Sales of used luxury cars in India is increasing twice as fast as new ones and no less than 50% more quickly than that in 2017.
E-auto platform Droom founder & CEO Sandeep Aggarwal commented:
“Last year, new luxury cars grew at 11 per cent and used ones grew at 14%, while the year before they grew at 9% and 12%, respectively.”
The reason behind the development is the switch of demand from new luxurious models to used ones since the latter is more attractive to customer segments and totally new markets than the former. The driving force for the growth is the increasing number of customers who want to look “luxurious” despite a tight budget and certainly prefer a three-year-old BMW 3 Series to a new Skoda Superb. Although there have been almost no changes in the price gap between the two, used luxury cars are having a much faster growth speed than new ones. Whereas the demand for old luxury cars reached the peak this year, that for new ones remain steady.
It has been certified by Mercedes-Benz that the number of used luxury cars sold experienced a rise by 60% in just three years, from December 2014 to December 2017. A new people group from Kollhapur or Pune are getting to Mumbai to purchase old luxury cars, which can be easily caught sight of in Chandigarh, Jaipur, Punjab, and Bengaluru while 40% of the call for new luxury cars is in the NCR region.
Sales of used luxury cars in India outpace that of new ones
In the 10 leading auto markets around the world, the sales of used luxury cars surpass that of new ones. For example, in the UK, the number of old cars sold is around three times as large as that of new cars. In India, the gap is two times.
In many markets globally including India, people preferring used luxury cars to new ones seems to have become a tendency, partially because of the desire to look “luxurious” despite a limited budget, which is the reason why the sales for the former is developing at a much faster speed than the latter. Update the latest car news in India by visiting our website - IndianAuto.com