The Indian used car market is firing on all cylinders, experiencing robust growth even as prices climb. But itโs not a one-size-fits-all picture. While all segments see upward trends, the crown jewel shines brightest on the shoulders of SUVs, leaving hatchbacks in the dust. Buckle up as we navigate the dynamic landscape of Indiaโs pre-owned vehicles.
Price Hike Tsunami: All Boats Rise, But Not Equally
The tide of new car price increases has lifted all boats in the used car market too. Average prices have surged from Rs 3-3.5 lakh to Rs 6-6.5 lakh in just two years, a hefty 100% jump. Vinay Sanghi, CEO of CarTrade Group, points to the 30% new car price hike as the key driver, impacting all car types and pushing buyers towards top-end variants.
SUVs: Kings of the Hill, Hatchbacks Struggle for Air
The Times of India reports a fascinating phenomenon: a used SUV can be yours for the price of a new hatchback! Gajendra Jangid of CARS24 confirms, with used SUVs starting at Rs 3.5 lakh compared to hatchbacks at Rs 2 lakh.
But which SUVs reign supreme? Neeraj Singh of Spinny reveals compact SUVs like the Kia Sonet and Hyundai Venue lead the pack, while luxury models like the Mercedes-Benz C-Class, Audi Q3, and BMW X1 Series find favor in the premium segment. Prices range from Rs 2 lakh for a Grand i10 to Rs 7.5 lakh for a C-Class.
Hatchbacks: A Shifting Tide
The hatchback story, however, paints a different picture. Ravi Bhatia, President of JATO Dynamics, attributes the decline in the entry-level segment to the SUV surge. With used SUVs becoming increasingly affordable, budget-conscious buyers are opting for bigger, better-equipped B-segment cars like the Honda Jazz and Ford Figo at similar price points. Additionally, the lack of new offerings in the entry-level segment further dims its appeal.
Market Momentum: A Powerhouse in Motion
Despite the price hikes, the used car market remains a powerhouse. Boasting a size of 5.5 million units and growing at an annual rate of 10-12%, it dwarfs the new passenger vehicle market of over 4 million units.
Final Notes: Buckle Up for an Evolving Ride
The Indian used car market is in a fascinating phase. SUVs are the undisputed kings, while hatchbacks face an uphill battle. Price hikes are a reality, but the overall market remains buoyant. As SUV dominance solidifies and entry-level segments adapt, itโs clear that the used car landscape is constantly evolving. So, buckle up, fasten your seatbelt, and prepare for an exciting ride!