Used automotive costs in India have elevated as much as 10% in a single 12 months: Report

Used automotive gross sales have been hitting bottlenecks for a number of causes.

By :
HT Auto Desk

Up to date on:
30 Mar 2022, 18:06 PM

Maruti Suzuki is among the key gamers within the used automotive market. (MINT_PRINT)

Used vehicles are usually not solely outpacing new automotive gross sales in India however witnessed a value surge by as much as 10 per cent within the final 12 months, claims a report by LiveMint. The report claims that used vehicles are at the moment being offered at a premium of 7-10 per cent over 2020. The report additionally factors out that used vehicles are at the moment quick in provide as automobile homeowners are delaying upgrading or changing the prevailing fashions resulting from employment-related difficulties and excessive inflation shrinking their buying energy.

(Additionally learn: 5 issues to do earlier than handing the keys of your automotive to its subsequent proprietor)

Talking in regards to the rising prices of vehicles, Shashank Srivastava, govt director, Maruti Suzuki, mentioned that many purchasers who had been saving cash to purchase new vehicles or get them financed discover that costs have gone up by the point they arrive to the market to buy. he additionally mentioned that in such circumstances, a used automotive might match their budgets higher. Srivastava additionally identified that the worth of vehicles nearing 10 years was seen to drop sharply as numerous states carried out insurance policies to scrap older autos.

The report additional claims that the variety of automobile homeowners changing a used automotive for a brand new one as a share of complete gross sales has dropped from 28 per cent throughout pre-covid occasions to 18 per cent in 2020-21. It is because the automobile homeowners are preferring to carry their vehicles for an extended time period with a median interval going up from eight years to 9 years within the final 12 months. Nonetheless, Srivastava mentioned that alternative shopping for is choosing up, and the trade penetration was at 19 per cent in February this 12 months.

Ashutosh Pandey, chief govt and managing director of Mahindra First Alternative Wheels, mentioned that used vehicles have all the time been a supply-constrained area, and the current spurt in demand has solely exacerbated this hole. “This has led to a rise within the costs of used vehicles by 5-15%,” Pandey added.

First Printed Date: 30 Mar 2022, 18:06 PM IST

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