Pre-used car mart sees vrooming demand for premium SUVs – ET Auto

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According to top used car platforms, many of these vehicles are commanding as much as 60%-70% of their showroom prices in the used mart.

With three-year-old Mahindra XUV700, MG Hector, Kia Seltos and other pricier and more premium SUVs making their way into the used car pool, demand for the above-INR 10 lakh SUV is vrooming in the pre-used car market.

According to top used car platforms, many of these vehicles are commanding as much as 60%-70% of their showroom prices in the used mart. Already 30% of the used SUV segment has moved towards higher end vehicles, dragging the average price of a used SUV in the Indian market to INR 11 lakh.

Ashutosh Pandey, CEO, Mahindra First Choice Wheels, said, “All the bestselling launches in the last three years like Mahindra XUV 700 and Thar, Kia Seltos and MG Hector are now just about starting to come into the used vehicle market in good numbers.”

Typically in three years, a vehicle depreciates around 40%-50%. “But the XUV 700 is selling at 70% of the showroom price — the new version is around INR 26-INR 28 lakh but the used version is INR 16-INR 17 lakh,” he added. MFCW, he said, has seen a two-fold jump in demand for high-end SUVs compared to last year.

Banwari Lal Sharma, CEO consumer business, CarTrade Tech said, “In the first quarter of 2024, our data showed that used car enquiries share of SUVs increased to 40% from 30% three years ago. Among enquiries for INR 15 lakh to INR 25 lakh budget vehicles, 78% were for SUVs despite the fact that the segment has seen a 41% hike in average listing price over the same period.”

This increasing appetite for bigger and more premium SUVs in the used market has meant that the average ticket price of used SUVs has now climbed to INR 11 lakh, say used car marketers. Although 70% of the used market is still dominated by less than INR 10 lakh cars like Suzuki Brezza or Hyundai Creta, the 30% higher end volumes have pulled up the average price curve.

Niraj Singh, founder-CEO, Spinny said, “We have seen a consistent 10% increase in the contribution of SUVs each year over the last 3 years. Particularly, urban residents, including those in metropolitan areas and Tier 1 cities, are expressing a preference for high-end SUVs within the used car market.”

Spinny data, he added, indicates that SUVs, especially automatic models, are the top choice among female buyers and Delhi, Lucknow and Ahmedabad exhibit a significant affinity for SUVs. The big SUV trend is very strong in the west while smaller used SUVs are more popular in the north.

  • Published On Apr 11, 2024 at 12:42 PM IST

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