Monday, October 19, 2020

Demand for used cars in India

 

Demand for pre-owned cars rose by 25 percent on OLX since February 2020

72 percent of the people surveyed have reduced their car buying budgets

55 percent of the respondents prefer commuting in their own cars

Over the last few months, a spurt in emissions and safety restrictions has seen new vehicle costs shot up, making older vehicles a more 'value-for-money' proposition. The economic toll of the current health crisis has had a cascading impact, further nudging buyers into the pre-owned market.

OLX announced a significant 25 percent rise in demand for used cars until early July in its new 'Auto Note' car industry survey, relative to the rate seen in February earlier this year when the effects of COVID-19 were not yet completely understood. In terms of volumes, the pre-owned car sector is now exceeding the new car market by about a third, and this is projected to expand faster.

The coronavirus epidemic has dealt the automotive industry an unparalleled blow. Although the journey to recovery is long and complicated, the demand for pre-owned vehicles is definitely well placed to stimulate the process and the early results do seem to be positive.


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