Used-car sales boom not threatened by waning pandemic

Trains and buses to taxis are full again as the pandemic wanes, but that hasn’t dampened used car sales.

“The easing of Covid-related restrictions has had a strong positive impact on the demand for used cars,” Ashutosh Pandey, managing director and chief executive of used-car retailer Mahindra First Choice Wheels, told BQ Prime in an email response. .

“As people have started to use public transport and the supply of new cars has dwindled, the demand for used cars has remained strong.”

User demand for cars has increased during the coronavirus pandemic as people prefer personal mobility. And also because fewer people replaced the cars due to restrictions and rising prices after the switch to Bharat VI emission standards. The surge continued, mainly at the request of small towns.

According to Pandey, sales are expected to rise 10-12% to 44 lakh units in the current fiscal year, compared to 15% growth in the fiscal year ending March.

“We’ve seen more than 50% growth in our organic traffic and 75% growth in our customers’ in-store visits to test drive and buy cars,” said Sharad Saxena, CEO of the used car business at CarDekho group. “As a result, during this period our sales increased by more than 50% (compared to the Covid period).”

While first-quarter supply rose 3% sequentially, demand jumped 6%, according to data provided by CarWale.