Covid-19 impact: Sales of used cars, bikes may increase, says survey

NEW DELHI: Sales of pre-owned cars and entry-level motorcycles and scooters may increase in the aftermath of the covid-19 pandemic as commuters will likely prefer private conveyance but financial constraints may hamper purchases of new vehicles, according to a survey conducted by Cars 24, a digital platform for buying and selling used cars.

According to the survey, 46% of respondents said the pandemic has reduced their budget for fresh purchases and of that 50% said they will purchase pre-owned cars once the lockdown is over. Also, around 22.5% of respondents who were planning to buy a new car last year would now prefer to buy a pre-owned car because of limited budgets.

The report also noted that 42% of respondents feel that they now need to buy a car, while 53% are thinking of buying one within the next 6 months.

Unlike in metros, where consumers' intention to buy cars rose 41%, participants from non-metro said they would like to switch to two-wheelers. Also, around 55% of consumers who were using cabs to commute before the pandemic would now like to switch to private cars, while 15% said they would switch to two-wheelers.

The survey was conducted through digital platforms and covered over 3,600 consumers in 11 metros and 37 non-metros to assess consumer sentiment for car ownership in the post-pandemic world.

According to Gajendra Jangid, co-founder and chief marketing officer, Cars 24, the pandemic has transformed the way people live. People are more inclined to own a vehicle to commute, having realized the importance of social distancing.

“They are not only limiting their budgets for high-priced assets but are also planning to invest their hard-earned money much more wisely and are keen to buy a pre-owned car instead of a new one. We expect that a fourth of our consumers would like to shift to online car selling and buying platforms in the post-pandemic world,” added Jangid.