Bengaluru, October, 3: In a remarkable twist to the Indian car market narrative, one city has emerged as a hotspot for pre-owned car enthusiasts, and it’s none other than Bengaluru. The driving force behind this phenomenal transformation is CARS24, India’s leading AutoTech Company. In the first half of 2023, Bengaluru witnessed an astounding 133 percent spike in used car sales compared to the same time previous year, ushering in a new era of economical and savvy vehicle ownership.
The Silicon Valley of India, Bengaluru, in recent times, has witnessed a notable paradigm shift in the perception of car ownership, particularly among the younger demographic. This transformative trend is attributed to the increasing choices available to consumers via streamlined and efficient platforms such as CARS24. The surge in used car transactions in the city reflects a shared understanding of the economic advantages, convenience, and accessibility that come with pre-owned vehicles.
Since its launch in Karnataka in 2015, starting with Bengaluru, CARS24 has swiftly expanded its presence and now serves customers in twelve (12) cities across the state. This presence has firmly established CARS24 as the preferred destination for both automobile enthusiasts and sellers alike, triggering a significant transformation in the pre-owned vehicle market.
“The substantial increase in used car sales is a promising indicator of Bengaluru’s dynamic automobile market.” noted GajendraJangid, Co-Founder of CARS24. “However, it signifies more than just a preference for pre-owned vehicles; it represents a broader shift in consumer mindset that is contributing to the reshaping of various sectors. This trend underscores a growing emphasis on practicality and cost-effectiveness, echoing a mindset that’s actively influencing the future direction of our economy.”
In a city renowned for its traffic challenges, CARS24 is committed to simplifying the car-buying process, delivering a hassle-free experience to Bengaluru’s residents. Furthermore, CARS24’s recent data offers valuable insights into Karnataka’s used car market, revealing unique customer preferences within Bengaluru, where models like the Maruti Suzuki Swift, Renault Kwid, and Hyundai i20 are particularly favored.
The data provides valuable insights into the thriving pre-owned car market in Karnataka, capturing the varied choices of customers across the state.
Hatchback Models: Swift, Baleno, i20, and Kwid Lead the Way as Top Choices in Bengaluru
Bengaluru’s car market is undergoing a notable transformation, with practicality becoming the key driver. Customers are broadening their choices, leading to increased demand for models like the Maruti Swift, Renault Kwid, Hyundai Elite i20 City, and Volkswagen Polo, departing from conventional preferences. This shift reflects the preferences of Bengaluru’s predominantly youthful buyer demographic, with the average age being under 35. They prioritize practicality for their daily commutes to work, college, and other engagements, seeking vehicles that offer reliability and comfort for their families. This growing trend emphasizes a practical approach in the car market, where functionality and value take precedence.
Hatchback models have emerged as the preferred choice, not only for their affordability, with many priced under INR 6 lakhs but also for their efficient use of space and fuel economy, making them the perfect fit for the region’s urban landscape.
SUVs and Mini SUVs: Bengaluru’s New Found Love for Elevated Drives
As the Bengaluru car market continues its transformative journey, the rise of SUVs and Mini SUVs deserve a special mention too. These rugged, powerful and stylish vehicles are capturing the imagination of Bengaluru’s car enthusiasts. With their versatile designs and spacious interiors, SUVs are becoming the preferred choice for those seeking both city-friendly practicality and adventurous spirit. Hyundai Creta, MarutiBrezza, Mahindra XUV 700, Ford Ecosport are amongst the popular choices.
Mileage Remains the Top Concern for Bengaluru’s Car Buyers, Premium Features in Demand
While there’s a noticeable shift towards premium cars in Bengaluru, one crucial factor still dominates the minds of car buyers in the city: mileage. In the first half of 2023, prospective buyers in Bengaluru were consistently enquiring about the mileage and fuel efficiency of various cars, with this question cropping up every 2 minutes. The most frequently asked question remained, “what is the average of this car?”
Interestingly, alongside mileage, premium features like airbags, driver assist systems, autoplay music systems, large screens, sunroofs, and more gained popularity, indicating that Bengaluru’s car buyers are willing to invest in added comforts and advanced technologies. This is also another reason why CARS24 has noted a surge in the middle variant (VXI) of various cars experiencing a surge in sales. Another noteworthy shift in Bengaluru’s car market was the surge in people opting for cars in different colors, moving beyond the traditional white and gray choices. These trends are expected to grow as buyers seek not only efficiency but also enhanced driving experiences.
Car Financing Gains Ground in Bengaluru: Zero Down Payment Offers Convenience and Flexibility!
Car financing is becoming increasingly popular among Bengaluru’s car buyers, as more individuals opt for this convenient approach to own their desired vehicles. To enhance this appeal, CARS24 introduces a zero down payment choice, simplifying the purchasing process even further. In fact, the Bengaluru used market has recorded a 130 percent increase in cars financed in Bengaluru in the first half of 2023 in comparison to the same time last year. Data analysis highlights salaried professionals as the main group of loan applicants, with an average monthly installment (EMI) of ₹11,500 and a preferred 6-year financing period. This rising trend not only grants buyers more flexibility but also eases payment commitments, making car ownership more attainable and manageable.
The availability of financing options is driving more millennials to purchase cars, with a majority of buyers under 35 years old.
CARS24 Transforms Car Sales: People of Bengaluru Sold Cars Worth Around INR 500 Crores in April-June Quarter
CARS24’s data reveals a remarkable milestone in Bengaluru’s car market, with people from the state selling cars worth almost INR 500 crores on the platform in 2023 (till August). The current trend of replacing cars within a few years has significantly contributed to this exponential growth. This could be due to various factors such as changing preferences, the desire to own newer models with advanced features, or the availability of attractive financing options. As a result, more people are choosing to sell their used cars, creating a vibrant market for platforms like CARS24 that offer convenience, trust, and a streamlined selling process.
Fun Fact : The maximum cars sold by the people of Bengaluru were also by Maruti, the most sold model? You guessed right- Maruti Swift
With a strong presence in more than 150 plus cities across India, CARS24 is playing a pivotal role in reshaping the future of car sales and ownership, as the automobile industry embraces emerging trends and technologies.
