Bengaluru Leads the Shift in India’s Automotive Market: A Focus on Pre-Owned Vehicles and Car Financing Trends
The automotive landscape in Bengaluru is undergoing a significant transformation, with a growing number of residents opting for pre-owned vehicles. Spearheaded by CARS24, India’s premier AutoTech company, the city has seen an impressive 87 percent growth in used car sales year on year. This trend reflects Bengaluru’s move towards more affordable and sustainable vehicle ownership options, catering to both budget-conscious and environmentally aware consumers.
Since its launch in Karnataka in 2015, CARS24 has rapidly expanded its presence in Bengaluru and now serves customers in twelve cities across the state. This expansion has established CARS24 as the preferred platform for both automobile enthusiasts and sellers alike, transforming the pre-owned vehicle market in the city. The surge in used car transactions in Bengaluru highlights a practical approach to mobility, where quality, value, and sustainability intersect.
Car financing is also on the rise in Bengaluru, with 47 percent of residents opting for financing on used cars. To make the purchasing process even more convenient, CARS24 has introduced a zero-down payment option, further simplifying the process for buyers. The city has recorded a 102 percent year-on-year increase in cars financed, with salaried professionals being the main group of loan applicants. This trend reflects the increasing accessibility of car ownership through flexible financing options.
Hatchback models continue to reign supreme in Bengaluru, with their versatility, fuel efficiency, and compact design making them the go-to choice for urban dwellers and families. SUVs and Mini SUVs are also in high demand, appealing to those seeking both city-friendly practicality and adventurous spirit. Premium features like airbags, driver’s assist systems, and advanced technologies are becoming must-haves for Bengaluru’s car buyers, indicating a willingness to invest in added comforts and conveniences.
Mileage remains a top concern for car buyers in Bengaluru, reflecting a mature and thoughtful approach to purchasing decisions. Additionally, color trends are shifting towards more expressive hues, with vibrant reds, cool blues, and earthy browns gaining popularity as individuals seek to match their cars to their personal style and vibes.
Overall, Bengaluru’s automotive market is experiencing a dynamic shift, with residents selling cars worth almost INR 140 crores to CARS24 in the first quarter of 2024 alone. This trend of replacing cars within a few years highlights the changing preferences and desires of consumers, creating a vibrant market for platforms like CARS24 that offer convenience, trust, and a streamlined selling process. As Bengaluru continues to lead the way in the pre-owned vehicle market, it sets a precedent for practical, sustainable, and value-driven car ownership in India.