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- toyota corolla altis
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Are Used Car Prices Rising Faster Than New Car Prices To Indicate Volatility?
- by Bhushan Mhapralkar
- July 22, 2024
As more and more people look at used cars in the wake of the exorbitant new car prices, the prices of used cars in India seem to exceed in speed than the period rise in new car prices. This is despite the fact that interest rates on funding availed for used cars is often much higher than what is availed for new cars.
Despite the used car interest rates above 12-13 percent as compared to new car interest rates, which are in the region of six to seven percent, many used car buyers of vehicle that are less than four years of age are opting for finance as they find these vehicles of better value, mentioned an industry source.
They seem to be less deterred by the fact that used car prices are rising faster than the new car prices owing to the fact that there is more demand than supply in the case of some of the fast-moving models, he added
With the festive season a month or two away, automakers are busy working on new, exciting cars and SUVs. They are unveiling them in the run up to a commercial launch around Dusshera.
Another round of price hike is expected at that time in the case of new cars, the source claimed. It is usually the third quarter when the automotive market experiences good traction, he informed.
On the used car front, monsoon is a dull season followed by an exciting festive season. What is however surprising is the amount of price movement in the used car market in the monsoon season. There is a good deal of volatility in the used car market, mentioned an owner of a used car showroom in Mumbai.
Good cars bought just before Covid-19 or after it are starting to visit the used car market but their supply – that of some models – is far less than the demand. This is leading to higher asking rates for them at used car outlets. The ripple effect is, cars in the same segments or even others see a demand and hence a price increase as buyers turn their attention to them, he explained.
If the Volkswagen Polo GT TSI is maintaining its price in the used car market closer to the new car price, consider the 2019 petrol Polo on sale at a used car dealership in central region of Mumbai. At a dealer with good capital investment and years of experience in this business, albeit at the unorganised end of the market, the respective car with about 39,000 km on the odometer is priced at INR 550,000.
A 2019 petrol Polo with the same colour and the same trim level is priced at INR 500,000 with a used car dealer in Than. It is run 27,000 km and is also a first owner vehicle.
The trend indicates market volatility and also highlights the unorganised nature of the used car market. Prices here are subject to what is available in the market in what quantities and how or what kind of demand there is for those models in the market.
In the last few weeks, I have observed that the used car market has steadily move up in terms of the prices of cars it sells. It seems to rise faster than the prices of new cars are rising at this moment in time.
For those who seek their first set of wheels are keen to polish their driving skills, there are hardly any cars that cost less than INR 100,000. Those that are available are either third or fourth owner ones. They come across as either abused or on an extended lease of life post the fifteen-year period. In Delhi NCR, the rule that petrol cars of more than 15 years of age and diesel cars of more than 10 years of age cannot ply in the respective region means used car prices are higher. The balancing bit is the total car parc in that region.
Citing the example of a first owner 2009 Toyota Corolla Altis with about 120,000 km on the odometer priced at roughly INR 160,000 with a dealer in a Mumbai suburb, a source aware of how the automotive market functions, showed the same being advertised by another used car dealer in the same suburb at INR 225,000! How can a price rise of the same car rise like this in a week’s time? he questioned.
Terming such developments and the high prices quoted by organised players such as CARS24 or Spinny for the cars that offer an indication of demand outpacing supply, the source mentioned that there is an amount of volatility in the market and it would serve to look for a good car, get it checked thoroughly and exercise a lot of patience to get a good deal.
Referring to reports by some organised players in the used car market stating that the first quarter of the current fiscal has seen good traction as salaried professionals in bigger and smaller cities turn to used cars after getting a bonus or an increment, the source averred that they ought to be careful when making such a purchase.
A limited information about a car on the used car market or the lack of transparency of the dealer offering it, are some the big risks involved, he quipped. Irrespective of whether the used car outlet belongs to an organised player or is a stand-alone unorganised enterprise, the risk of buying a used car pertains to the credibility of such a business, how sincere the dealer is in stating information about the car, its papers and service history. In the case of high value purchases, many buyers are known to arrange for a check-up with the dealership to get a good idea about the ‘real’ condition of the vehicle at a certain fee.
