On an Average, INR 4.7 Crore Worth of Loans Disbursed Daily on Used Cars this Festive Season
The festive fervour gripped the nation in a spectacular display of celebration, and at the forefront of this season was CARS24, India’s leading AutoTech powerhouse. The company witnessed the realisation of the great Indian car dream and recorded an impressive 88 percent increase in the sale of used cars pan India compared to the festive season last year (Onam-Diwali). The nation collectively sold cars worth INR 1760 crores to CARS24, reflecting a significant trend of people upgrading their vehicles.
A noteworthy highlight this season was the increased participation of millennials in car ownership, showcasing a shift towards affordable and value-driven choices. This preference, combined with quality cars, flexible financing, extended warranties, and special deals and discounts, established used cars as a smart choice among young Indians. As we near the end of the festive season in 2023, CARS24’s DriveTime Quarterly report delves into the key trends and factors that drive India’s automobile decisions.
Gajendra Jangid, Co-Founder, CARS24, talking about the festive season said, “As the season concludes, we feel immense joy witnessing the dreams of car ownership coming to life for countless Indians. 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”
Bengaluru Leads the Pack: Records Highest Car Sales During Festive Season Among Indian Cities
In a surprising turn of events, Bengaluru took the lead in car purchases during the festive season, surpassing all other cities nationwide driven by a strong consumer demand. This unexpected development added a unique twist to the celebrations, highlighting a trend that defied conventional expectations.
During major festivals, car sales soared in specific cities, adding a burst of festive energy. In Kochi, car sales doubled compared to last year during Onam. 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 percent rise in car sales during the celebration, especially for the GrandI10 and Baleno.
Hatchbacks Reign, SUVs gain momentum
Hatchbacks took centre stage in the recent surge of car purchases, claiming an impressive 65 percent of the total sales share. Popular models like the Swift, Baleno, Grand i10, Alto, and Kwid gained significant traction, particularly among first-time car buyers transitioning from two-wheelers. Notably, Maruti Suzuki continued to dominate as the preferred brand.
Simultaneously, SUVs witnessed a surge in popularity due to their newfound affordability, now aligning with the price points traditionally associated with hatchbacks. This shift has broadened possibilities for buyers, allowing them to enjoy the spaciousness, robust features, and adventurous appeal of an SUV without exceeding the budget set for a hatchback. The resulting affordability factor has reshaped the market landscape, making SUVs an attractive choice for a wider range of consumers seeking the versatility and elevated driving experience offered by these vehicles. The blend of pricing boundaries between SUVs and hatchbacks added an exciting dimension to the market this season. Some high in demand options included Maruti Vitara Brezza, Ford Ecosport, Maruti Ertiga, Hyundai Creta and Tata Nexon
Interesting Update: The most expensive car bought during this season was a Ford Endeavour! Despite the fact that Ford is no longer in India, its high end models remain popular among car buyers.
Indians sold cars worth INR 1760 crore during the festive season; 4 cars sold to CARS24 every 10 minutes
According to CARS24, the festive quarter unveiled an impressive surge in Indians embracing new and innovative methods to sell their used cars. Spanning from Onam to Diwali, the nation collectively sold cars worth INR 1760 crores on CARS24.
The driving force behind this surge lies in the current trend of more frequent car replacements within just a few years. Whether fueled by changing preferences, the allure of newer models with advanced features or changing lifestyles, Indians preferred selling their cars in less than 6 years.
While people in Delhi sold the most cars amongst metro markets, Lucknow saw maximum people selling their cars from metropolitan markets followed by Pune, and Ahmedabad.
Fun Fact: From Maruti to Mercedes, CARS24 bought it all! The cheapest cars sold to CARS24 was a Maruti 800 and Maruti Zen while the most expensive car was a Mercedes Benz E Class
Petrol khatam hi nai hunda – Petrol Cars in higher demand than diesel
This festive season India 87 percent of car buyers opted for petrol vehicles. 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 5-year longer extension compared to their diesel counterparts, adding an extra layer of appeal to their ownership.
In terms of colours, this festive season, silver cars stole the show as the top choice among car owners this season. With a timeless and elegant appeal, silver became the go-to colour for those wanting to add a touch of sophistication to their vehicles. The widespread preference for silver suggests that car owners love a colour that combines modern style with a hint of understated glamour, turning every drive into a chic experience.
Diwali’s Hottest Queries – ‘Kitna Deti Hai’ and ‘Thoda aur milega kya?’
Navigating the car-buying buzz during this Diwali, Indians brought a unique blend of practicality and humour to the forefront of their inquiries. While the fuel efficiency importance had everyone asking, “Kitna deti hai?”—seeking the magic mileage numbers, the savvy shoppers also delved into the intricacies of maintenance costs, ensuring their potential rides wouldn’t break the bank after the festive glow faded. Interestingly, customers also enquired about the resale value of the cars which stands as testament to their foresight in making a four-wheeled investment.
In the spirit of festive bargaining, CARS24 corridors also echoed with customers asking “Discount – Thoda aur milega kya?” adding fun to the celebrations.
Loans worth INR 4.7 crore disbursed every day during the festive season (Onam-Diwali)
During the festive season, spanning from Onam to Diwali, a unique financial trend emerged as loans amounting to INR 4.7 crore were disbursed on 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 most financed car brands were Maruti and Hyundai and maximum loans were disbursed for Hyundai Grand i10.
What added an interesting layer to this financial phenomenon was the 15 percent increase in women actively seeking car loans and subsequently purchasing vehicles. This shift highlights a progressive narrative, portraying women not just as car users but as empowered individuals making independent and significant financial decisions.
CARS24, with its record-breaking sales, diverse offerings, and commitment to providing an unparalleled experience, has truly become the driving force behind this year’s festive celebrations. As the confetti settles and the festivities wind down, the platform remains the beacon of reliability and innovation in the used car market, promising to continue transforming dreams into reality. CARS24 is now present in more than 180+ cities in India.
About CARS24
CARS24 is a leading AutoTech company streamlining and revolutionising the sale, purchase, and financing of pre-owned cars in India, Australia, Thailand, and UAE. Leveraging a Smart AI Pricing Engine, and 140 quality checks, selling and buying pre-owned vehicles is seamless and transparent.
CARS24 Financial Services Private Limited, is a professionally managed Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India, offering customer focused value added services. For regular updates on CARS24, follow us on: https://www.linkedin.com/company/CARS24
