1 / 112023's Auto Trends: In 2023, the Indian car market witnessed a transformative shift. Millennials and Gen Z emerged as key drivers of this change, not only buying but also upgrading their vehicles. This trend, coupled with a growing interest in eco-conscious driving and automatic cars, reshaped the industry. The year also saw a rise in demand for premium features and a significant increase in car financing.
2 / 11Youth Drives Change: In 2023, millennials and Gen Z made a significant impact on the car market. Not only did they buy cars, but they also upgraded their vehicles, bringing a wave of younger, premium used cars into the market. This helped to address the demand-supply gap effectively. For every ten new cars sold, fifteen used cars entered the market, according to CARS24 data.
3 / 11Eco-Driving Takes Off: There was a remarkable increase in interest in eco-conscious driving in 2023. Enquiries for Electric Vehicles (EVs) surged 5X on the platform, indicating a shift towards alternative fuel options. Company-fitted CNG cars also saw a 2.6X increase in demand, particularly in metro cities like Delhi, Mumbai, Bengaluru, and Chennai.
4 / 11Automatic - The New Normal: The year 2023 marked a shift towards automatic cars, particularly among individuals aged 30 and above. The convenience of automatic transmissions appealed to this age group, leading to a 77% increase in the sale of automatic cars compared to 2022. Popular models included Honda City, Celerio, Kwid, Baleno, Nexon, and Creta.
5 / 11Premium Features, Premium Experience: Car buyers in 2023 showed a preference for cars equipped with premium features. There was an increased demand for turbocharged engines and safety features like multiple airbags, anti-lock braking systems (ABS), and electronic stability control (ESC). Advanced technologies like the 360-degree camera and sunroof also gained popularity. The average buying budget increased by 30% since 2021, indicating a willingness to invest in quality and premium driving experiences.
6 / 11Maruti Reigns, Kia Rises: Maruti Suzuki continued to be a driving force in the Indian automobile market in 2023, with models like the Swift, WagonR, Alto, and Baleno remaining popular. However, Kia made significant strides, with a 64% increase in sales. The most sought-after Kia cars were the Kia Sonet and Seltos.
7 / 11Youth Fuels Market: In 2023, millennials in India shifted towards online car shopping, spending about 3 hours on research before finalising a car. They embraced a shorter ownership cycle, selling cars within 5-6 years, compared to the traditional decade-long norm. This trend reshaped the used car industry, creating a balanced marketplace for both sellers and buyers.
8 / 11Financing Finds Favor: Indians increasingly turned to car financing in 2023, transforming the landscape of car ownership. Cities like Ahmedabad, Hyderabad, Coimbatore, and Rajkot witnessed a significant shift. Delhi-NCR emerged as the hotspot for the maximum loans on used cars, with Surat leading in loan applications. The average EMI on pre-loved cars was ₹11,387.
9 / 11Loan Landscape: The financial spectrum varied, with the highest loan of ₹21 lakhs secured by a customer in Noida, and the smallest loan of ₹92,000 granted to a user in Karnal, Haryana. Tier III cities like Ludhiana, Nashik, and Rohtak experienced a surge in loan disbursements. CARS24 claims to have processed around 411 loan applications daily, with a peak of over 300 disbursals on a single day.
10 / 11Wealth on Wheels: Every month, around ₹502 crores’ worth of used cars hit the market, thanks to savvy Indians turning their vehicles into cash. The ratio of new cars to used cars in 2023 was 1:1.5. According to CARS24, the most-sold car brand was Maruti, with the Swift being the most-sold model.
11 / 11Sales Snapshot: The maximum number of cars were sold from New Delhi in metros and Lucknow, Jaipur, Surat, Kochi, and Patna in non-metros. The cheapest car sold was a Maruti Zen for ₹6,000 in Amreli, while a CARS24 customer in Mumbai made ₹1,38,00,000 by selling their Mercedes Benz S Class. Most deals were closed within minutes of car inspection, with Saturday being the most popular day for customers selling their cars.
