Amongst the extravagance and luxury of Dubai’s towering skyscrapers and exotic cars, lies a stark reality of hundreds of abandoned supercars that make up the abandoned car market in Dubai.
These expensive cars in Dubai, left to gather dust and decay in parking lots and impound yards, serve as a reminder of the consequences of impulsive purchases and financial mismanagement in a city known for its excess.
Supercars like Ferrari, Lamborghinis, Porsches, Bentley’s and many other luxury cars are quite common in the streets of London, Los Angeles, Monaco, Paris, New York, and Dubai.
Another place where thousands of supercars can be seen is in the Airports and different parking areas of the United Arab Emirates, especially in Dubai.
You might feel, what’s wrong in that, well nothing would have been wrong if the cars were there for just a limited time.Those cars are abandoned there, in simple word left there to rot.
The cars that are extremely expensive and some cost over millions of dollars are left there for years. In this article we will talk about why the Supercars are abandoned in Dubai and what happens to those.
Supercars Graveyard in Dubai
No one would have thought that cars that cost millions of dollars would be abandoned every year in Dubai, and not just two or three but thousands of them by their owner. In fact, it’s a common practice there.
This caused a big debate on social media, when someone spotted the picture (below) of a £1 million Ferrari Enzo.
Ferrari Enzo in Supercar Graveyard Dubai
Abdul Majeed Saifaie, the director of Dubai’s Waste Management Department, has shed light on the abandoned car market in Dubai.
He explains that if any cars happen to obstruct other vehicles or congest the roads, they are immediately removed. However, if this is not the case, these vehicles are often left untouched in the same spot for several years.
Contrary to popular belief that these abandoned sports cars in Dubai are by affluent individuals who no longer value their vehicles, the truth is far from it.
Why these Supercars are Abandoned in Dubai
Financial Crisis
People come to Dubai to make their career, however, because of the financial crisis, there are very few people who make it to the top. Then the rest of them struggle with their career and sometimes even after buying their dream car, they are not able to pay the rest of the money, so they abandon the car and flee from the city to avoid going into jail.
There are also foreigners who get a high-paying job and start buying many luxurious things, which sometimes include a supercar as well, but the financial crisis becomes a struggle for them to keep up with the living cost. Therefore many exclusive sports cars like BMW, Ferrari’s, and Lamborghini’s were abandoned by their owners as they got bankrupt.
Well! The case of abandoned luxury cars in Dubai is a prime example of how financial difficulties can arise even for those who are initially financially stable.
It just goes to show that no matter how much you earn, it’s important to manage your finances well. If you want to learn how to avoid such financial troubles, you should check out our article on “10 Steps To Organize Your Personal Finance In New Financial Year“
The Strict Law in Dubai
Sharia law is followed by Dubai’s legal system, in here if your debt is not paid by you, it becomes a criminal offense. For those who go bankrupt, the legal system of Dubai doesn’t show an ounce of mercy to them. The people take loans from the bank to buy these supercars and when they are not able to pay off the loan of their cars they are forced to leave their cars and flee Dubai.
The law strictly states that if they are not able to repay for their cars and credit card bills, they end up in jail. Sometimes, the keys of the cars are left in the ignition as well while they flee to avoid jail time.
This doesn’t just include foreigners but the locals as well; they bought those supercars by taking loans to keep up with their acquaintances but end up with the sword of debts hanging on their heads. The amazing cars left behind keeps on getting more dust added to them with time, as the harsh laws remain the same for everyone and one will find no protection for bankruptcy.
Many people assume that the wealthy are immune to financial hardships, but the reality is that even the richest individuals need to safeguard their assets.
That’s why insurance is so important for anyone, regardless of their financial standing. If you want to learn more about why the rich choose to invest in insurance, check out this article on “8 Reasons Why The Rich People Buy Insurance?”
What Happens To The Abandoned Supercars in Dubai?
Now the main question, What happens to these cars? Well, to be specific when abandoned cars are found by the police and authorities, they notify the owners of these cars.
Most of the time, the owners choose to ignore the notification and don’t show up for their luxury cars, so the vehicles get confiscated. These cars often remain unclaimed and are auctioned at a much lower price.
Some reports claimed, every year over 3000 cars are left alone in the urban center of Dubai. Whoever wants to buy a luxury car at a much cheaper price can take a look at the auctions held for the cars in Dubai.
