About 87% of Indians Choose Petrol Cars This Festive Season: Report

The festive fervour gripped the nation in a display of celebration. Amidst the festive season, Cars24 recorded an 88 per cent increase in the sale of used cars in India compared to the festive season last year (Onam-Diwali).

The nation collectively sold cars worth INR 1760 crore to CARS24, reflecting a trend of people upgrading their vehicles.

Parameters such as quality cars, flexible financing, extended warranties, and special deals and discounts have established used cars as a key choice among young Indians.

Gajendra Jangid, Co-Founder, CARS24, stated, "The festive season wasn't just about selling cars; it was about translating aspirations into reality. The trends we see reflect the changing preferences of a dynamic India and serve as a compass pointing towards the exciting future of personal mobility."

Bengaluru took the lead in car purchases during the festive season, surpassing all other cities nationwide.

During major festivals, car sales soar in specific cities. In Kochi, car sales doubled compared to last year during Onam. In Mumbai and Pune, Ganesh Chaturthi saw a twofold increase in car purchases, with the WagonR and Honda City leading the way.

Ahmedabad and Delhi also displayed a sales peak during Navratri, experiencing a 67 per cent rise in car sales during the celebration, especially for the Grand I10 and Baleno.

Hatchbacks reign, SUVs gain momentum

Hatchbacks took centre stage in the recent surge of car purchases, capturing 65 per cent of the total sales share.

Models like the Swift, Baleno, Grand i10, Alto, and Kwid gained substantial traction, particularly among first-time car buyers transitioning from two-wheelers. Notably, Maruti Suzuki dominates as the preferred brand.

Simultaneously, SUVs witnessed a surge in popularity due to their affordability now aligning with the price points traditionally associated with hatchbacks, allowing them to choose the spaciousness, features and adventurous benefits of an SUV without exceeding the budget set for a hatchback.

This season's mix of hatchback and SUV price points gave the market a new dimension. Some in-demand options include the Maruti Vitara Brezza, Ford Ecosport, Maruti Ertiga, Hyundai Creta and Tata Nexon.

The most expensive car bought during this season was a Ford Endeavour! Despite the fact that Ford is no longer in India, its high-end models remain popular among car buyers.

During the festive season, Indians sold cars for INR 1760 crore; four of those cars were sold to CARS24 every ten minutes.

The driving force behind this surge lies in the allure of newer models on the market with modern features or changing lifestyles. Indians preferred selling their cars in less than 6 years.

While people in Delhi sold the most cars amongst metro markets, Lucknow saw the most people selling their cars from metropolitan markets, followed by Pune and Ahmedabad.

From Maruti to Mercedes, various types of cars are sold on the platform. The cheapest cars sold to CARS24 were a Maruti 800 and a Maruti Zen, while the most expensive car was a Mercedes-Benz E Class.

Petrol cars are in higher demand than diesel-

This festive season, in India, 87 per cent of car buyers opted for petrol vehicles. The inclination towards petrol cars was primarily driven by their lower initial costs and diminished service and maintenance expenses.

Furthermore, rules permit petrol-powered vehicles to stay on the road for 15 years, which is a five-year longer period than that of diesel-powered vehicles.

In terms of colours, this festive season, silver emerged as the top choice among car wners.

While the importance of fuel efficiency had everyone making the query, "Kitna deti hai?" which means seeking the mileage numbers, the savvy shoppers also delved into the intricacies of maintenance costs.

Buyers inquired about the resale value of the cars, which stands as testament to their foresight in making a four-wheeled investment.

Loans worth INR 4.7 crore are disbursed every day during the festive season (Onam-Diwali).

During the festive season, spanning from Onam to Diwali, a unique financial trend emerged as loans amounting to INR 4.7 crore were disbursed on average daily, with maximum applications from young salaried professionals under 35 years of age.

CARS24 processed more than 500 loan applications daily, with a used car loan getting disbursed every 10 minutes. Tier 2 cities have shown a higher intent for financing, with seven out of ten cars getting financed.

The most financed car brands emerged as Maruti and Hyundai and maximum loans were disbursed for the Hyundai Grand i10.

An interesting layer to this financial phenomenon was the 15 per cent increase in women actively seeking car loans and subsequently purchasing vehicles.