India has always been a strong potential market for global automakers with every leading carmaker comparing against each other across segments in the country. Since last couple of years the sales for new cars have witnessed a constant dip, reasons being rising fuel cost and overall cost of ownership for a new vehicle. But interestingly, this time around a report by one of leading consultancy and market research firm named 'Frost & Sullivan' has stated that for every new car that is sold in the country the numbers were equally matched by a used car sold in the country. The report further goes on to state that it expects both used and new car sales to be at around 2.5 Million units this year.
As per JD Power, one of leading global market research firm, has stated that used car sales in the country has grown to about 17% this year as against mere 4% reported back in 2011. Whereas, the new car sales in the country has not been too impressive and remained low. Commenting more on the occasion, Abdul Majeed, partner at PwC India, said, “Due to high inflation as well as interest rates, the positive sentiments have not resulted in increase in the new car sales. Meantime, first-time car buyers are postponing new car purchases and going either for two-wheelers or used cars.”
Leading brands in India like Maruti Suzuki, Toyota Kirloskar and Mahindra & Mahindra, who have also been strong players in the used car sector have also reported impressive growth figures. 'UTRUST' by Toyota has reported growth by about 20%, whereas Maruti Suzuki owned 'True Value' reported about 36% growth in the first half. Speaking more on the occasion, N Raja, Senior VP and Director for Sales and Marketing at Toyota Kirloskar, said, “Customers do consider used vehicle as an alternative option and this has been an increasing trend in the recent past.” Adding to this, Rakesh Srivastava, Senior VP at Hyundai Motor India said, “In challenging times of inflation, high interest rates and high fuel prices, many first-time buyers also seek pre-owned cars.”
Source: TOI
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