COVID-19 pandemic has disrupted everything. From business operations to how people commute; everything has changed to ensure minimal human contact. Public transport has become one of the dangerous means to commute as you are more exposed to potential coronavirus infection.
More people are now inclined to the idea of owning a car as it would give them greater control over the hygiene of the environment in which they travel. Another reason is the absence of public transport. Several cities have partially opened up public transport, however, it is not working at its full capacity. For instance, Delhi Metro has yet to resume its services and there are very few buses to commute comfortably.
As per a research report, more than 50 percent of Indians want to buy a car in 2020. That’s the second-largest number of potential car buyers after China.
If we believe this report, the Indian car market is poised to bounce back sooner than expected. Here are a few reasons that will fuel the growth of the car market.
To boost customer confidence and assist them in owning their own car, several carmakers including Mahindra, Honda, Hyundai, Volkswagen are offering lucrative incentives. Carmakers are offering moratorium on the EMIs of financed amount from 3 months to up to 1 year. Some car dealers are also offering financing options at up to zero percent interest rates.
Lucrative Finance Schemes
Car manufacturers are also offering lucrative incentives on high-end trims and models with large inventory. This means you can get top specs at the price of a middle trim. Brands like Hyundai has tied up with banks to give instant car loans. This facility is for online buyers who don’t want to visit the dealership and want their car delivered at the doorstep. Eligible buyers can get up to 100 percent finance of the on-road price of the car with just a single click.
Increased Demand of Second Hand Car
People who need to commute on a regular basis for essential services through public transport or two-wheelers are seriously thinking of upgrading to a car. However, dim market conditions and the sluggish job market is not encouraging them to spend big on a new car. Amid pandemic, it is a wiser decision to go for a more affordable used car.
Aside, amid the increasing demand of second-hand cars, existing car owners are also planning to sell off their car at handsome prices and upgrade to a new car at discounted rates. This factor will also generate supply in the second-hand car market of luxury and high-end models and fuel the growth in the new car segment.
With the above-mentioned factors, we are optimistic about witnessing a boost in car sales. In the coming months, we also expect that the government would step in to support the auto sector that would also bring a fresh wave of incentives.