Hyundai Sees Steady Demand For Pre-Owned Cars | AU Small Finance Bank
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Hyundai sees steady demand for pre-owned cars

    Murali Gopalan, Autocar Professional
     
    The demand for Used cars is increasing in India as the preference for personal transport has seen significant growth given the challenges posed by Covid-19 and the need to maintain social distancing. Preference for personal mobility and competitive used car Financing options are some key driving factors in the significant growth of used car sales.
     
    Hyundai has a strong used car business with a vast network of more than 475 Hyundai H Promise outlets across India that retail pre-owned and certified Hyundai cars. Catering to the current demand of phygital customer connect, H Promise also boasts of a website that allows customers buy/sell used cars along with a H Promise Mobile Application to conduct evaluations. Here is an except of a detailed conversation with Tarun Garg, director, Marketing, Sales and Service, Hyundai Motor India.
     

    Given the recent challenges across rural India, is there a greater trend towards pre-owned cars, entry cars... Is the momentum as buoyant still?

    For the first two months after the first wave of Covid-19 in India, it was mostly about rural India. We saw demand being driven by rural India and after two months, the demand in the urban areas also started picking up. Post the second wave of Covid-19, we are seeing similar trend in urban and rural areas, demand is coming from across the country. What’s interesting this time is, unlike many years when sometimes the crop was good, sometimes the price was good, this time both the price and crop is good and this is driving demand positively in India. As far as Hyundai is concerned, we are getting a far better traction that what we anticipated despite the distress and challenges in rural India.  
     

    Could you specify any significant trend that you see, is there a greater propensity or inclination to buy compact cars, more affordable cars or even pre-owned cars?

    The recent infrastructure push in the rural areas has had a positive impact. We are seeing good demand for SUVs from rural areas as well. Earlier we thought it was primarily prevalent in the urban areas. The necessity of personal mobility is overriding at the moment. Looking at the pre-owned cars segment, the same set of people are not willing to exchange their cars, they now want to buy an additional car. Penetration is not going up. What’s going up is the additional car penetration. People want to give their old cars to their children or other family members as they don’t want them to use the shared mobility options that they were earlier comfortable with. So it means, the demand for pre-owned cars is much higher but at the same time there are some issues on the supply side. Post BS VI and post-Covid, there has been a huge surge in demand for pre-owned cars.
     

    I'm sure you'd like to capitalise on the momentum as used car sellers are quite jubilant about the higher selling price that they can get now?

    Prices have gone up, especially given the limited new car supply.