The new car market is estimated at round 30,000 items a yr in gross sales in yr, whereas the used car market for luxury autos is estimated at round 60,000 vehicles yearly.
Pavan Lall experiences.
IMAGE: BMW 3 Series Sedan. Photograph: Kind courtesy, BMW India
Premium German car-makers Audi, BMW and Mercedes-Benz eternally grapple with the problem of excessive import duties coupled with a shopper tradition that is solely now coming to phrases with conspicuous consumption.
The silver lining for them is beginning to seem in the type of rising used luxury car gross sales as volumes begin to slowly accumulate over the years.
The new car market is estimated at round 30,000 items a yr in gross sales in yr, whereas the used car market for luxury autos is estimated at round 60,000 vehicles yearly, say automotive executives who watch the sector keenly.
BMW India, which arrange its used car programme known as BMW Premium Selection in 2011, says demand has seen the ratio of gross sales enhance to 2:1 for brand spanking new to used vehicles.
That is a transfer upwards from earlier, says Vikram Pawah, president, BMW India.
IMAGE: BMW X1. Photograph: Kind courtesy, BMW India
“That’s been extra noticeable in the final 12 months as individuals proceeded to purchase vehicles which might be used versus model new ones.
“This was the very same factor we noticed throughout the Lehman Brothers monetary disaster,” he provides.
“BMW offered round 6,600 vehicles final yr, with round 1,600 used vehicles in addition, via its Premium Selection channel,” Pawah says.
“Since its inception, BMW Premium Selection has offered greater than 10,000 pre-owned vehicles.
“The highest-selling fashions embrace BMW 3 Series at round 2,500 items, BMW 5 Series (round 2,500 items) and BMW X1 (round 2,000 items).”
IMAGE: Mercedes C-Class Sedan. Photograph: Kind courtesy, Mercedes-Benz India
Martin Schwenk, nation head for Mercedes-Benz, says that the used car enterprise has been equally constructive for them as nicely.
“We have seen encouraging momentum in the final couple of years in our pre-owned car enterprise, which is run below the Mercedes-Benz Certified international model,” he says, including, “Pre-owned vehicles from Mercedes-Benz and its sellers are listed on our on-line retailer.”
He says the ratio of used Mercs to new ones is 1:4.
That is, 25 per cent of their gross sales come from used vehicles, which underscores the significance of the section.
IMAGE: Audi S5 Sportsback. Photograph: Kind courtesy, Audi India
Audi India’s pre-owned car programme known as Audi Approved: plus has registered a progress of over 20 per cent in the final couple of years, says Balbir Singh Dhillon, head of the programme.
“The pre-owned vehicles enterprise helps us goal entry-level prospects who wouldn’t in any other case have a look at proudly owning a luxury car. We are targeted on promoteing each car at the least twice — if no more.”
So which vehicles are most in demand? It depends upon who is promoting them.
IMAGE: Land Rover Defender. Photograph: Kind courtesy, Land Rover India
Pawah says that for BMW, the 3 Series is all the time the hottest draw “because it’s a car that embodies what BMW is all about in some ways”.
It’s an analogous pattern for Mercedes-Benz.
“Mercedes-Benz India’s best-selling fashions in the used area are the C-Class and E-Class sedans,” Schwenk says.
“We are additionally witnessing elevated demand in the new-generation vehicles portfolio.
“The CLA and the earlier technology GLA are additionally in good demand.”
IMAGE: Lamborghini Urus. Photograph: Kind courtesy, Lamborghini
Those who mixture luxury vehicles see a combined bag.
“Hot-sellers have been the Mercedes-Benz G-Wagon, Range Rovers, Lamborghini Urus, the BMW X7,” says Jatin Ahuja, founding father of luxury auto retailer Big Boy Toyz.
He provides that this is the first time they’re seeing a provide constraint, one thing that has by no means been a problem in the previous.
“July has been the hardest shopping for part and the quantity of vehicles is merely not there,” he says.
“If there was enough stock, enterprise may have grown by 100 per cent as a substitute of over 30 per cent, which we recorded.”
IMAGE: Mercedes G-Class. Photograph: Kind courtesy, Mercedes-Benz India
So who is the used car buyer? Schwenk says, “A pre-owned buyer prefers to improve his buy, appears to be like for high-value return in the buy, and is extremely aspirational.
“We have seen a whole lot of these prospects personal a pre-owned car earlier than shifting to a brand new luxury car a couple of years later.”
Or as Pawah places it: “Mainly it’s the individuals who need luxury however are value acutely aware.
“And whereas they’re able to drive luxury vehicles, they need the certifications and warranties, which organised sellers supply.”