Gurgaon-headquartered used-car retailing platform Spinny has released its year-end report which highlights that 48 percent of its customers took a completely digital route in 2022. Thus, showcasing the growing appetite amongst Indian consumer to trust and make high-ticket purchases completely online.
The company says with the growing economy and steady growth in disposable incomes, it has reported a sizable growth in demand for used cars, especially from metropolitan cities. According to the data analysed, it witnessed a 60 percent increase in first-time car buyers across India in 2022 as compared to 57 percent in 2021.
While it is difficult to estimate the size of the used-car market in India, given the fragmented and unorganised sector. But as per Spinny it is estimated to be around $23 billion (Rs 189,681 crore) in FY2022 and is projected to grow double the rate, at a CAGR of 19.5% till FY 2026-2027.
In 2022, the used-car platform saw the maximum demand for used cars from Bengaluru, followed by Delhi-NCR and Hyderabad. In addition, women buyers made up for 32 percent of customers versus 28 percent last year.
Maruti, Hyundai, Tata top brands in used-car segment
When it came to online purchases, Bengaluru with 68 percent, followed by Delhi NCR with 63 percent and Hyderabad with 62 percent were the top three cities.
Similar to the new car market, Maruti Suzuki India, Hyundai Motor India and Tata Motors were the top OEMs on the used car platform. In terms of models, the Hyundai Grand i10, Hyundai Elite i20, Renault Kwid and Ford Ecosport were the top 4 car models. Coming to the colours, white, Silver and grey specifically in that order, take the top favourite spots among Spinny buyers.
Furthermore, data from Spinny found that 64 percent of corporate professionals bought used cars in 2022. Among model categories, hatchbacks remained the most preferred option for buyers, followed by sedans and SUVs. While Delhi NCR and Mumbai car buyers preferred white, silver and grey colour cars, in Bangalore and Chennai, red cars saw a great uptick, along with the white and grey as preferences.
Niraj Singh, Founder & CEO, Spinny said: “The market for used cars is growing at a steady rate and this marked shift in customer behaviour can be sizably attributed to the trust customers have in Spinny’s offerings and services.”
In terms of monthly performance, Spinny saw major sales in December followed by October, August and May. Moreover, 85 percent of Spinny buyers opted for home deliveries and home test drives.
Till date, the company has a cumulative base of over 2 lakh customers, operating more than 57 car hubs, including Spinny Max and Spinny Park experiential spaces across the country with a total parking capacity of over 10,000 cars. The growth rate in Q4 was 1.5x that of Q3.
During the festive season the company Spinny platform saw a spike in demand with 307 cars sold on the first day of Navaratri, followed by 204 on the tenth day (Dussehra).
