At a time when new luxury car sales are down by 10-15 per cent owing to uncertainties on diesel vehicles and a sudden shift of buyer preference towards petrol cars, the used luxury vehicles segment is on a roll, according to online automobile transaction platforms such as Droom, CarTrade and CarDekho.
Vinay Sanghi, founder of CarTrade.com, says the used luxury segment has been clocking 30 per cent growth over the past few years, primarily driven by the growing population of luxury cars available in the country.
The luxury vehicles segment, which comprises one per cent of the Indian car market, grew 13 per cent in 2015 to about 35,000 units. The industry says for every new car sold, 1.3 used cars find buyers. Sandeep Aggarwal, founder and chief executive of Droom, an online marketplace to buy and sell used cars, bikes, scooters, bicycles, aeroplanes, says that luxury used car segment is growing two times faster compared to the new luxury cars segment. By used luxury cars, Aggarwal is talking of vehicles that are priced above Rs 10 lakh.
“New cars are growing at nine per cent year-on-year, while the used cars are clocking a better growth rate at 15 per cent or so. In my opinion, the used luxury car segment is growing at 16-18 per cent at least,” he said, adding that the average ticket size would be Rs 29.5 lakh.
BMW 3 series, Audi A4, BMW 5 series, Mercedes-Benz E-Class, Audi A6, Jaguar XF are the top-selling used luxury cars on Droom and the top cities so far are the National Capital Region, Pune, Jaipur, Mumbai, Bengaluru, Chandigarh, Agra, Meerut, and Thane. Aggarwal added Ahmedabad, Hyderabad, Chennai, Kolkata, Karnal, Nashik, Udaipur, Sonipat, and Roorkee are the emerging cities which are witnessing significant traction. Amit Jain, co-founder and CEO of GirnarSoft, the parent company of CarDekho, too, agrees. He says demand for used luxury cars is driven by the rising aspirational levels among the urban middle class. According to him, online automobile transaction platforms have brought in a certain amount of credibility to the used car business.