Monday, September 26, 2011
By Pranjal Gera
Used diesel cars demand rises in India
The value for used diesel cars is appreciating with time, and the prices have gone up nearly 12% in the past six months. The difference between prices of petrol and diesel has widened more than ever. The difference has now more than Rs. 25 a litre. This has increased the demand for diesel cars- both new and used.
India's used cars market, which is 1.1 times than the new car market. The used cars sold in the country, at an average are 2.5 million cars per annum, with a growth rate of 15-20% per year. While most of the used-car deals are made directly between the buyers and the sellers, brokers account for 30% of the used cars sold in the country. Whereas, the organised sector accumulates to about 12% of the used car market.
During the past few months, the prices of second hand cars like Maruti Swift, Maruti Swift Dzire, Ford Fiesta and Mahindra Verito Diesel versions, have increased by 10% to 15% in the market. However, the prices of second hand petrol cars have fallen down by about 20%. The most affected cars are Honda Civic, Hyundai Sonata, Mitsubishi Outlander and Honda CRV.
According to experts the low supply of diesel cars is also making the prices go up. With around 18 percent interest rates for used cars, they have been stable, whereas for new cars, the interest rates have increased by 3 to 4 percent.
The used car dealers are looking forward to stocking more diesel cars than before. The used cars market is also, however, facing a slowdown in growth rate, with a substantial fall of around 20%.