But at the lower price band of the used car market, such a facility is often not available. While entities like Zekardo offer new car inspection and report in view of the investment being made, there is none who could di the same in the used car market.
With prices moving up smartly – a 2006 WagonR of good condition is priced at INR 140,000 by a dealer in Mumbai – in the used car market in India even for cars that are over 15 years old and leading their first, second or even third ‘green tax extension, the market does look to be quite volatile and overpriced.
On the occasion of Onam festival, Renault India Private Limited (RIPL) has announced festive offers in the form of discounts and benefits of up to INR 75,000 on its range of vehicles sold in the state of Kerala. It has also announced additional loyalty benefits for its vehicle buyers in the respective state.
The RIPL dealership in Kerala has achieved a rear feat of delivering a total of 200 vehicles in a day during the festival period, which is 20 August 2023 to 31 August 2023. The Onam festival offers from the company are applicable till 31 August 2023.
Sudhir Malhotra, Vice President – Sales & Marketing, Renault India Private Limited (RIPL), said, "Onam is a festival that resonates with the spirit of togetherness and celebration. At Renault, we believe in becoming an integral part of our customers' joyful moments. The remarkable achievement of our dealer, who delivered 200 vehicles in a single day, is a testament to our brand's strength and our commitment to providing exceptional experiences to our customers. With our special festive offers, we aim to add more delight to this festive season and bring our customers closer to their dream of owning a Renault vehicle.”
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Mahindra & Mahindra Ltd has launched yet another compact SUV called the XUV 3XO. Conceptualised at the Mahindra India Design Studio (MIDS) in Mumbai and engineered (and developed) at the Mahindra Research Valley (MRV) near Chennai, the new vehicle combines standout design, premium interiors, comfortable ride, cutting-edge technology, thrilling performance and unmatched safety.
With the base model priced at INR 749,000 ex-showroom, the XUV 3XO is made at the company’s facility in Nashik with the use of advanced manufacturing processes to ensure a high-quality job. To commence deliveries from 26 May 2024, the vehicle is fitted with 17-inch wheels. It has a water wading depth of 350 mm.
Laced with 35 standard safety features including six airbags, ESC with Hill Hold Control (HHC) and disc brakes on all four wheels, the XUV 3XO is built to meet the highest B-NCAP safety rating. Powered by a 1.2-litre TDGI (turbo-petrol) engine that does 230 Nm torque and a 1.5-litre turbo-diesel engine that does 300 Nm, the compact SUV is offered with a 6-speed auto transmission.
Capable of accelerating from 0 to 60 kmph in 4.5 seconds on the turbo-petrol model, the XUV 3XO is equipped with a multi-tuned valve concentric land technology (MTV-CL). This technology – being offered by OE suspension parts suppliers Monroe and Tennaco – enables a uniquely broad range of tuning options in terms of vehicles dynamics.
The MTV-CL technology helps to enhance damper performance by providing a more precisely defined blend of ride, handling and NVH. The XUV 3XO is the second vehicle to get this technology after the Scorpio N.
Fitted with a MacPherson strut fully independent front suspension and a twist beam semi-independent rear suspension, the compact SUV is quite refined and spacious for its size.
Claimed to have the best-in-class wheelbase, occupant space and legroom, the compact SUV offers 364-litre boot space at the rear. This could be further enhanced by folding both or either of the 60:40 rear seat.
Available with first-in-the-segment ‘Skyroof’, dual zone climate control and 65-watt USB-C charging, as per the company sources, the XUV 3XO comes with an electronic parking brake (with auto hold), three smart steering modes, Level 2 ADAS and Twin HD Screens – a 26.03 cm screen for infotainment and a 26.03 cm screen for instrumentation. In terms of convenience, there’s wireless Android Auto and Apple Carplay, and built-in Alexa. The Harman Kardon premium audio system consists of an amplifier and sub-woofer. There’s 360-degree surround view system with blind view monitor too.
