The heavy depreciation in luxury car prices has made this segment the preferred choice in the used car market.
OLX, an online marketplace that lists used automobiles on its site, in a report said that used luxury cars priced above ₹15 lakh were being preferred by customers.
‘1.4 million transactions’
The firm analysed more than 1.4 million automobile transactions on its platform from January to April 2018.
As per the report, titled OLX Auto Note, top-end sedans and luxury cars added up to 38% of the total four-wheeler listings on the platform.
Hatchbacks were close to 45% of the listings and SUVs accounted for 10% of the pie. Commercial vehicles had 7% share.
“With over 55,000 luxury cars (priced above ₹15 lakh) listed on OLX every month, supply for premium cars jumped by over four times in 2017. The demand for such cars has also recorded a threefold growth,” OLX said.
“BMW emerged as the most popular carmaker in the luxury segment. Models like 320d, 520d and 730 Ld received the highest enquiries on the platform,” OLX said.
“Shorter holding time and high depreciation of luxury cars at 25% makes them an attractive purchase,” the online marketplace added.
Shorter ownership cycle, new product introductions and infrastructure development is fuelling the demand for used cars, it added.
As per the trends the demand from non-metros is increasing. “Two out of four buyers are from non-metros. While people in Metros are selling higher than non-metros. Three out of four cars listed on the platform are from metros,” OLX said.
“If we look at the pre-owned car market, it has surpassed the size of the new vehicles. While this market has grown rapidly there is little information on market trends. We had to analysed over 1.4 million automobile transactions to come out with a detailed overview,” Sunny Kataria, director Auto Category, OLX India said.
Shubh Bansal, co-founder and chief marketing and growth, Truebil, an omnichannel platform for used cars said, “There has been an increase in demand of small SUVs. With inclusion of high-end luxury cars, the Indian buyer's extreme familiarity towards used luxury cars will grow more. The pre-owned luxury car market in India is on its way to becoming the fastest growing segment of the overall used car space.”