Is It Possible To Buy An Abandoned Car In Dubai?
Absolutely! It is possible to buy an abandoned car in Dubai, but the process can be quite complicated and may involve legal requirements.
According to the Dubai Municipality, an abandoned vehicle is defined as any motor vehicle that has not been moved from a public place or private property for a period exceeding 30 days, and the owner or operator cannot be identified or contacted.
When the Dubai police find an abandoned car, they give the owner a 15-day notice to claim it. If the owner doesn’t come forward, the Dubai municipality seizes the car.
The owner still has six months to claim the car before it’s auctioned off. The auctions of the cars are through invitation-only, so buyers need to register with the police to verify they can afford the car.
Alternatively, buyers can ask a dealer to help them bid on their desired abandoned car.
To buy an abandoned car at a car auction, follow these steps:
As a guest, you’ll get a document with all the car details.
Register for the auction by showing your Emirates ID and paying a deposit fee at the counter.
You’ll receive a bidding number.
A panel of 4 to 5 people will run the auction, and the car will go to the highest bidder.
You must pay for the car within 48 hours after the auction.
Remember, these cars don’t come with any manufacturer or dealer warranty.
Points to Consider Before Buying an Abandoned Supercar in DUbai
Before buying an abandoned luxury car in Dubai, it’s essential to perform a thorough inspection both inside and out. These cars often sit in impound lots or other locations for long periods, which means dust and sand can accumulate in the engine, affecting the car’s performance. Even after a detailed wash, some dirt might remain, so it’s a good idea to take the car to a detailing shop in Dubai for a deep clean.
Luxury cars are often abandoned in Dubai for various reasons. Now that you know what happens to these cars and how they’re sold, if you’re interested in purchasing one, be sure to contact a licensed dealer. Also, ensure you have all the necessary documents for buying a new or used car in Dubai.
Conclusion
So what can we learn from the issue of abandoned supercars in Dubai? The message is clear:
Financial planning and responsible spending are crucial to long-term success.
It’s easy to get caught up in the allure of luxury and excess, but these things can quickly become a burden if not properly managed.
By taking a lesson from the abandoned supercars in Dubai, we can avoid the pitfalls of overspending and ensure that our businesses and finances remain on solid footing.
Why are supercars abandoned by their owners in Dubai?
The owners after facing bankruptcy often flee the country and left the luxury cars behind, as under Sharia law, if the debt is not paid, then it’s a criminal offence and the person is subjected to jail.
Where is the supercar graveyard?
Dubai abandoned supercars are often left on the streets, attracting attention due to their high value. The supercar graveyard is in Dubai. They can be found randomly in the Airports and other parking lots abandoned by their owners.
How much time is given in Dubai to the owners to claim their cars back?
As per the law of Dubai, once the abandoned car is found and is seized, they have only six months to claim their car back.
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Though some of us still want to go for a first-hand experience of things, a significant number of people opt for used products instead of new ones, especially when it comes to the purchase of vehicles.
Our financial conditions have taken a tumble since the outbreak of the coronavirus pandemic, but new cars are getting costlier each day. Furthermore, as ironic as it is, the quality of these cars and their average lifespan are going down equally. Besides, for first-time buyers, going for used cars is always better as a decision. All of these reasons have boosted the sales of used cars.
Buying used cars in India is not at all pain, but all gain today! This is primarily because of the growing used car space in India, which is dominated by promising startups that are equipped with the technology of the age. Spinny is one such used car startup based in Gurgaon, Haryana that is disrupting the segment of used cars in India.
Read more about the brand Spinny, all the details of the used car industry, Logo and Tagline, Founders, Startup Story, Mission and Vision, history, Employees of the company, the Business and Revenue Model, Funding and Investors, Competitors, and more.
Spinny Company Details
Startup Name
Spinny
Also Known As
Spinny Cars , myspinny, Spinny Assured Cars
Legal Name
ValueDrive Technologies Pvt. Ltd.
Headquarters
Gurgaon, Haryana, India
Industry
Automobile, Automotive
Founders
Niraj Singh, Ramanshu Mahaur, Mohit Gupta, and Ganesh Pawar
Spinny is a reliable platform for used cars. Powered by cutting-edge technologies, Spinny promises simple, convenient, trustworthy transactions for all the users who look to buy and sell used cars.
