Nearly 50 per cent of used car buyers are salaried professionals: Report

Nearly 50 per cent of used car buyers are salaried professionals: Report

The second quarter of the calendar year is usually a dynamic time with appraisals, promotions, bonuses and new roles. The salaried professionals celeb

The Maruti Suzuki Swift and Hyundai Creta dominate the used car market with 70 per cent of first time car buyers opting for the Swift

With more users opting for used cars amidst rising car prices, a new report states that nearly 50 per cent of pre-owned car buyers are salaried professionals. Cars24, a major player in the pre-owned car buying and selling segment has released its quarterly report revealing several interesting trends around used cars. The report further revealed that the Maruti Suzuki Swift and Hyundai Creta are the most in-demand models in the used car market.

Used Car Sales: Tier II markets show explosive growth

The want for personal mobility along with rising new car prices have given a major boost to used car demand in the post-pandemic era. Cars24, in its report for Q2 2024 (April – June), suggested that about 48.5 per cent of used car buyers are salaried professionals. The second quarter of the financial year is usually a dynamic time for the salaried class, the report said, with appraisals, promotions, bonuses and new roles. Several salaried professionals celebrate their career milestones by purchasing personal cars.

Also Read : Used car market revving up. What’s fuelling this growth?.)

Mumbai roads
While the demand remains highest from major metros for used cars, the Tier II markets have shown explosive growth in recent times (Raju Shinde/HT Photo)

The report further stated that the demand for pre-owned car purchases by employees was high in metro cities including Delhi, Mumbai, and Bengaluru. However, the growth in Tier II markets has been explosive in the last quarter with cities like Agra, Coimbatore, Nagpur, and Vadodara leading the charge with a 25 per cent increase in sales on average per city.

Strong economic growth, rising disposable incomes, attractive financing options and a strong desire for personal car ownership continue to be strong contributors for smaller cities and towns to pick up the growth momentum.

Popular used cars: Swift and Creta most preferred

The report further stated that the Maruti Suzuki Swift and Hyundai’s Creta remain the most preferred purchase options for used car buyers. Other popular models include the Hyundai Grand i10, Maruti Suzuki Baleno, Renault Kwid, and Honda City.

Maruti Suzuki, Hyundai, Honda, and Tata continue to have a stronghold in the market when it comes to used car sales. Maruti has a 34.5 per cent market share, followed by Hyundai at 29.6 per cent. Honda holds a 10.6 per cent market share. Interestingly, Tata’s market share grew from 4 per cent to 7 per cent, while MG, Nissan and Kia are also eyeing a larger chunk of the used car pie.

The Cars24 report further revealed that the Hyundai i10 and Maruti Suzuki Alto were the most bought pre-owned models in the last quarter, while the Hyundai Grand i10 and Maruti Suzuki Baleno have been the chart-toppers in 2024 so far. The firm revealed that the Toyota Fortuner was the most expensive used car sold by Cars24 this year at 33 lakh.

Nissan Magnite
The Nissan Magnite has been witnessing a 2x increase in sales in the used car space as the overall demand for SUVs is on the rise

Used Car Sales: High demand for SUVs

Meanwhile, SUVs have witnessed the highest jump in demand with the MG Hector registering a four-fold increase, the Nissan Magnite witnessing a two-fold increase and the Jeep Compass registering a two-fold increase in 2024, compared to 2023. The share of SUVs has risen from 10 per cent to nearly 20 per cent in the last five years, in line with the shift in consumer preferences. That said, hatchbacks continue to account for 60 per cent of used car sales, followed by sedans at 21 per cent, while SUVs are a close third at 19 per cent.

First Published Date: 10 Jul 2024, 17:02 PM IST

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