Spinny Issues Year-end Report; Witnesses 60% Increase In First Time Car Buyers
Used car retailing platform, Spinny has issued a year-end report where they have reported a sizable growth in demand for used cars, especially from metropolitan cities.
As per the report, it witnessed a 60 per cent increase in first-time car buyers across India in 2022 as compared to 57 per cent in 2021.
Valued at $23 billion in FY 2021-2022, the used-car market is projected to grow double the rate, at a CAGR of 19.5 per cent till FY 2026-2027. As per data from Spinny, cities that saw the maximum demand for used cars in 2022 was Bengaluru, followed by Delhi-NCR and Hyderabad. In addition, Spinny saw an increase of 32 per cent in women buyers compared to 28 per cent in 2021.
Spinny Insights 2022 | |
First-time car buyers | 60 Per cent |
Women car buyers | 32 Per cent |
Home deliveries | 85 Per cent |
Online purchases | 48 Per cent |
Top three car-buying cities | Bengaluru, Delhi-NCR and Hyderabad |
Top three preferred car brands | Maruti Suzuki, Hyundai and Honda |
Top three preferred car models | Hyundai Grand i10, Hyundai Elite i20 and Renault Kwid |
Top three preferred colours | White, Silver and Grey |
Online purchases were highest in Bangalore with 68 per cent, followed by Delhi NCR with 63 per cent and Hyderabad with 62 per cent. In terms of favoured brands, the country's most popular brands that still hold sway on spinny are Maruti, Hyundai, Honda & Tata cars and Grand i10, Elite i20, Kwid & Ecosport topping the chart for top 4 car models.
Colours like white, Silver and grey specifically in that order, take the top favorite spots among Spinny buyers.
With factors such as financing options, digitalisation, increased need for personal mobility, lesser cost of ownership, etc. acting as growth drivers, Spinny noted that 64 per cent of corporate professionals bought used cars in 2022.
Among model categories, hatchbacks remained the most preferred option for Spinny buyers, followed by sedans and SUVs. While Delhi NCR and Mumbai car buyers preferred white, silver and grey colour cars, in Bangalore and Chennai, red cars saw a great uptick, along with the white and Grey as preferences.
Commenting on the rise in demand for used cars on its platform, Niraj Singh, Founder & CEO of Spinny, said: “The market for used cars is growing at a steady rate and this marked shift in customer behaviour can be sizably attributed to the trust customers have in Spinny’s offerings and services. We understand that a car is a special purchase for a home and our endeavour is to make it extra special for each of our customers.”
As 2022 comes to a close, the months that witnessed major sales were December followed by October, August and May. Moreover, 85 per cent of Spinny buyers opted for home deliveries and home test drives & 48 per cent were completely online purchases.
Over the last couple of years, Spinny has had a cumulative customer base of over two lakh, operating more than 57 car hubs, including Spinny Max and Spinny Park experiential spaces across the country with a total parking capacity of over 10,000 cars.
The growth rate in Q4 was 1.5X that of Q3. The Spinny platform also saw a spike in demand during the festive season, with 307 cars sold on the 1st Day of Navaratri, followed by 204 on the 10th Day (Dussehra). In addition, 65 per cent of Q4 buyers were first-time buyers.
In terms of luxury used car trends, Spinny Max has witnessed a high demand from Delhi-NCR followed by Bangalore & Mumbai. The demand is constant for brands like BMW, Audi and Mercedes, with Mercedes-Benz C-Class, Audi Q3 & BMW X1 Series being the most sought after car models. White, Black and Blue were the top favourite colours among the buyers.
