Mumbai, July 11 (IANS) India’s old cars are growing rapidly and it is expected to cross 60 million units in this financial year. The reason for this is the increasing demand of conscious buyers towards value, speed in adopting digital technology and easy access to funding. This information has been given in a new report released on Friday.
According to data compiled by Crisil ratings, the sale of old cars is increasing at an 8–10 percent rate, which is more than double the growth rate of sales of new cars.
This boom in the used car market has brought the ratio of sales of new cars to 1.4 this year compared to old cars, which was less than 1 five years ago, indicating a major change in consumer behavior.
The report said that the estimated market price of old cars is now about 4 lakh crore rupees, which is almost equal to the price of sales of new cars in the country.
Anuj Sethi, senior director of Crisil Ratings, stated that the increasing ratio of old cars and new cars indicates long -term changes in buyers’ priorities.
He further stated that the average age of old cars is now decreasing and expected to reach about 3.7 years, which shows that people are upgrading their vehicles faster.
One of the main reasons behind this change is that the digital platform is due to providing better transparency and convenience, which now shows more people confidence in buying old cars.
In addition, due to delay in delivery of new cars due to lack of rare economy and semiconductor at globally, many buyers are turning to old cars for fast access.
The analysis of six major online old car platforms, including the platforms supported by the manufacturers, suggests that these companies, which form almost half of the market of organized old cars, are rapidly expanding rapidly.
According to the report, these platforms are about one-third of the stake in the sale of total old cars in India.
The report said that there is still a lot of scope for development in the old cars market of India. Another factor in the increase in sales of old cars is the increasing availability of financing.
Crisil Ratings Director Poonam Upadhyay said that the margin is under pressure due to high cost, but the trend of offering integrated services such as inspection, house-to-door delivery, insurance and finance will help companies improve their profits over time.
Upadhyay said, “With cost control and continuous demand, most companies in the region are expected to be beneficial at the sooner operating level.”
-IANS
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