Speaking at the launch of the XUV 3XO, Veejay Nakra, President – Automotive Division, Mahindra & Mahindra Ltd, said, "With the launch of the XUV 3XO, starting at an attractive price of INR 749,000, Mahindra is redefining what an SUV can be. Engineered to deliver 'Everything you want and more,' the XUV 3XO is designed to cater to a broad spectrum of customers. From those upgrading from a hatchback to their first SUV to luxury seekers looking for high-end features at a competitive price, the XUV 3XO offers a unique blend of innovation, safety, comfort, and performance. Each variant is a strategic response to the nuanced needs of different customer segments, effectively making each variant a disruptor in its segment."
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- Swapnil Jain
- Bajaj Auto
- Ola Electric
- Ashok Leyland
Mazda CX-30 And Five Other Models Get Top Safety Pick+ Ratings
- by 0
- June 12, 2020
The IIHS evaluates a variety of crashworthiness tests including driver-side and passenger-side small overlap and moderate overlap frontal crashes, a side crash, a roof strength test and a head restraint and seat test that simulates a rear impact. In addition, headlight performance and frontal crash prevention by means of auto-braking and forward collision warning systems are evaluated.
For the Mazda CX-30, its strong Top Safety Pick rating in the US tests adds to a series of impressive global safety assessment results. In Europe, the CX-30 achieved a maximum five-star rating by Euro NCAP, while the Australian New Car Assessment Programme (ANCAP) also awarded Mazda’s new SUV the maximum five-star rating. Both safety bodies scored Mazda’s newest SUV with an exceptional 99 percent score in the Adult Occupant category - making it the first vehicle to ever achieve this near-perfect score. It also earned maximum points for frontal full-width impact, as well as the maximum for both barrier and pole side impacts.
In the United States, Mazda was the manufacturer who received the most 2020 Top Safety Pick+ awards, a result that is a testament to the company’s overarching safety philosophy focusing on three key factors: the adoption of the very latest Skyactiv-Vehicle Architecture, which features a high-rigidity, impact-absorbing yet lightweight body shell; a wide range of advanced i-Activsense safety technologies which help drivers identify potential risks and reduce the likelihood of damage or injury; and high standards of pedestrian protection performance.
The Mazda CX-30’s active and passive safety performance, is complemented by its driver-focused dynamics that deliver linear, responsive and predictable acceleration, braking, handling, and steering. Involving, safe, comfortable and refined, the car’s advanced safety technologies reduce the potential for accidents without compromising Mazda’s traditional fun-to-drive character.
In addition to its 99 percent Adult Occupant score, the CX-30’s Euro NCAP performance included Child Occupant score of 86 percent, full marks in Child Restraint System installation checks and for child protection in the lateral impact test. Vulnerable Road User (pedestrian safety) tests achieved a score of 80 percent, with maximum points for pedestrian leg and pelvis area protection. A score of 77 percent in the Safety Assist category recognizes the efficiency of the new Mazda CX-30’s comprehensive suite of i-Activsense safety features. Michiel van Ratingen, Secretary-General of Euro NCAP, said, “Congratulations to Mazda for another almost-perfect score in adult occupant safety”.
Revealed at the Geneva Motor Show in 2019, the Mazda CX-30 enters a new market segment for Mazda, slotting into the company’s award-winning SUV range below the larger CX-5. The second model in the company’s next generation line-up, like the Mazda3, it features Skyactiv-X spark-controlled compression ignition engine. Combining the bold stance of an SUV with the sleek profile of a coupe, its styling is a sophisticated evolution of Mazda’s KODO design philosophy, while it’s spacious and versatile cabin ensures it has the practicality and comfort demanded by customers in this popular sector. (MT)
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Hyundai Motor India is all set to add a new member to its SUV family as it recently unveiled the official images of the Alcazar. According to the Korean manufacturer, this new three-row SUV will be a natural upgrade for Creta owners. Going by its name, Alcazar, which means castle or fortress in Spanish, is set to offer plush comfort lavishly. No doubt the Creta continues to be the best-selling SUV in its segment, but Hyundai feels the Alcazar will add more versatility and flexibility by offering a 6- or 7-seater SUV in the lap of luxury.
