An insight into the future of the auto industry and the functioning of the consumer mind
By Jatin Ahuja, Industry Expert & Founder, Big Boy Toyz
Over the years the pre-owned auto market has seen a steady increase in the sales due to the ever increasing consumer base and demand. Keeping in mind, the recent situation where-in due to the lockdown phase for COVID 19, the economy has been bruised and the purchasing power of people have taken a hit, mindful purchasing by consumers will gain maximum momentum. Post the lockdown consumers will focus more on purchasing of products (high end and retail) based on need and not on want or desire.
Hygiene and need based mindful purchasing will also drive the Millenials, who were comfortable till now opting for public transport, to look at private & personal mobility in new light. Thus the decision to opt for a pre-owned car at a reasonable price giving the same mileage and service as almost a new car will be more attractive as the budget has definitely taken a hit during these challenging economic times.
An upsurge of enquiry for pre-owned vehicles mainly utility and luxury utility vehicles has been noticed as more and more people are option go for e-booking their vehicles from platforms like Big Boy Toyz, which have already made a business of 8-10 crore during the lockdown phase.
Even though the market is dependent on strong supply chain activity even manufacturers around the world have realised it is time to look into the pre-owned section more closely as the stigma around pre-owned cars are changing and in the wake of things people are purchasing products (high end) which will bring them maximum value for money.
Research has shown that consumers, who were in the beginning of the year willing to purchase new cars, are gradually opted for pre-owned vehicles due to budget cuts and also because pre-owned cars are value for money. This in itself has given an overall boost to the pre-owned auto industry thus highlighting that this sector will be closing the FY 20-21 on a positive note.
It is true that usually with new cars people have the tendency of treating them as assets and thus prefer using public transport, but due to the current scenario when hygiene concerns are at its peak and right precautions can save you from a fatal disease, people are choosing to purchase things that they can use without feeling guilty of over using a completely brand new expensive product.
However, even while purchasing pre-owned cars consumers have to be well aware of the quality of the vehicle they are purchasing, thus it will always be advisable if they can purchase from an authentic outlet with decade long presence in the country.