The company’s platform contains a list of automobiles with full details that the buyers can check out. Furthermore, it also includes a test drive with a 5-day money-back assurance, thereby allowing the car owners to sell their vehicles and potential consumers to buy cars in an easy and transparent manner.
Sellers may arrange for an evaluation and accept an offer for their vehicle. Buyers may also go through the wide range of cars that Spinny offers online, choose a car, and book a test drive. Car owners may also put their vehicles for sale on the site and receive fast bids.
Spinny eliminates the danger of buying a used car and provides users with complete peace of mind. Its multi-step filtration means that the users always have the option of selecting from a pool of certified used automobiles of the greatest quality. When a customer buys a Spinny Assured automobile, he/she will be getting a used car that hasn’t been in an accident, hasn’t had its meter tampered with, has clean records, and has been properly inspected against a 200-point checklist.
Spinny – Industry
The used automobile market in India was valued at $561.13 million in 2023 and is predicted to grow to $738.57 million by 2032, with a CAGR of 3.10% between 2024 and 2032.
As opposed to the serious aftermath of the pandemic for the new car space, the impact of the COVID-19 pandemic on the industry was negligible. The industry is expected to significantly rise as more individuals desire independent mobility and new financial alternatives are incorporated into the used automobile market. Besides, after the pandemic onslaught, consumers have been forced to search for alternatives to new automobiles, and the used car sector has a lot of room for expansion in this area. Besides, manufacture and sale have also been hampered by the pandemic, which made the purchasers quickly resort to the used automobile market.
Spinny – Logo, and Tagline
Spinny Logo
Spinny has chosen red and black as its brand colors and the logo of the brand is crisp and catching, marked with the starting letter, “S”, of the brand.
Spinny’s tagline says, “Cars you will love to buy.”
Spinny – Founders and Team
Spinny was founded by Niraj Singh, Ramanshu Mahaur, Mohit Gupta, and Ganesh Pawar in 2015.
Spinny’s Founder and CEO is Niraj Singh. Niraj Singh has also worked as a Founding Partner at Outbox Ventures in the past.
Ramanshu Mahaur
Spinny and Karmabite were co-founded by Ramanshu Mahaur, who currently serves as the co-founder and CTO of the company. He was most recently a member of Adobe’s technical staff. Ramanshu graduated from the Indian Institute of Technology in Delhi with a Bachelor’s degree in Computer Science.
Mohit Gupta
Mohit Gupta is one of Spinny’s co-founders. Prior to joining Spinny, he worked at Flipkart from 2011 to 2014, holding several responsibilities.
Ganesh Pawar
Ganesh Pawar used to be Senior Manager of Business Development in Flipkart. He, then, co-founded Spinny. Now, he is building the food FMCG business at Udaan – an eCommerce-supply chain.
India’s used car industry has been getting a lot of attention for quite some years now. It is mainly due to the better value proposition that used cars offer, that more and more Indians are looking to opt for old cars than the newer ones.
However, the lack of proper information that is inherent in the process of the sales of used automobiles, the absence of trustworthy middlemen, the complexity of navigating through the variety of alternatives when it comes to buyers, and finding the correct price of the vehicles for sellers have all been roadblocks in this path.
Besides, the procedure of buying a secondhand automobile is cumbersome and overly complicated. Independents provide a wide range of rates and services to entice people to buy automobiles of dubious quality. Choosing from a pool of mint and lemon autos, for example, has a high likelihood of bad selection for a beginner. All these provided a cradle for the birth of Spinny.
Niraj Singh, an IIT-Delhi alumni, serial entrepreneur, and investor founded Spinny in 2015. His aim to alleviate young Indians’ automobile ownership woes led to the formation of the firm. Niraj invested $500,000 of his personal money into the company. He is now backed by numerous venture capital groups and has raised close to Rs 418 crore. Niraj saw a need to provide a quality experience for individuals buying used automobiles and decided to build a simple and clear platform for customers to collect information and purchase a car.
Niraj Singh, Ramanshu Mahaur, Ganesh Pawar, and Mohit Gupta embarked on a mission to develop Spinny in order to sift out the quintessential problems of annoyance and skepticism and break down the arduous procedure into a one-click solution.
