By Sricharan R, Correspondent, Autocar Professional
Post the pandemic, the need for personal mobility is on the rise. Staying true to this, many OEMs have posted positive sales numbers during the festive season. But it does not just stop there. With the need for private vehicles, the used car market in India is seeing a robust growth trajectory.
According to a recent Frost & Sullivan report, the pre-owned vehicles/car market in India is set to grow by 50 percent in the next three years. The used car market is expected to expand to almost 1.8 times the size of the new car market, doubling to 6 million units by FY2022. And, this applies for the premium pre-owned vehicles too. The Gurgaon-based Big Boy Toyz, a premium pre-owned car company, is expecting the industry to boom even with the current crisis.
Speaking to Autocar Professional, Jatin Ahuja, founder and CEO, Big Boy Toyz, says: "The plan has always been to enhance the concept of making quality cars available for our consumers. Now, digitalisation has emerged as a major player in terms of long-term plans. The pandemic and lockdown have been kind to the pre-owned auto industry in the country. The way forward is to digitally strengthen the business."
The company recently launched a new smartphone app that allows buyers to look through a selection of used cars, book and also make payments through the app.
The new app enables users to have a 360-degree virtual tour of the showroom and also acts as a place that houses all the data about the new car. At present, 75 percent of Big Boy Toyz’ car sales are happening via our digital space. “Our newly launched app also allows the consumers to book their cars by comparing luxury cars across 228 parameters," points out Ahuja.
“The touch and feel of buying a car was important before. Looking at the current situation where consumer safety is of prime importance, this might change. During the pandemic, the pre-owned luxury sector has seen quite a positive consumer response. Since we cater to a niche consumer bracket, and personal mobility has been the major focus, we have already surpassed the growth rate compared to that of the same time last year,” he adds.
According to Ahuja, while buyers from Tier-1 cities may be interested in monetising deals, it is mostly the aspirational buyers from the Tier-2 and 3 cities who are keen on buying used luxury cars for better value for money. “Around 50 percent of pre-owned luxury cars come from Tier- 2 and non-metros,” reveals Ahuja.
Ahuja is hopeful that this demand, coupled with easier accessibility with the new app, will help shore up Big Boy Toyz’ bottomline. “Due to the global crisis, we were initially afraid to achieve the set target. But due to our excellent strategy and farsightedness, we have been able to sell a total of 140 luxury cars since the pandemic. The cars within the price range from Rs 50 lakh to Rs 1.50 crore are seeing the maximum off-take in terms of consumer preference. We are looking at clocking in overall growth and not just a festive season spike. Last year, we closed at Rs 225 crore as annual turnover; we look to close FY2020 at Rs 300 crore," he signs off on a confident note.
Disclaimer: The opinions expressed in this article do not purport to reflect the views or opinions of AU Bank or its employees.