Spinny, a used-car retailing platform has shared insights of sales in the first quarter of CY2023. The company says it saw considerable growth in demand for used cars, especially from Tier 1 and Tier 2 cities, of which 65% are first-time car buyers (January 2023 to April 2023) as compared to 60% in 2022.
It estimates the used car market at $23 billion (Rs 189,681 crore) in FY 2023, which is projected to grow double the rate, at a CAGR of 19.5% till FY2027.
As per data from Spinny, the maximum demand for used cars came from Bengaluru, followed by Delhi-NCR, and Hyderabad. Kolkata led the way with 93% of customers opting for home delivery. In addition, it saw an increase of 36% in women buyers compared to 32% in 2022.
Online purchases were the highest in Bengaluru at 75%, followed by Delhi at 68% and Hyderabad at 63%. In terms of brand preference, Maruti Suzuki and Hyundai remain the most favoured brands, Renault emerged as a surprise entry gaining popularity in the used-car market. The most in-demand car models include Baleno, Elite i20, and Kwid, with Creta and Ciaz being the popular pick among metropolitan cities. Silver remains the most popular colour, with Reds catching up to Greys.
The company says with easy financing options, rapid digitalisation, an increased need for personal mobility, lesser cost of ownership, etc. acting as growth drivers, Spinny noted that 67% of corporate professionals bought used cars in Q1 2023. While hatchbacks remained the most preferred option for Spinny buyers, there’s a growing demand for compact SUVs. When it comes to colours, Delhi-NCR prefers white, silver and grey; however, in cities like Mumbai, Kolkata, Bangalore, and Chennai, red colour is the popular choice, along with white and grey colours.
During the Covid-19 pandemic, there was a greater emphasis on online deliveries as the demand shifted in that direction. However, after the pandemic, consumers are visiting physical hubs and parks to choose from the assortment and buy cars. Thus, there were 70% home deliveries and 30% of customers visited hubs. In Pune, Ahmedabad and Bengaluru, 50% deliveries were served from Spinny Parks.
Niraj Singh, Founder & CEO, Spinny said: “The used-cars market is growing at a steady rate and this marked shift in customer behaviour can be sizably attributed to the trust customers have in Spinny’s offerings and services. We know that a car is a special purchase for a home and our endeavour is to go far and make it special for each customer.’”
In the last two years, Spinny’s customer base has risen to over three lakhs, with more than 57 operational car hubs, including Spinny Max and Spinny Park experiential spaces across the country with a total parking capacity of over 10,000 cars.
The company says the growth rate between January 2023 and April 2023 was twice as high as the same time last year. The demand experienced a surge during the festive week of Holi, with an average of around 200 cars sold per day, and the peak of Navratri served about 450 deliveries. Furthermore, the figure rose to 314 cars sold on the day of Akshay Trithiya.
In terms of luxury used car segment, Spinny Max witnessed a high demand from Delhi-NCR followed by Bengaluru and Mumbai. The demand was constant for brands like BMW, Audi and Mercedes, with Mercedes-Benz C-Class, Audi Q3, and BMW X1 Series being the most sought-after car models. The company says it enabled over 5,000 test drives for the premium used cars across India and shipped over 80 cars in Tier 2 and Tier 3 cities. White, Black, and Blue remain the top favourites among luxury car buyers.