Owning a personal car is an aspiration for many who commute daily for work or otherwise. The options available to buy a car have made it possible for a common person to own a personal vehicle. According to a latest report, more Indians preferred getting their cars financed in 2022 even as the average budget increased by 30%.
The India Mileage report 2022 report by CARS24 added that more millennials shopped for cars in 2022, majority buyers are under 35 years. This trend highlights that young customers are driving the sector and options of car finance in the form of EMI have seen a wider acceptance.
At the same time, people are willing to spend a higher amount on cars without compromising on their choices, safety or quality.
According to the data shared by CARS24, maximum cars were financed for users in cities like Hyderabad, Lucknow and Kolkata.
The highest loan was taken for INR 25 lakh by a user in Delhi.
While financing, Indians preferred the tenure of six years as it gives more flexibility to pay and decreases the payment burden. The average EMI amount in 2022 was Rs 11500 and the majority of loans were taken by salaried professionals.
The Covid-19 pandemic compelled many people to avoid public transport and a preference for a personal vehicle has seen a rising trend in the last couple of years.
Not just financing options, the Indian consumer behaviour of ‘Kitna deti hai’ (A query about the mileage) remains the top criteria for the car buyer.
The report added that in 2022 as well, Maruti continued leading the race for the most popular car brand in India with every 1 in 3 buyers purchasing a Maruti car in 2022.
The maximum Maruti cars were bought in New Delhi, Mumbai, Bangalore and Hyderabad followed by Kolkata, Lucknow, Pune and Ahmedabad.
Maruti was followed by Hyundai, Honda and Renault and Ford however, the sale of younger brands such as Kia picked up in the last quarter of the year.
The last quarter of the year, especially, saw a growth in demand for used cars, highlighted in the report. CARS24 claimed that it recorded a 75% jump in the sale of pre-owned cars in the Oct-Dec quarter (Q4) from Jan-March quarter (Q1).
Meanwhile, for the first time, India surpassed Japan in auto sales last year and became third largest auto market in the world. The country’s sales of new vehicles totaled at least 4.25 million units, topping the 4.2 million sold in Japan.
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