The demand for SUVs has shown a shift toward practical and affordable models. Olx India reported increased demand for pre-owned cars during the recent festive season compared to August and September 2024. Budget-friendly models like the Maruti Suzuki Alto 800 and compact SUVs like the Hyundai Creta saw significant demand growth, driven by consumer preferences for affordability and practicality. This trend was observed across Tier 1, Tier 2, and Tier 3 markets.
Surge in budget-friendly car sales
Olx India witnessed a 20% increase in demand for the Maruti Suzuki Alto 800 in Tier 1 markets during the festive season compared to the preceding two months. This surge reflects a growing preference for budget-friendly cars. The platform also saw a 10% growth in demand for the Hyundai Creta in Tier 2 markets, indicating consumer interest in compact SUVs.
The Maruti Suzuki Alto 800's popularity in Tier 1 markets is attributed to consumers prioritising affordability amid economic uncertainty. This focus on budget-friendly options emphasises the need to manage maintenance costs and adapt to potentially challenging financial times.
The demand for SUVs has shown a shift toward practical and affordable models. The Hyundai Creta's 10% demand increase in Tier 2 markets reflects this preference for cost-efficient options within the SUV segment. This demonstrates a move away from larger, more expensive SUVs towards more compact and economical choices.
The Honda City also experienced a 10% growth in demand in Tier 2 markets, highlighting consumer interest in sedans. This suggests that consumers in these markets are seeking practical and affordable options in the sedan segment. The Maruti Suzuki Ertiga saw a 7% rise in demand in Tier 2 markets, reinforcing its popularity as a versatile family vehicle.
Other popular models from leading brands, including the Maruti Suzuki Ertiga, Swift Dzire, and Wagon R, exhibited steady growth across various markets during the August-October 2024 period. This indicates consistent consumer interest in these established models.
The Maruti Suzuki Swift Dzire saw a 5% increase in demand, while the Maruti Suzuki Wagon R recorded a 4% increase, both in Tier 1 markets. These figures demonstrate sustained demand for these models, even amidst the growing popularity of budget-friendly and compact SUV options.
“We’re seeing demand across both budget-friendly models and SUVs this festive season, reflecting consumers preference towards affordability and practicality,” said Siddharth Agrawal, Chief Business Officer - Autos, Olx India. “SUVs like Creta and Ertiga are particularly resonating with buyers seeking a perfect blend of space and value, while economical choices like the Alto 800 continue to lead among budget-conscious consumers. This festive uptick highlights a broader trend where consumers are choosing reliable and compact vehicles that meet both everyday and aspirational needs.”
Tier 3 market demand
In Tier 3 markets, the Maruti Suzuki Ertiga experienced a 4% increase in demand. The Hyundai Creta also saw a 2% growth in these markets, demonstrating continued interest in SUVs, even in smaller cities. These figures suggest that the demand for both practical family vehicles and compact SUVs extends beyond major metropolitan areas.
Olx India's October data indicates its continued position as a popular platform for budget-conscious and SUV-focused buyers. The platform provides a range of pre-owned vehicle options, catering to diverse consumer needs and budgets. This reinforces Olx India's role in facilitating access to affordable and practical vehicles for a wide range of buyers. The platform's data further highlights the prevailing trends in the pre-owned car market, with affordability and practicality driving consumer choices during the festive season.