Buyers may rest assured knowing that all of the cars on offer have been Spinny Certified, which means they have passed a thorough assessment by our expert inspectors. This guarantees that the buyer is fully informed about the vehicle’s condition and is making an educated selection. Buyers of Spinny-certified cars also benefit from a warranty on cars acquired via Spinny.
In addition, the organisation handles all documentation, from registration to title transfers, as well as aiding purchasers with financing their new acquisition. Spinny has finally brought actual ease and a smoother transaction to the used automobile market for both buyers and sellers.
The Spinny business initially started in Delhi NCR in 2015 and has seen quite a growth since then.
Spinny’s mission is to make car ownership accessible, simple, and delightful.
“Our goal is for the country to trust our method, believe in and enjoy our cars”, states the company’s website.
“Only four percent of people are satisfied with their experience of buying a used car. We are providing trust, transparency, and simplicity. Our aim is that the buyer should be able to purchase the car with the same confidence that he or she shows while buying a new car,” added Niraj.
Spinny – Business Model and Revenue Model
Spinny, transitioned from a customer-to-customer model to a full-stack one in which it buys, refurbishes, and sells old cars. According to the creator and chief executive officer Niraj Singh, the website sells close to 1,500 automobiles every month and is increasing at a constant pace of 15-16% month over month. Spinny hopes to roughly triple its current volume by the end of the year 2021, according to Singh.
“There was a lot more capital available, but we wanted limited dilution in this round because our burn is very limited. We don’t have a runaway problem. It was just that we wanted to add an extra layer of security and the ability to experiment more,” Singh said.
Spinny has over 2 lakh customers and works with around 1000 people in over 11 cities, with ambitions to grow to 6 more by the end of the year, 2021. It now offers used cars in the INR 4-8 lakh range but intends to expand its services to include both cheaper and higher-priced vehicles.
In 2024, Spinny startup sells over 7,000 cars each month. Spinny’s online sales have also increased by 13% to reach 70% of the total sales.
Spinny raised around $513.5 million in funding over the 9 funding rounds it has witnessed to date. The last funding came in the form of an undisclosed funding round from Sachin Tendulkar after the huge Series E funding round on November 24, 2021, led by Tiger Global and Abu Dhabi Growth, which helped the company join the unicorn club of Indian companies. Currently valued at over $1.67B, as of December 2024, Spinny has already become the 4th Indian unicorn startup in the used car space and the 39th unicorn startup of India to achieve a unicorn valuation in 2021.
Date
Round
Amount
Lead Investors
December 14, 2021
Funding Round
–
Sachin Tendulkar
November 24, 2021
Series E
$283M
Tiger Global, Abu Dhabi Growth Fund
Jul 9, 2021
Series D
$103.30M
Tiger Global Management
Apr 7, 2021
Series C
$65M
General Catalyst
Sep 27, 2019
Series B
$43.7M
Fundamentum
May 21, 2019
Series A
$13.2M
Accel, Elevation Capital
Nov 13, 2018
Debt Financing
$4M
Blume Ventures
Jun 6, 2017
Seed Round
$1M
Blume Ventures
Spinny – Shareholders
Spinny shareholding as of November 2024 (source: Tracxn):
Spinny Shareholders
Percentage
Niraj Singh
9.7%
Mohit Gupta
2.6%
Ramanshu Mahaur
2.6%
Tiger Global Management
14.1%
Elevation Capital
12.5%
Accel
13.1%
General Catalyst
6.6%
ADFD
5.6%
Fundamentum
5.2%
Avenir Growth Capital
5.1%
Blume Ventures
5.3%
ESOP Pool
6.7%
Others
10.9%
Spinny Shareholders
Spinny – Acquisitions
Acquiree Name
About Acquiree
Date
Amount
Scouto
Scouto is an AI-powered connected car connectivity start-up.
Feb 10, 2022
–
Truebil
Truebil is a team of young, highly motivated professionals who strive to help you buy and sell used cars in the simplest way possible.
Aug 6, 2020
–
HopCar
HopCar is a provider of buy and sell car. Free Inspection. 15 days Sale Guarantee.
Jun 13, 2016
–
Spinny competes with its ESOP buyback for its current and former employees. The ESOP buyback plan announced on December 21, 2021, worth ($12 mn) INR 90 crores, was the first employee stock ownership plan that the company has seen to date.
Spinny – Growth and Revenues
Top Car Preferences: Maruti Suzuki, Hyundai, BMW, and Mercedes-Benz were the most popular in 2024.
