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The Indian Blue Book Report 2023 Underlines Good Uptake In Used Car Sales
- by Bhushan Mhapralkar
- May 23, 2024
The Indian Blue Book (IBB) report by Car&Bike and Das WeltAuto (the used car division of Volkswagen) has underlined a significant uptake in used car sales in the country. As per the report, the sale of used cars is expected to reach 10.92 million units by FY2027-28 as the supply of good quality cars that were bought post the covid years starts to grow in the market.
Valued at USD 31.33 billion in FY2022-23 as per the sixth edition of IBB report, the used car market in India is currently witnessing higher demand versus supply in response to the drastic slowdown in new car purchases in the Covid fiscal (FY2020-21).
Expected to more than double to USD 70.48 billion in FY2027-28 as high-quality passenger vehicles bought in the years after the pandemic, the Indian used car market is in for a good show.
Roughly linked to a phenomenon where the slowdown in purchase of new cars leads to a surge in the demand for used cars, the arrival of passenger vehicles no more than 3.5 to five years of age, the used car market in India is expected to experience good momentum. It is also expected to see some formalisation, according to source, but grow nonetheless on the organised side as well as the unorganised side. The organised side of the used car market in the country is currently an estimated 35 percent.
As owners of new cars purchased post the pandemic period decide to upgrade, the buyers of used cars are expected to get to choose from high-quality cars, albeit with records and a higher residual value. Budget buyers looking at quality pre-owned cars on the back of being more informed about car technicalities, the present situation points at an increasing availability of cars that are not just well maintained, but are also replete with a good safety kit among other attributes. An example of such an offering is the Volkswagen Taigun, which has managed to retain 80 percent of its residual value after three years unlike the models sold by the German automaker earlier.
With the make, model and variant turning out to be a big consideration among 71 percent used car buyers, the tendency of buyers to inform themselves well is increasingly witnessed as per the BBI report. Stressing on the fact that majority of buyers are highly budget conscious (63 percent) even as they look for quality cars, the report highlights a pull towards used cars that offer a better safety kit and safety rating. The Volkswagen Taigun for example, is five-star GNCAP rated.
The sixth edition of the BBI – walking the foot steps of the earlier edition – highlights the fact that 71 percent of the used car buyers also acknowledged overall repairs and servicing costs as a big consideration.
About 45 percent of buyers/intenders prefer local dealers for exploring, followed by auto tech start-ups (26 percent) and OEM backed brands (23 percent). In terms of awareness and preferences of car leasing, 28 percent of buyers were found to be aware of the concept. The indication, as per the report, is that 62 percent of used car buyers would avail of the same in the future.
In the case of used car buyers, warranty and financial assistance topped the list of demands as a service. A majority of them – 56 percent of them – did not prefer an EV used car.
From the vehicle seller’s perspective, 59 percent of them reasoned that they wanted to upgrade to a new vehicle as the reason to do away with their existing set of wheels. Some of them reasoned that it was the sufficiency of having another vehicle. The extra cars bought during Covid-19 period are being sold now, the sixth edition of BBI report highlights.
What has been aiding the arrival of high-quality cars that were bought during the post pandemic period is being attributed to the fast tracking of auto technology. Automotive tech startups and OEM backed companies are ensuring that the actual Turn Around Time (TAT) to sell a car is down to three days!
Full payment within 24 hours remains the top priority for sellers followed by vehicle inspection at a location of their choice.
“The pre-owned car market is significantly growing with the potential of it being double by FY2028. The growth primarily comes from the evolving trends and customer preferences while selecting a pre-owned vehicle. A notable shift is the top priority for safety features, a transition similar to the new car industry, enabling a brand like Volkswagen, to be more accessible and in-demand for customers with our 5-star GNCAP rated product portfolio – Taigun and Virtus. The high preference for safety features and standards among customers is positively impacting the residual value of Volkswagen cars, especially the Taigun. We are confident the Das WeltAuto. business, will continue to grow as one of the top certified pre-owned car brands in India for customers,” said Ashish Gupta, Brand Director, Volkswagen Passenger Cars India.
Ashutosh Pandey, CEO & MD, Mahindra First Choice, averred, “The latest edition of the Indian Blue Book, a collaboration with Das WeltAuto. by Volkswagen, reinforces our confidence in the Indian pre-owned car market's explosive growth potential. The increasing involvement of organized players is bringing stability and trust to this market; achieving consistent profitability and providing superlative customer experience remains the top priorities for organised players.”
Mahindra First Choice Wheels-backed Indian Blue Book launched the first edition in 2015 to highlight the trends in the used car industry in India. Since then, the annual report has been established as the largest and most intensive primary research conducted in India. Since 2022 Das WeltAuto., the pre-owned car brand of Volkswagen, and Car&Bike, a 100 percent subsidiary of Mahindra First Choice Wheels, have co-curated this research report.
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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