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      Study reveals increase in preference for used cars among Indian buyers

      CarTrade Editorial Team

      CarTrade Editorial Team

      The impact of crisis in the Indian economy has shown on the auto market as well. Demand for cars has been really low in the past few months and buyers have become increasingly reluctant to purchase new vehicles. This has resulted in the rise of demand for used cars in the Indian car market. A recent study conducted by J D Power Asia Pacific reveals that while making a decision about the purchase of a new vehicle, 13 per cent of buyers ponder over a pre-owned vehicle. This statistic has seen an increase of 10 per cent in the past three years.

      Notably, the 2013 India Sales Satisfaction Index (SSI) study draws conclusions from the opinions of over 8400 vehicle owners who bought a car between the period starting from September 2012 and ending in April 2013. This study, conducted from March to July 2013, also features the analysis of over 70 models that come under the mass market category. According to it, customers who want to purchase a pre-owned vehicle make use of the Internet in order to collect information about financing, trade-in options and areas related to service. On the other hand, buyers of a new car just look up the Internet to know about the features and specifications of the car.

      Mohit Arora, Executive Director at J D Power Asia Pacific, Singapore, elaborated the rising scope of the used-car market in India. "Auto makers have been increasingly focusing on the used-car business in India, specifically with certified used cars which come with a manufacturer warranty. Additionally, auto makers have ushered in transparency via their websites that provide real-time information on used vehicle inventory and price information. These activities assure customers of a quality product by providing detailed insights about the vehicles, thereby propelling the consideration of a used-vehicle purchase," he was quoted as saying.

      For around 14 years now, the firm has been conducting this study, which analyses factors that contribute to the satisfaction of car buyers on the whole. A study pertaining to new car buyers, it includes factors like delivery process, dealer facility, paperwork, delivery timing, salesperson and sales initiation. For 2013, the count for sales satisfaction in the mass segment is 841 points out of a maximum 1000. Notably, the point count in 2013 is 21 more than the one in 2012. Generally, car makers return with a rise in all factors, including delivery timing, paperwork and salesperson.

      There are certain trends and phenomenons that lead to the improvement in the overall satisfaction levels of customers. It is believed that if a salesperson spends a lot of time with customers in order to explain them certain things, the satisfaction levels increase as a result. According to statistics, approximately 61 per cent of people who participated in this study spoke about how the representatives exhibited the good points of vehicles during the test drive. As far as the mass market segment is concerned, Honda and Maruti Suzuki lead the charts with the same score of 849 points while Hyundai, Mahindra & Mahindra and Toyota follow them, clocking 841 points.

      Mohit Arora, talking about the results of the study, explained the possible reason why the index was so high. "Sharp growth in the recent past had resulted in stretching the dealers' abilities in engaging customers effectively during the sales process. Due to relatively lower showroom traffic in 2013, dealers have made efforts to ensure a higher level of engagement during the sales process. In addition, vehicle delivery turnaround time has declined significantly," he said.