Used Luxury Car Market in India Growing By 20 Percent Annually: Report

A surge in the sales of used luxury cars has been observed in India with the market of such vehicles growing by nearly 20 percent yearly, as per a 2022 year-end report by used luxury cars platform Spinny Max. The report states that the platform witnessed high demand for pre-owned luxury cars from youngsters where more than 60,000 units were sold on average in a year. It further reveals that BMW, Mercedes-Benz, and Audi were the most preferred brands for customers who planned to bring home a second-hand car. Other brands that gained popularity were Volvo, Jaguar, and Land Rover.

Also Read: Indian Pre-Owned Car Market is Shifting Dynamics, at Cusp of Online Revolution

Models such as BMW 3 series, Mercedes-Benz C-Class, and Audi Q3 took the lead in the sales chart. In terms of colour, white was the most popular among customers followed by grey and black. Cities like Bangalore, Delhi, Mumbai, and Gurugram accounted for the majority of buyers of used luxury cars.

According to Niraj Singh, Founder and CEO of Spinny, the used luxury cars segment grew significantly in 2022. “The market emerged as great value for money as it allows accessible luxury. In addition, used luxury vehicles in the pre-owned market tend to have a lower average age compared to non-luxury brands, making them an attractive option,” Singh was quoted as saying by the publication.

The CEO attributed the surge in sales of luxury cars to the rise in disposable incomes of professionals aged between 30 and 40 years. He said this has triggered a huge demand for luxury cars in metro and tier-1 cities.

In April last year, Kunal Mundra, CEO of Cars24, highlighted that the appetite of youngsters for pre-owned cars had increased. He said technological advancement in the past few years has led to a transformation in the used car market. “Today, India is considered one of the highest potential markets for pre-owned cars, as car ownership continues to stay at a meagre 2% indicating only 2 out of 100 people are car owners as compared to our international counterparts,” said the CEO.

He highlighted that earlier people used to feel embarrassed about owning used cars but the sentiment has changed now. Mundra said customers no longer feel ashamed about using pre-owned cars and consider it as a more practical option.

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