs is on the decline owing to hygiene considerations with 55 per cent of respondents desiring to commute in a personal automotive in the longer term as in comparison with 48 per cent in pre-COVID days.
Stating that the auto trade is on the highway to restoration, OLX said 56 per cent of respondents deliberate to purchase a automotive in the following 3-6 months and 54 per cent of those plan to purchase a pre-owned automotive in the identical time body.
“However, their preference is likely to veer towards entry-level models as 72 per cent of respondents have reduced their car-buying budget due to COVID-19. For new cars, 39 per cent of buyers have a budget under Rs 3 lakh, with another 24 per cent having a budget between Rs 4 and Rs 7 lakh,” the survey said.
For a pre-owned automotive, 50 per cent of patrons have a funds under Rs Three lakh whereas 20 per cent have a funds between Rs Four and Rs 7 lakh, it added.
OLX and OLX CashMyCar had carried out a research with over 3,800 respondents between April-June 2020, and in addition analysed indicators from over 4.5 lakh month-to-month common ‘patrons+sellers’ on the OLX platform over the identical interval.
Commenting on the findings, OLX India Vice President Auto Sunny Kataria said, “While COVID-19 has been a black swan event for the automobile industry at large, we are starting to witness signs of improvement, especially in the pre-owned cars industry.”
Kataria additional said, “changing preferences, evolving customer needs and an entirely new set of rules for social interactions have given rise to demand in the non-metro cities. Non- metro cities now form a major chunk of buyers and sellers for our platform.”
The company said of all of the respondents eager to purchase a automotive in non-metro cities, 70 per cent of them have an interest in pre-owned automobiles and solely 30 per cent have an interest in a brand new automotive, indicating that these locations are prone to drive the expansion of pre-owned automobiles.
“The narrative flips for metro towns, wherein 70 per cent of the respondents are more likely to opt for a new car,” it added.