Indian automobile industry is considered to be one among the top ones in the global market. But, this year the sales numbers have not been too impressive for most leading carmakers in the country. Sometime during the second and third quarter, the sales had witnessed a good growth, but then it continued to take a fall. Some state that rising inflation cost and high interest rates have affected car sales in the country as most buyers have reportedly postponed their purchase decisions.
On the other hand, used car sales in the country are reportedly growing quickly in the country. Speaking more on the occasion, RS Kalsi, executive director, marketing and sales, Maruti Suzuki India Ltd, said, “Exchange accounts for 30% of our new car sales. This used to be a mere 4% around 10 years back. In fact year-on-year the exchange penetration has strengthened, as part of a focussed strategy of the company to expand this business to drive new car sales. We are targeting over 300,000 mark this year.”
Adding further to the used car situation in the country, Vinay Sanghi, Founder & CEO of online auto portal CarTrade.com said, “The reason is the population of cars is going up. Secondly, earlier where people used to hold cars for 7 to 8 years, now people hold cars for 3 to 4 years. The actual ownership lifecycle is coming down. The average users are selling their cars over 3-4 years and that has enabled the business to grow.” Most leading carmakers in the country would agree that in comparison to new car sales used car market has been growing faster with in a better trending pattern.
