Even in the Pandemic era, the Used Car market continues to grow.
The Pandemic affected the Auto Industry massively. As it were, 2018 and 2019 were years that saw gloom in the industry. However, the used car industry continued to buck the trend in 2020 too; and is still growing across India.
The enquiries , for used cars, were up by about 10% against a decline of 16%, for new cars, as per executives at India’s leading car manufacturer Maruti Suzuki. As Mr.Shashank Srivastava, executive director at Maruti Suzuki, said the current ratio of used cars to new cars had gone up to around 1.6 (earlier 1.4). Reduced incomes and job losses for the salaried class, loss of business for the first three months, reduced hiring - due to lockdown, and then restricted business scope later, rising fuel prices, and no relief in the budget may have been factors that affected the purchasing power of the customers.
Also, the changing office working of WFH across sectors, massive slowing down of realty/retail/services too may have played their part in slowing down the need for new car purchases. All this affected the purchasing power confidence of the customer.
And we cannot discount the apprehensions of people to infections of the Covid19 virus. The above, has, however, increased the need for personal transport.
Customers affected by the various uncertainties due to the Pandemic are now looking for Value for Money and functional requirements. Used cars are hence being increasingly seen as an option for the same.
And the more the uncertainties of the Pandemic continue, expect more the increased interest in used cars over the new purchases.