Nationwide Obsession: SUV Sales Surge by 40% in Q1’24, Clearly Mirrors India’s Pursuit of Larger and More Advanced Vehicles

2024 has started off with a bang, offering the automotive industry numerous reasons for celebration. Against this backdrop of optimism, LuckyCar24, a key player in India’s Autotech sector, has unveiled its highly anticipated Drivetime Quarterly report, shedding light on the evolving preferences of today’s consumers.

The trends observed this quarter transcend mere numerical growth, indicating a deeper, more significant shift in the perception of car ownership.

The first quarter was dominated by SUV enthusiasts and millennials from all corners of the country who recognized the value of owning a pre-owned vehicle. There was a notable increase in SUV sales from rural markets. LuckyCar24 also conducted surveys among its customers, revealing that many expressed their inclination towards purchasing a used car again.

Our Nation is Changing: 30% Rise in Preference for Pre-Owned Vehicles

During the initial quarter of this year, a notable change occurred in consumer behavior across Tier II and Tier III cities. Compared to the same period the previous year, there was a remarkable 30% increase in the preference for used cars, surpassing the demand for new ones. This growing acceptance of pre-owned vehicles signifies a shift in buyers’ mindsets, as they now seek alternatives beyond brand-new models. Cities such as Ahmedabad, Kochi, Jaipur, Surat, Bhopal, Indore, and Lucknow are particularly embracing this trend, viewing cars not just as means of transportation, but as symbols of style and status. This surge in interest has boosted the market for pre-owned cars with premium features, marking an exciting transformation in the automotive industry.

SUVs Lead the Path: Rural Areas Embrace Larger, High-Quality Vehicles

In non-metro areas, SUVs have taken the lead on the open roads, experiencing an impressive 40% increase in sales this quarter. This transition highlights the escalating demand for larger, more upscale vehicles in Tier II and Tier III cities. Fueled by the versatility, comfort, and advanced features of SUVs, models such as the Ford Ecosport, Hyundai Creta, Tata Nexon, Maruti Suzuki Brezza, and Hyundai Venue are spearheading this trend. The streets are alive with enthusiasm as consumers pursue the ideal combination of style and performance in their vehicles.

Automatic Cars Gain Momentum: Convenience and Luxury Dominate

Moreover, there was a notable 30% uptick in automatic car purchases in non-metro regions during the quarter, signaling a change in consumer inclinations towards vehicles providing convenience and integrated luxury amenities. This pattern underscores an increasing desire for cars that seamlessly combine high-end aesthetics with state-of-the-art technology. Attributes such as sunroofs, compatibility with CarPlay/Android Auto, alloy wheels, GPS systems, and rearview cameras have become essential features for contemporary drivers, enhancing the driving experience to be smooth and pleasurable.

Prioritizing Experience: Increasing Demand for Value-Added Services

Furthermore, there has been a significant increase of 37% in the investment towards value-added services (VAS), signaling a movement towards improving the comprehensive car ownership journey. With an average extra expenditure of INR 9,600 on services such as extended warranties and technological enhancements, consumers are increasingly searching for cars that deliver not only functionality but also luxury, convenience, and assurance. This transition highlights a wider aspiration for vehicles that offer a complete ownership experience, mirroring the changing requirements and desires of modern consumers.

Maruti Continues to Captivate Hearts, While Hyundai and Honda Make Inroads into the Scene!

Maruti Suzuki continues to win admirers with its elegant Swift and daring Baleno. They’re not merely vehicles; they’re infatuations on wheels. But hold on, there’s some competition on the horizon! Hyundai and Honda aren’t just observing from the sidelines; they’re making stylish entrances, catching attention with their designs and captivating car enthusiasts with promises of exhilarating rides. Moreover, more individuals are opting for SUVs from these brands than ever before. Creta leads the pack in popularity, followed by Brezza, CRV, and Ertiga. (As per the company’s classification, station wagons are also included in the SUV category.)

