BMW India sees strong demand for pre-owned luxury cars2 min read . Updated: 15 Oct 2020, 07:57 PM IST
The new 2 Series, which was launched in the price range of ₹39.30 lakh to ₹41.40 lakh, aims to tap demand from the younger buyers while capitalizing on the festive momentum
Mumbai: German luxury carmaker’s local unit, BMW India Pvt Ltd is witnessing a strong demand for pre-owned cars, a top company executive told Mint.
“We did see that earlier during the financial crisis and now during this ongoing pandemic, the demand for pre-owned luxury cars has grown much faster," Vikram Pawah, president, BMW Group India said.
He was talking on the sidelines of the BMW 2 Series Gran Coupe launch on Thursday. The new 2 Series, which was launched in the price range of ₹39.30 lakh to ₹41.40 lakh, aims to tap demand from the younger buyers while capitalizing on the festive momentum.
For luxury carmakers, pre-owned segment is a strategic opportunity to add first time or new customers into their brand umbrella.
“Pre-owned cars are very strategic to our operations within the BMW Group. We have always believed that the customers who want to experience the brand but cannot go and buy a new BMW car select pre-owned luxury cars. And that’s why we have BMW Premium Selection, where we sell certified pre-owned BMW cars," Pahwa said, adding that the purchase experience under the said program is equivalent to the new car purchase at BMW dealerships.
Pahwa said that pre-owned car business is a strong part of BMW India’s operation and a clear vertical at its dealerships.
Pointing to the shortage in the supply of pre-owned BMW cars currently; Pahwa said the surge in demand for such cars also helps the entire ecosystem.
“Good demand for used cars with supply shortage leads to an increase in the resale value of the cars automatically. When the resale value of the existing cars grow, the customers get more equity in return and they start looking at trading their cars for more premium models," the senior BMW executive said.
The company’s financing arm, BMW Financial Services offers loans to such customers trading their existing BMW cars with new models.
“We have a program called key-to-key at BMW Financial Services wherein a customer with existing loan can hand over the keys of his / her existing car and buy a new car without any further approvals, and can just get the loan roll over the next car," he said, adding that there are existing customers reaching out for new car exchange programs.
The company said it is witnessing a sequential recovery in enquiries, sales and service activities from July. Backed by new product launches and preference for personal mobility, Pahwa expects a strong recovery during this year’s festive season.
“In Australia, when we managed to flatten the curve, we saw a big bounce back in the demand for luxury cars," he said, adding that India will see a similar pattern in the coming months.