Online Sales: 70% of purchases were made online in 2024.
Spinny Parks: 50% of deliveries were from new Spinny Parks in 2024.
Financing: 46% of buyers used Spinny Capital for financing in 2024.
Metro Growth: Bangalore, Delhi NCR, and Hyderabad saw the highest sales in 2024.
Spinny – Financials
Spinny’s financial performance from FY20 to FY24 shows strong revenue growth but continued losses. Revenue grew from INR 17.7 crore in FY20 to INR 3,821.9 crore in FY24, while expenses also increased, leading to a loss of INR 587.5 crore in FY24.
Particulars
FY24
FY23
FY22
FY21
FY20
Revenue
INR 3,821.9 crore
INR 3,380.7 crore
INR 180 crore
INR 39.7 crore
INR 17.7 crore
Expenses
INR 4,409 crore
INR 4,196.1 crore
INR 670 crore
INR 150 crore
INR 93.9 crore
Profit/Loss
INR -587.5 crore
INR -815.5 crore
INR -490 crore
INR -110.3 crore
INR -76.2 crore
Revenue grew by INR 441.2 crore (13.05%) from FY23 to FY24. Expenses increased by INR 212.9 crore (5.07%), reducing the loss by INR 228 crore.
Spinny Revenue:
Spinny’s revenue grew from INR 3,380.7 crore in FY23 to INR 3,821.9 crore in FY24, mainly due to higher revenue from operations.
Revenue Source
FY24
FY23
Revenue from operations
INR 3,725 crore
INR 3,259.8 crore
Other income
INR 96.8 crore
INR 120.9 crore
Total Revenue
INR 3,821.9 crore
INR 3,380.7 crore
Revenue from operations increased by INR 465.2 crore (14.27%), while other income fell by INR 24.1 crore (19.93%).
Spinny Expenses:
Expenses rose from INR 4,196.1 crore in FY23 to INR 4,409 crore in FY24, driven by higher purchases of stock-in-trade and finance costs.
Expense Type
FY24
FY23
Cost of materials consumed
INR 90 crore
INR 143.8 crore
Purchases of stock-in-trade
INR 3,495.2 crore
INR 3,242.9 crore
Changes in inventories of finished goods, WIP
INR 8.4 crore
INR (217.5) crore
Employee benefit expense
INR 391.7 crore
INR 393.5 crore
Finance costs
INR 90.1 crore
INR 67.7 crore
Depreciation, depletion and amortisation expense
INR 62.1 crore
INR 77.9 crore
Other expenses
INR 271.5 crore
INR 487.8 crore
Total Expenses
INR 4,409 crore
INR 4,196.1 crore
Purchases of stock-in-trade increased by INR 252.3 crore (7.78%), while other expenses decreased by INR 216.3 crore (44.34%).
Spinny Profit/Loss:
Spinny reduced its losses from INR 815.5 crore in FY23 to INR 587.5 crore in FY24 due to revenue growth and cost management.
Profit Type
FY24
FY23
Gross profit/loss
INR 326.7 crore
INR 137.8 crore
Operating profit/loss
INR -497.4 crore
INR -747.6 crore
Net profit/(oss
INR -587.5 crore
INR -815.5 crore
Gross profit increased by INR 188.9 crore (137.08%), and net loss reduced by INR 228 crore (27.96%).
Quick Summary:
Revenue: Increased by 13.05% (INR 441.2 crore), driven by a rise in revenue from operations.
Expenses: Increased by 5.07% (INR 212.9 crore), mainly due to higher stock-in-trade purchases and finance costs.
Profit/Loss: Net loss was reduced by INR 228 crore (27.96%) due to improved gross profit and controlled expenses.
Spinny, a used car startup, had laid off 5% of its workforce, or around 300 employees in August 2023, as the company merged the Truebil and Max platforms into the main platform. The reason for the layoff is to have cleaner and more focused execution going forward and to offer everything to customers on the main platform.
The company’s official statement on this “We have witnessed a sharp uptick in demand for reliable, budget-friendly cars as most people have resumed work from the office. By splitting our inventory of cars across different brand platforms, we were sometimes unable to offer enough options to such customers. With this consolidation, we should be able to meet the needs of these customers well.
Spinny is providing affected employees with a three-month severance package, faster ESOP vesting, and the option to maintain their assets as a show of support.
