Redefining Modern India Through Pre-Owned Auto Industry

BW Online Bureau Aug 12, 2022

As India prepares to celebrate 75 years of Independence, the Indian Pre-owned car industry has turned out to be ‘Today’s Promise and Tomorrow's Pride’ for the larger auto industry. To celebrate the 76th Independence Day in style, Cars24, pre-owned cars platform has presented its ‘Driving Change’ Report.

Insights from the report present a macro view of the pan-India used car buyer base, their purchasing behaviors and the evolving trends. The findings in the report represent India’s progressive growth.

Some key findings that have emerged for 2022 are:

1. Car Crazed Millennials and Gen Z are looking at micro-investing, mutual funds and crypto as part of their future investment portfolio to be able to own a car. 60 per cent millennials bought a used car registering a growth of 71 per cent YoY, while GenZ grew by 57 per cent

2. Indian women are not only scripting history in sports, case in point CWG 2022, but also sparking off a freedom movement by buying more cars. Women buyers grew by an impressive 80 per cent and are expected to outgrow men buyers in the near future

3. There is a dawning awareness amongst Indians for the benefits of buying their next car online as opposed to the outdated, tedious and tiresome process. 40 per cent potential buyers showed interest in transacting online for their next car purchase

4. Road trips, vacations, commutes, back seats full of kids…Indian life happens on wheels. Like cars, car financing is also becoming an essential part of a modern and young Indian’s life. 76 per cent millennials availed car financing to buy their next pre-owned car and the average loan size was INR 3.5lacs across age groups. Interestingly, 0 per cent down payment also emerges as an attractive pull factor for many to opt for car financing

5. Upcoming metro cities and towns are firing up e-commerce pre-owned car sales. Tier 2 & 3 cities have accounted for over half of the total used car sales in India with first time car buyers leading the demand for pre-owned cars in these markets.