HomeNewsMore Indians will be looking to buy used cars amid economic crisis

More Indians will be looking to buy used cars amid economic crisis

The post COVID-19 market will force consumers to opt for private cars, instead of cabs.

The Indian auto sector is going to make wholesale changes to ensure production, supply and sale of vehicles after lockdown take place as per the required hygiene standards. But a new survey report suggests that in addition to the industry, the buyers will also make a slew of changes, depending on what they feel like investing. First up, the good news, according to this report by Cars24, 42% of the people will be compelled to buy a car for the family, and more than half of those consumers will intend to do that within the next six months.”

With the festive season around the corner, the auto sector would be hoping that consumers decide to make all their deferred spending in one go, which is likely to change the mood of the market, and in some ways, for the economy as well. Having said,46% of respondents of the survey highlighted their need to lower down the budget for buying the car, especially since the pandemic has resulted in job losses or pay cuts. Which is why 50% said they would rather invest in pre-owned cars, which will be cost-effective and meet their immediate demands at the same time.

The survey took place across various digital platforms through which more than 3,600 consumers from 11 metros and 37 non-metro cities shared their feedback about owning a car in the post-COVID-19 scenario in the country.

The pre-owned car market has seen an interesting trend over the past few years. But it’s likely the pandemic is going to make the biggest impact for the sector, something that will appease car makers to some extent. But they will also be praying that some section of the consumers is still willing to open the chequebooks to make their big-ticket purchase, something which got pushed because of the lockdown.

The sentiments are divided about this situation right now, especially when the production of new cars is just about to begin at most companies this week. Maruti Suzuki, Hyundai, and MG Motors are likely to be part of the list, who’ve prepped up to meet the social distancing norms in their plant, and making sure that all employees are thoroughly tested for any health issues before entering the premises.

Aggregators take a hit

The preference for private vehicles is also going to put a dent on the cab aggregator business, for giants like Uber and Ola. The report mentioned that 55% of the people who used cabs to commute before the lockdown and the struck the country, they would now prefer driving their own cars. This change also implies the shared mobility models like Uber Pool, Ola Share will take a backseat since nobody will be keen on tagging along with multiple people in the same car from now.

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