At the unveiling of the Alcazar, S S Kim, MD & CEO, Hyundai Motor India Ltd, said, “With a deep-rooted understanding of our customer’s aspirations, our R&D centre has invested countless man-hours to ensure every aspect of Hyundai Alcazar exudes magnificence. And combined with our premium and superior manufacturing capabilities and rich heritage of ‘Make in India’, we have crafted the perfect masterpiece of grandeur. Hyundai Alcazar is well set to enter a new segment, marking Hyundai’s genesis into uncharted territories. With bold new moves, we are on a conquest of redefining benchmarks to exceed the aspirations of our customers.”
Even though the Alcazar’s based on the Creta, it gets a 2,760 mm wheelbase, which is 150 mm longer, and this additional space allows it to accommodate the third row. As a matter of fact, the Alcazar boasts of having the longest wheelbase in the segment beating the Mahindra XUV500, MG Hector Plus and the Tata Safari.
At a glance, there’s no getting away from the fact that the Alcazar looks like a stretched Creta, but once you take a closer look, there’s a lot more than meets the eye. The first thing that will catch your attention is the new chrome-studded front grille. The lower part of the grille, which also houses the number plate, gets a thick silver-finish rim that runs all the way to the headlamp cluster splitting the LED headlights and the DRLs. The front bumper is slightly tweaked from the Creta and sports a new set of fog lamps. With faux skid plates in front and rear, the Alcazar does try to flex its SUV image. As the Alcazar is 6- or a 7-seater, it has a massive quarter glass for the third-row passengers.
Coming to the side silhouette, Alcazar’s extended length becomes quite evident with its longer rear overhang. Hyundai has given the new SUV quite a muscular stance with bulging wheel arches and deeply etched bodylines starting from the headlight across the doors and ending at the rear lamps. For practical purposes, it also comes with a side step for making entering and exiting the cabin easier for the passengers. Apart from this, the Alcazar gets a new set of dual-tone 18-inch alloy wheels like the Safari and the XUV500, but bigger than Hector Plus and the Creta.
The Alcazar’s rear profile is completely different from the Creta as it sports a clean and simple design with wrap-around elongated C-shaped taillights.
Even though Hyundai hasn’t revealed much about the Alcazar’s cabin, the second row will either come with Captain seats with floor-mounted armrest, a first in the segment, or a three-seater bench. Both the seats can slide forward or back for additional space. The third row, on the other hand, comes with 50:50 split seats that can be completely folded to make more boot space. With the third row up, the Alcazar offers a decent space of 180 litres, which is again more than Hector Plus, Safari and the XUV500. The third-row passengers will also get dedicated air conditioner vents. Expect the Alcazar to retain all the features from the Creta like a 10.25-inch touchscreen unit, Bose music system, ventilated front seats, Blue Link car connectivity, panoramic sunroof, wireless phone charger and much more.
The Alcazar will be powered by a 2-litre petrol engine like the Elantra and the Tucson and the tried-and-tested 1.5-litre diesel, which is seen in the Creta. The petrol motor will churn out 157 bhp and 192 Nm of torque. It gets an additional 7 bhp more than the Elantra and Tucson. The diesel variant, on the other hand, produces 113 bhp and 250 Nm of torque. Both the powertrains will be mated to either a 6-speed manual or a 6-speed torque converter automatic transmission. The Alcazar will also boast of multiple drive mode selection—Eco, City and Sport.
After a span of two decades in India, Hyundai has managed to sell over one million ‘Made in India’ SUVs in both domestic and export markets, which began with the Tucson, Santa Fe, Terracan and now the torch has been passed on to the Creta and the Venue. No doubt the new Alcazar will further strengthen the Korean manufacturer’s position in the SUV market. (MT)
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