The trust issue is one of the major worries consumers have when buying used automobiles, according to Niraj Singh, co-founder, and CEO of Spinny. The startup’s rigorous and transparent inspection of the car, buying it from the owner, and then selling it to clients, addresses those concerns, Singh adds.
The business claims it is removing conventional intermediaries from the mix, making used car purchases more reasonable and reliable for clients. If a consumer is unhappy with the automobile they bought from Spinny, they will receive a complete refund.
Spinny started out as a used automobile marketplace, but according to Singh, the company has grown to become a full-stack platform. The pandemic harmed Spinny’s company for a few months, according to Singh, but the startup has now restored its pre-pandemic growth rates.
According to Singh, the outbreak of the deadly virus made many people wary about taking an Uber or Ola trip, prompting them to look into purchasing their own vehicles. Spinny’s CAC was also dramatically lowered, he claimed.
Though Spinny is an evolving startup that has already achieved a unicorn valuation, it is facing tough competition from its rivals in the used car space. Therefore, surviving in one such landscape with cutthroat competition is itself a challenge that Spinny is battling against.
Spinny – Future Plans
Spinny doesn’t want to be just another participant in the market in the coming year; instead, it wants to be the catalyst for changing people’s perceptions about used vehicle purchases. According to Niraj, the goal is to create a seamless shopping experience that is consistent with openness, quality, responsibility, and trustworthiness.
Spinny – FAQs
What is Spinny?
Spinny is an Indian used car buying and selling platform founded in 2015. It provides a seamless, transparent, and trusted process for purchasing and selling pre-owned cars.
What does Spinny do?
Spinny is a used car trading platform that aims to deliver affordable used cars via an easy and transparent process for everyone.
Who founded Spinny?
Spinny was founded by Niraj Singh, Ramanshu Mahaur, Mohit Gupta, and Ganesh Pawar.
Spinny founded in which year?
Spinny was launched in 2015.
Which companies do Spinny compete with?
CarDekho, Droom, CARS24, CarTrade, CarWale, Creative Webmedia Pvt Ltd, Carnation, CheckGaadi, Chehaoduo, CapCar, Shift Technologies, and Carlypso, are the top ten rivals in Spinny’s competitive set.
What is Spinny business model?
Spinny operates on a direct-to-customer (D2C) model for buying and selling used cars. It owns and inspects the cars, ensuring quality before selling them to customers through its online platform and physical hubs. This eliminates middlemen, offering competitive prices and a better customer experience. The company earns revenue from car sales, financing services, and value-added products like insurance and warranties.
Right now, India’s car market is the fourth biggest globally. Nevertheless, the luxury segment only makes up 2% of the total because of the one-of-a-kind characteristics of the Indian market and the hefty import duties, which can reach 100%. Consequently, this makes it harder for luxury foreign automakers to expand. This number has even fallen below 1% as of 2021.
According to Zigwheels.com, sales of imported vehicles fell to 19,781 units in 2021, a 51% decrease from 2020, and the pandemic only made matters worse.
But with electrification, these automakers may be able to forge a stronger foothold in the enormous Indian market. But first, let’s take a step back and examine the current situation to better understand how these car companies intend to establish a presence in this region of Asia.
Expert market research has just reported that India used luxury car market size is poised for robust growth, with a projected Compound Annual Growth Rate (CAGR) of 16.30% from 2024 to 2032. Rising demand for luxury vehicles, especially for subscription services and rentals, and a larger pool of youthful buyers are the main factors fueling this expansion.
The market’s expansion can be attributed, in large part, to the enthusiasm of the younger generation for high-end automobiles. Furthermore, more and more people are choosing subscription services and renting cars, which opens the market to more people and makes luxury vehicles more accessible. There will be plenty of chances and thrills for industry participants and enthusiasts as these elements combine to take the used luxury car market in India to new heights in the coming years.
When purchased brand new, high-end vehicles from prestigious manufacturers like Mercedes-Benz, BMW, Audi, and Jaguar can cost a pretty penny. But as time goes on and these cars lose value, more people in the used automobile market can afford to buy them. People in India, particularly those living in cities, now have more money to spend how they like. A desire to buy luxury cars, even secondhand ones, has become aspirational as a result of this. People are better informed about the benefits of purchasing used luxury cars because of the proliferation of digital platforms and simple access to information. They are aware of the possibility of substantial reductions that do not sacrifice performance or quality. Certified pre-owned programs are now available in India from several luxury car manufacturers. By enforcing high-quality standards and providing extended warranties, these programs give purchasers peace of mind when purchasing used cars.
