‘Small’ is the word in used car market

They may not exactly constitute the 'bourgeoisie' of the city, but that doesn't prevent them from owning a hot new set of four wheelers. Buyers from the middle and lower classes are now fulfilling their dream of owning a car, thanks to the growing used cars segment. And as is the case with buyers of new cars, they also seem to prefer cars costing less than Rs5 lakh a piece.

Dealers across the city, of old and new cars alike, testify that the demand for four-wheelers is on the rise, and that in both the segments, it is the smaller 'family' cars that are ruling the roost. These cars have particularly found demand among the not-so-affluent, something that is being reflected even in the increased demand for used cars in the wake of the festive season.

"Nearly 60% of our business happens in the small car segment. Cars like Maruti Swift, Wagon R, Maruti Alto, Hyundai Santro and Hyundai i10 and i20 are in a great demand these days. Most of our customers are those looking for cars in the lower range, that will suit their pocket," said Hitesh Aswani from Jolly Motors.

Dealers say that most of the customers coming in to buy used cars are those who can't afford buying a new one. They feel that these cars, even if second-hand, will help them fulfil their dream, say dealers.

"The used car segment in Ahmedabad is definitely growing. With the festive season in full bloom, we expect a rise of almost 25% in business during this period, as compared to last year," said a dealer of used cars.

Another dealer of used cars, Raju Desai of CM Motors, said, "Used cars are increasingly in demand, and especially in the small car segment. Almost 85% of our business comes from this segment, with almost 80% being contributed by Maruti models."