Zooming Ahead

BlackBook evaluates the burgeoning pre-owned luxury car market, once an ignored sector but now miles ahead of new cars in the sales race

- Dhiram Shah

For the last couple of years, the luxury car market in India has been growing steadily, posting record sales figures every year. In 2017, high-end car manufacturers sold close to 40,000 new premium cars in India, which helped the country’s luxury car market jump to the 27th rank in the global index, from 48th position in 2007.

Counting the laps

The market for pre-owned luxury cars in India grew at double the rate in the same period. The sales of used premium cars was up by nearly 30 per cent in 2017. That’s about a tenfold increase in the previous decade. For every new luxury car sold in India in 2017, two pre-owned premium cars changed hands. The tremendous growth has taken the Indian market closer to its more mature, evolved global counterparts. In countries like the UK, Germany and the US, pre-owned premium cars outsell new cars by 2.2 times, and India has almost caught up with global market trends.

New drivers

The factors promoting growth are several. One of the biggest reasons is the ever-increasing purchasing power of the country’s service class. The rise in disposable income has led to an increase in customers who aspire to own a luxury car, which has also extended to the preowned luxury car segment, says Rahil Ansari, Head, Audi India. “Pre-owned luxury cars are an excellent option for first-time buyers to enter the luxury segment and own a luxury brand.” A more aware clientele has helped the market evolve phenomenally. A bigger used luxury car market offers more options to the buyers, allowing them to choose a range of cars at affordable price tags.