Market Ratio of Pre-owned to New Cars Across India From Financial Year 2016 to 2022, With Estimate of 2027
Exciting Times Await!
According to Balbir Singh Dhillon, CEO of Audi India, rising demand for luxury cars might cause sales in the country to surpass 50,000 units in 2024, a first for the country. Last year, the domestic luxury car market as a whole saw record sales of almost 48,500 units, an increase of 28 percent from the previous year.
The luxury car market in India has been relatively stable over the last decade, with yearly sales of less than 2% of all passenger vehicles. Retail sales for Audi vehicles in India increased by 89% in 2023, reaching 7,931 units, up from 4,187 units the previous year.
Similarly, with sales of 17,408 units, up 10% from 15,822 units in 2022, Mercedes-Benz India had its biggest year ever in India.
In 2017, a combined total of 14,172 BMW and MINI vehicles were sold in India by BMW.
Growth of Mini-Metro Networks and Portfolios
Launches of new models have long piqued consumer interest, with luxury automakers typically setting the tone. The year 2024 will see the release of more than 24–30 new models. Luxury automakers are expanding into new markets with new models, and with production volumes on the rise, even the plants may have to expand.
Mercedes-Benz may consider expanding its operations if it reaches its full capacity of 20,000 vehicles, which is expected to happen within the next year or two. Mercedes’ total investment has increased rapidly from 2,000 crore rupees four or five years ago to 3,000 crore rupees now. In ten additional locations this year—Jammu, Kanpur, Udaipur, Amritsar, Patna, Valsad, Agra, Kannur, and Kottayam—Mercedes intends to open twenty new workshops. The manufacturer’s goal is to ensure that all customers can access a service center within a two-hour trip.
In addition to releasing new models, BMW Group India is expanding the number of touchpoints with customers. Vikram Pawah, President & CEO at BMW Group India informed that by the end of FY26, the number of BMW and Mini contact points will increase from 63 in 35 locations to 80 in 43 cities. With the return of the Q3 SUV, Audi India has returned to a 15-model portfolio after restructuring its product line-up and powertrains in preparation for 2020. The corporation is slowly making its way back to its prior height, and the brand is reaching a bigger audience as a result.
There is every reason to expect the luxury car market in India to continue growing. This area is poised to have an even greater increase in sales volumes as young entrepreneurs venture into new ways to expand their firms. Maintaining a seamless supply chain, resolving semiconductor shortages, navigating geopolitical problems, etc. are just a few of the obstacles that these high-end firms must overcome. Once they are resolved promptly, this sector will no longer have any obstacles in expanding its reach in India.
This Pandemic has brought many changes in our lifestyles and hence the market. One such change is the drastic increase in demand for a used car. But strangely, it’s much before the pandemic that the demand for a used car was so high. This pandemic has just fueled it more.
After India entered the BS-VI era in auto-industry from April 2020, the value proposition of the used cards is growing stronger. People in India have always been price-conscious. They are expecting cars to become expensive due to additional technology costs. Which has led them to opt for used cars rather than the new ones? And why not? When they are getting a better option for the same price as that of the new car !!
As per the MD and CEO of Mahindra First Choice Wheels (MFCW), companies are gradually focusing on reducing the production of diesel cars. After Maruti Suzuki decided to exit the diesel car segment by April 2020, the demand for compact diesel cars in the used car market showed a steep growth. Unless of course, there is a backlash against diesel cars.
The markets are dominated by the major players like OLX, Mahindra First Choice Wheels, Cars24, Maruti True Value, Hyundai H Promise, and others.
Some Factors, that affect the growth of the used cars in the market are:
Organized Channel Expected to Register Higher CAGR
Growing demand for luxury cars
Competitive Landscape
Increased Reliability
Reduction of the Ownership period
stacked up used cars
Organized Channel Expected to Register Higher CAGR
In the Indian market, the organized phase is anticipated to witness a CAGR growth of 22.79% throughout the forecast amount.
