The condition of used car companies is bad, why people of India do not want to buy old cars

Companies that deal in used cars have started focusing on the cities from where they were buying the cars. The focus has completely ended on those cities where it was selling cars.

The condition of companies that deal in used cars or second hand cars is getting worse. Because of which major companies have not only started winding up their businesses, but have also started reducing the workforce. The speed in the sales of cars is not being seen which was being seen in the last two to three years. Be it Spinney or Cars24 and CarDekho, the situation is similar. It is becoming very difficult for these companies to make profit. Because of which such companies are holding their expand program or are exiting this business segment.

Profit disappearing from the ledger of companies

Profits from ledgers of companies like Spinney, Cars24 and CarDekho are continuously disappearing. According to the information, Cars24 has started focusing on the cities from where it was buying the cars. The focus has completely ended on those cities where it was selling cars. On the other hand, Spinney has also stopped going towards the new market. The focus has been on our existing cities only.

The condition of CarDekho is being told even worse. The company has pulled out of the retail business of used cars in January and February itself. According to the company, it is not getting to see any kind of profit in the coming days. At present, Spinney is selling around 6500 cars and Cars24 is selling more than 5 thousand cars in a month. These figures are being seen stable for the last 6 months.

Sale of new cars is happening at record level

On the other hand, for the last few months, there is a continuous increase in the sales of new vehicles. According to the figures of SIAM, a sales record of 40 lakh new passenger vehicles has been seen in the last financial year. This figure has been seen among the people due to the growing craze for SUVs. There was a huge shortage in semiconductor in Kovid Era.

Due to which the production of new vehicles was reduced. This was the reason that the launching of new vehicles was also being postponed. During that time people have turned towards used cars and the market of used cars has become huge. But now the supply of new vehicles has increased and the availability of old cars has also increased in the market, but the trend of people has now shifted towards new vehicles.