CARS24 witnessed an 87 per cent increase in the sale of used cars pan-India this festive season (Onam-Diwali) compared to the same period last year. Used cars worth Rs 1760 crores were sold on the platform, reflecting a significant trend of people upgrading their vehicles as per its report.
Despite the government's push to get people to shift to electric vehicles, the report found that 87 per cent of car buyers opted for petrol vehicles during the festive months. The inclination towards petrol cars was primarily driven by their lower initial costs and diminished service and maintenance expenses. Additionally, regulations allow petrol cars to remain on the road for 15 years, enjoying a five-year longer extension compared to their diesel counterparts, adding an extra layer of appeal to their ownership.
The auto tech start-up noticed increased participation from millennials in car ownership, showcasing a shift towards affordable and value-driven choices. This preference, combined with the availability of quality cars, flexible financing, extended warranties and special deals and discounts, established used cars as a smart choice among young Indians.
Gajendra Jangid, co-founder of CARS24, talking said, “The festive season wasn't just about selling cars; it was about translating aspirations into reality. The trends we see reflect the changing preferences of a dynamic India and serve as a compass pointing towards the exciting future of personal mobility, where dreams continue to drive our dedication and innovation”
The report added that Bengaluru recorded the highest car sales during the festive season among Indian cities. In Mumbai and Pune, Ganesh Chaturthi saw a twofold increase in car purchases, with the WagonR and Honda City leading the way. Ahmedabad and Delhi also embraced the festive spirit during Navratri, experiencing a 67 per cent rise in car sales during the celebration, especially for the GrandI10 and Baleno.
During the festive season, spanning from Onam to Diwali, CARS24 tracked another financial trend when it came to vehicle financing. Loans amounting to Rs 4.7 crore were disbursed on an average daily with maximum applications from young salaried professionals under 35 years of age.
CARS24 processed more than 500 loan applications daily, with a used car loan getting disbursed every 10 minutes. Tier 2 cities have shown a higher intent for financing with 7 out of 10 cars getting financed, the report added.