The average ownership period of cars in India has reduced from 61 months in 2002 to 53 months in 2005, according to the survey. Owners are also coming for repeat purchases sooner. This is expected to fuel growth in the market while companies will have to innovate and introduce newer models to sustain excitement around their portfolio.
In a sign of rising affluence and disposable incomes, more households are buying additional cars. According to the survey, out of every 100 cars sold in 2005, 39 were additional (i.e. second or more car) purchases against 28 in 2002.
Whats more, many car buyers are increasing budgets for future purchases. At least 58% respondents indicated a budget of Rs 6 lakh or more for their next upgrade in this years survey against 44% in 2002. Replacement purchases increased from 23% in 2002 to 26% in 2005. Both these indicators highlight the need for car companies to step on sales and customer satisfaction to make customers come back to them.