Thread: Things you did not know about the India car market

Things you did not know about the India car market
1. We are one of the most internet savvy countries – The number of Indian consumers researching online reaches 95 percent in 2011 from 86 percent in 2010.
2. We like new cars, even most fist time buyers will buy new cars – 92% of car buyers intend to buy a new vehicle as opposed to a 2nd hand car, but you probably already knew that.
3. We read the fine print – 91% Indian car buyers say that the service contract influences their purchase decision, this is more than anywhere else in the world

Interesting.

There is a sort of social stigma associated with anything "2nd hand" - be it car, property, furniture, etc. Not so in other countries.

When I was in US, I had a 2nd hand car (actually I was the 4th owner), I had 2nd hand furniture, etc. But in India, the same me wants brand new.

I will just give an example. I live in a decent locality. I live in an apartment complex that is 16 years old. My next door flat is empty and the owners are wanting to sell it. The lady has lost her husband and she has now moved to Dubai with her married daughter. It is a decent 3 bed-room apartment admeasuring 1250 sq. ft. The lady is asking Rs. 90 lakhs but in my opinion will settle for Rs. 80 lakh.

Right next my apartment building is a brand new apartment complex. It is less than 10m away. A typical flat over there is 1650 sq. ft. and the asking price is Rs. 1.93 crore.

Granted that my next door flat does not have 2'x2' glazed ceramic tiles or Jaguar equivalent fittings, or jacuzzi bathtub in the bath room ... but what the hell? One can buy this property for, say Rs. 80L, spend another 20L and it will be just as good. But people do not want to buy a 2nd hand (old) property.