OLX Autos, a pre-owned automotive platform, conducted a study involving 5,800 car buyers and sellers during August-October 2020 to understand the impact of Covid-19 on the consumer behavior of car buyers during the festive season.
As per the report, 61 per cent car buyers plan to buy a pre-owned car this festive season and 56 per cent of car buyers plan to purchase a hatchback car. The hatchback cars include Alto, Kwid, Santro, Swift, i20, among others.
As per OLX Autos, pre-owned car dealers have 60 per cent plus unsold inventory due to Covid-19. This pent-up demand and unsold inventory with pre-owned car dealers are expected to shore up the sales of pre-owned cars this festive season between November and January.
Owing to the economic uncertainty and rising concerns about personal hygiene, car buyers are increasingly opting for cars as a medium of personal transportation, the study noted.
Festive season mood
The survey revealed that 61 per cent of respondents plan to buy a car in the next 3-6 months, while 15 per cent expressed interest in selling their existing cars. 62 per cent of these respondents are millennials within the age group of 20-35.
The survey added that salaried employees likely to buy pre-owned cars as 51 per cent of the respondents belonged to this category. While 40 per cent of those surveyed were either self-employed or had their own business. Economic uncertainty with the working population has led to a shift in the preference for pre-owned cars.
Also, 67 per cent of the respondents would buy a used car to move around with their families amidst the pandemic. As the economy gradually unlocks and workplaces resume functioning albeit, in a limited capacity, car buyers are shunning shared modes of transportation and opting for personal cars. 22 per cent of respondents would prefer to buy a pre-owned car for their daily office commute.
According to the report, 56 per cent of those surveyed said they would prefer to buy a hatchback car. 44 per cent of the respondents expressed an interest in buying a larger car. 17 per cent would prefer to buy a sedan, including Xcent, Dzire, Etios, City, Verna, and Corolla among others. While 11 per cent would prefer to buy an SUV such as Ecosport, KUV, Innova, Duster, Creta, etc.
The report revealed that 63 per cent of respondents surveyed had a budget of only up to Rs 3 lac for a car while only 30 per cent of respondents are willing to spend over Rs 3 lac to buy a car for their needs.
Commenting on the report, Amit Kumar, Head, OLX Autos India, said in an official statement: “This festive season, celebrations and consumer sentiments will heed on the side of caution as consumer sentiments will remain muted. As India started unlocking, consumers realized that they need to own a personal car to meet their day-to-day personal transportation needs.”
He added: “Post the unlock, demand for pre-owned cars have shot up 133 per cent while supply is up by 112 per cent on OLX as we head into the festive season. India’s pre-owned car dealers have about 60 per cent of unsold inventory which they will aim to liquidate during the festive season.”