Used luxury car demand outpaces supply

OLX Autos, one of the country’s leading players in the pre-owned automobile segment, has reported a sharp increase in the demand for luxury cars on its platform in the first half of 2022. The company also reported a similar increase in the supply of luxury cars as well. As per a study by OLX Autos and CRISIL, the pre-owned car market is growing at a rate of 15 per cent in terms of CAGR. In comparison, the growth rate for the new car market is 10 per cent. If this growth pattern continues, the used car volumes will be 1.5 times more than the new car market by FY 2026.

To arrive at these findings, OLX Autos analyzed over 50,000 listings on its platform of luxury car brands across more than 50 cities in India. These included Tier 1 cities – Bengaluru, Chennai, Delhi NCR, Mumbai Hyderabad, Kolkata, Pune and Ahmedabad. It also included Tier 2 cities – Agra, Amritsar, Coimbatore, Chandigarh, Indore, Jaipur, Kochi, Kozhikode and more. 

OLX Autos undertook the analysis for the first six months, i.e. January to June of 2021 and 2022. The most popular luxury car brands on OLX Autos include Audi, Mercedes-Benz, BMW, Porsche & Jaguar. 

Below are the findings from OLX Autos analysis – 

YoY Supply Growth For Luxury Cars In Tier 2 Cities > Tier 1 Cities

Compared to H1 2022, OLX Autos registered luxury cars’ supply growth of 40 per cent in Tier 1 cities. At the same time, Tier 2 cities recorded a growth of 45 per cent. 

Jaguar led the supply growth in Tier 1 cities with 86 per cent. Meanwhile, Porsche came in second place with 85.5 per cent. Trailing behind these two were Mercedes, Audi and BMW with 40 per cent, 38 per cent and 34 per cent growth. Meanwhile, in Tier 2 cities, Porsche led the supply growth with 138 per cent, followed by Jaguar with 47 per cent. Mercedes, Audi & BMW saw a supply growth increase of 46 per cent, 44 per cent and 38 per cent.

BMW Continues To Be The Most Popular In Terms Of Demand

When it comes to overall volumes in Tier 1 and Tier 2 cities, BMW continues to be in demand. It is also the most popular pre-owned luxury car brand. BMW is followed closely by Mercedes Benz, Audi, Jaguar and Porsche. 

On a YoY basis, demand growth was led by ultra-luxury brands across Tier 1 and Tier 2 cities. In Tier 1 cities, Porsche led with 21 per cent. It was followed by Audi with 11 per cent, BMW with 9 per cent and Mercedes Benz with 5 per cent. With 17 per cent, Porsche also led the demand in Tier 2 cities. It was followed by Audi with 11 per cent, Jaguar with 8 per cent, BMW with 5 per cent and Mercedes Benz with 0.5 per cent. 

Price Increase For Pre-Owned Luxury Cars In Tier 1 Cities > Tier 2 Cities

Compared to H1 2021, H1 2022 also saw an increase in average listing prices for luxury cars in Tier 1 cities. The prices for Mercedes Benz went up by 25 per cent, Porsche by 13 per cent, BMW by 11 per cent, Audi by 6 per cent and Jaguar by 2.6 per cent. 

In Tier 2 cities, prices of Mercedes Benz increased by 19 per cent, Audi by 12 per cent and BMW by 16 per cent. On the other hand, the prices of Porsche and Jaguar fell by 18 per cent and 8 per cent, respectively.

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