Renault Kwid Top Choice Among First Time Used Car Buyers
he used car market in India remains buoyant despite rising new car prices, with Spinny, a leading full-stack used car marketplace, reporting significant growth in buyer preferences and trends in its Q3 2024 report. The data reveals a clear shift towards compact SUVs, a resurgence of Honda among top brands, and the continued popularity of the Renault Kwid.
Renault Kwid Secures Top Spot for Third Consecutive Quarter
One of the standout performers is the Renault Kwid, which has solidified its position in the top three most popular car models for the third quarter in a row. Joining the Kwid are the Hyundai Grand i10 and the Maruti Suzuki Wagon R, reflecting Indian consumers’ preference for compact, city-friendly cars. The Kwid’s consistent popularity highlights its affordability and appeal in the used car market.
Honda Climbs Back Among Top Brands
After a brief dip, Honda has made a strong comeback as one of the top three car brands in Spinny’s report. Models such as the Honda City and Amaze have played a crucial role in this resurgence. Honda’s return to the top ranks, alongside stalwarts like Maruti Suzuki and Hyundai, has displaced Tata Motors from the top three for the quarter, indicating shifting consumer preferences in India’s used car segment.
Compact SUVs See 12% Growth
One of the most significant trends this quarter is the continued growth of the compact SUV segment, which saw a 12% increase over the previous quarter. The rising popularity of these versatile vehicles reflects their increasing suitability for both urban and rural Indian landscapes. Their higher seating position, spacious interiors, and modern features make them an attractive choice for families and young professionals alike.
Fuel Preferences and Buyer Demographics
In terms of fuel choices, petrol vehicles remain the dominant choice, with 83% of buyers opting for them. Diesel cars followed at 12%, and CNG vehicles accounted for the remaining 5%. The report also highlighted consumer preferences for colors, with white, grey, and red being the most popular choices.
Spinny’s report indicates a continued rise in first-time car buyers, who now make up 67% of its customer base, reflecting the increasing accessibility of car ownership in India. Women buyers also represented 30% of the total, signaling growing gender diversity in the used car market.
Spinny Insights – June’24 – August’24First-time car-buyers67%Home deliveries18%Hub deliveries82%Online Purchases65%Women buyers 30%Average Age32Top three preferred car brandsMaruti Suzuki, Hyundai, HondaTop three preferred car modelsHyundai Grand i10, Maruti Suzuki Wagon R, Renault Kwid Top three preferred coloursWhite, Grey, RedFuel TypePetrol – 83% | Diesel – 12% | CNG – 5%Car Finance 60% Compact SUVFastest growing category, 12% growth over last quarter
Growing Trust in Car Financing and Digital Purchases
Spinny’s seamless financial offerings have gained increased trust among buyers, with 60% of all purchases being financed through the platform, a 6% rise compared to the previous quarter. Digital transactions are also on the rise, with 65% of buyers opting to purchase cars online, up by 5%, showcasing India’s growing reliance on digital platforms for major purchases.
Additionally, hub deliveries have become the preferred choice for many, with 82% of buyers choosing to collect their vehicles from Spinny Hubs or Spinny Parks, a 7% increase from the last quarter. This trend highlights the appeal of in-person experiences combined with the convenience of online shopping, with 53% of hub deliveries taking place at Spinny Parks, offering test drives and seamless customer service.
Luxury Car Segment Sees Robust Growth
The used luxury car market continues to thrive, especially in urban areas. Delhi, followed by Bengaluru and Mumbai, leads this trend, with young buyers showing an increasing affinity for high-end vehicles. Models like the BMW X1 and Audi A4 remain popular, while the Jeep Compass has also emerged as a top choice in the luxury segment.
Manual Transmissions Gain Popularity
Interestingly, there has been a growing preference for manual transmissions, with 76% of buyers opting for them, a noticeable rise from 70% in the previous quarter. Automatic transmissions have seen a slight decline in preference, dropping from 30% to 24%.
EVs on the Rise
With the rising interest in electric vehicles (EVs), Spinny’s partnership with Tata Motors has brought the Nexon EV and Tiago EV to the forefront in cities like Bengaluru, Mumbai, and Pune. This trend aligns with India’s broader shift towards greener transportation options.
Spinny’s Freedom Days Promotion and Customer Insights
During Spinny’s Freedom Days promotion from August 15 to 18, the platform saw a 15% increase in traffic, with over a million daily users. The top regions for car purchases during this period were Delhi NCR, Bengaluru, and Pune, with the average age of buyers being 36 years, slightly older than the usual average of 32 years.