Key Questions of the Quarter: Performance Metrics and Upkeep Expenses

“Kitna chali hai?” and “Maintenance ka annually kitna kharcha hoga?” have emerged as the buzzwords of the quarter among used car buyers. These inquiries indicate a sophisticated and prudent mindset among buyers, emphasizing not only the immediate allure of the vehicle but also its long-term financial commitments. Alongside these, purchasers are also inquiring keenly about the integrity of the car’s history and its potential to make a favorable impression. Another pivotal query revolves around the timeline for purchase completion and commencement of driving. These questions not only seek to assess the vehicle’s performance and upkeep expenses but also consider its past, its capacity to leave a positive impression, and the expediency of the purchasing process. This approach underscores that buyers are not solely focused on acquiring a new vehicle; they are also meticulously evaluating the expenses, dependability, and overall procedural aspects involved.

Color Trends: Syncing with the Mood

The automotive landscape is experiencing a notable shift in color preferences, reflecting changing tastes and identities, particularly among Gen Z consumers. Silver has quickly surpassed the traditional favorite, white, setting a new standard in vehicle aesthetics. This quarter, there’s been a noticeable embrace of more expressive colors—vibrant reds and cool blues have gained popularity, signaling a departure from the norm. Additionally, an unexpected competitor, earthy brown, has emerged, challenging the dominance of primary colors and highlighting a broader trend toward vehicles that express personal style and values. It’s evident that today’s buyers, especially those in the Gen Z demographic, are looking for cars that resonate with their individual vibe and lifestyle, making color selection a crucial aspect of the purchasing process.

Financial Aspirations: Car Loans Worth INR 335 Crores Distributed

The phenomenon of used car financing has evolved into a nationwide movement, highlighting a growing desire for financial independence and translating aspirations of car ownership into reality. Over a brief period of just 90 days, loans totaling INR 335 crores were granted, thanks to a user-friendly financing approach that circumvents traditional down payments, streamlining the process of vehicle ownership. This method particularly resonates with first-time buyers, indicating a significant shift towards more accessible avenues for purchasing cars. The predominant demographic, comprised largely of millennials, emphasizes a deliberate pursuit of personal mobility solutions.

Moreover, this trend extends beyond the urban landscape of India; approximately 30% of loan applicants in this quarter hailed from Tier 2 and Tier 3 cities, showcasing the expanding influence of car financing as a crucial mechanism for acquiring vehicles in rural areas. The Grand i10 emerges as the preferred choice, reflecting a nationwide consensus across diverse regions. The average Equated Monthly Installment (EMI) for pre-owned cars in Q1 2024 amounted to INR 10,200.

The efficiency of the loan process, capable of securing approvals in as little as six hours, mirrors the advancements in financial services and caters to the immediate needs of modern buyers. Furthermore, 20% of all loans disbursed were availed by women, indicating a departure from the traditionally male-dominated audience of car financing. This shift underscores the growing financial autonomy of women and their increased participation in the economy, fostering gender equality in sectors historically dominated by men. These financing opportunities empower more women to take charge of their car ownership decisions, reshaping the landscape of economic empowerment and societal norms in India.

Interesting Tidbit – Recalling the Maruti Zen

The compact champion, known as the “Budget King” in the secondhand car domain, secured its reign once again. On February 8th, 2024, a lucky individual in Nagpur, Maharashtra, seized this compact cruiser for a mere INR 1,15,000. However, before the transaction was finalized, over 200 individuals were vying for this exceptional deal.

Regarding LuckyCar24

LuckyCar24, your trusted destination for high-quality, pre-owned vehicles in New Delhi! Established with a commitment to providing reliable cars and exceptional service, LuckyCar24 is your go-to dealership for a seamless car-buying experience.

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Welcome to the LuckyCar24 Blog – Your Gateway to the Ultimate Used Car Buying Experience! Dive into insightful articles and expert tips on navigating the world of pre-owned vehicles. From choosing the right model to negotiating the best deal, our blog is your trusted companion on the journey to finding your perfect ride. Explore the latest trends, maintenance hacks, and success stories, as we share our passion for connecting you with quality used cars and making every purchase a stroke of luck. Join us on the road to automotive satisfaction – because at LuckyCar24, your journey begins with good fortune!

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