This marketplace for used automotive has seen vital growth over the last 3 years. This growth increase is especially driven by sales of used cars in railway system cities and an increase in online sales platforms, like CarDekho, Cars24, Droom, etc.
The majority of the OEMs have already entered the used automotive market. and people WHO didn’t enter the used automotive market at the initial stage entered the market throughout the last 5 years. Renault started the pre-owned automotive business in 2015 and Nissan had entered the business in 2017.
Significant OEMs in the Asian country, like Maruti Suzuki, Mahindra, Hyundai and Toyota, and luxury automotive makers, like BMW, Audi, and JLR, have their used automotive network. The sales have enlarged since 2017.
Consumers like safety, transparency, convenience, and low risk, whereas buying a second-hand automotive. that ought to act in favor of the organized sector. nevertheless, the unorganized sector occupies nearly eightieth of the whole market than the organized sector.
sales in organised sector vs un-organised sector
Growing Demand for Luxury Cars
One of the main reasons for the rise in the used automotive business is the demand for luxury cars. Before, owning a luxury automotive was accustomed to being a dream for the bulk, chiefly owing to money issues. however, this can be step by step dynamic, because the shoppers should buy used automotive.
Some major factors driving the expansion of the used luxury cars are as follows –
luxury cars have a high rate of depreciation worth,
youth driving towards higher model on low value
in urban cities, deprivation in finance management, and want quality product.
increase in the online marketplace for used automotive.
One of the major reason for the increase in used car business is the demand for luxury cars. Before, owing a luxury car was used to be a dream for the majority, mainly because of financial problems. But this is gradually changing, as the consumers can buy used car.
Reduction of Ownership period
Owners of the posh cars tend to unload their vehicles within a year or two. As they need for upgraded and higher models. A few years ago , the possession amount was of 6-7 years for many cars. It’s currently reduced to around four years and is predicted to dip additional to 3.5 years by 2021. This directly impacts the availability of used cars in market and additionally in good shape. That additional has led in accessibility of alternative for the shoppers.
Competitive Landscape
Online Presence
Opening of on-line platform could be a major force behind a rise within the numbers of the used vehicles business. Conversion has conjointly been instrumental in organizing the used automotive business on-line that historically been aloof from the net area.
With the existence of on-line portals, customers are able to flick through variety of used cars that work into their budget. It’s conjointly created the purchasers aware and able to search full regarding their future purchases yet.
Organised Players
The marketplace for used automotive in Asian country is generally commanded by major players like OLX, Mahindra 1st alternative Wheels, CARS24, Maruti True worth, and Hyundai H Promise. They have the biggest share of the market due to their business models and enlarged variety of pre-owned automotive shops.
Quikr, Honda automobile Terrace, Ford Assured, Toyota U-Trust, etc., are within the method of increasing their shops and operations within the native market.
Due to the increasing technological advances in the automobile sector, cars have gotten a lot of reliable. A well-maintained automotive can simply run, not bothering for years. This means, even the second owner of the vehicle, will be assured of a hassle-free driving possession expertise. Manufacturers are providing long pledge periods up to 7 years in some cases. This offer gives rise to the preference of shopping for a second user automotive. They get the advantage over manufacturing defects which will be treated with no overhead prices.
The used automotive market in the Asian country was valued at USD 24 billion in 2019. And it’s expected to register a CAGR of fifteen.12% throughout the amount (2020-2025).
The demand for used luxury cars has been growing at some thirty-fifth – four-hundredth year-on-year basis.
OLX’s report shows, the used luxury vehicles whose value was Rs 15lakh or more were the foremost most popular alternative among the shoppers.
Every month over 55,000 luxury cars are listed. The provision for premium cars jumped by over fourfold in 2017.
According to the OLX automobile Note report, 38th% of the 4-wheeler listing consisted of top-end sedans and luxury cars.
Mahindra 1st alternative Wheels has recorded sales growth of four-hundredth throughout 2018-19. that registered a revenue of Rs 148 crore.
It is sold-out over 250,000 used cars throughout 2018-2019.
CarDekho has been in the number 1 position. Within the on-line used automotive market recording a Year-on-Year rate of regarding 100 percent over the last 3 years.
With COVID-19, folks are following social-distancing. While they’re attempting to urge back to their family, folks are preferring personal transport over the public. and during this time of crisis, the economic resolution is to shop for a second-hand automotive
Pratyusha Srivastava
