Used cars sales overtake new car sales in Gujarat

The slowdown in the Indian automobile industry which has been facing low demand for new cars since the year 2011 has given rise to the trend of purchasing used cars instead of new cars. The figures of used car and new car sales in India have been thought to be at par. However, reports from the state of Gujarat say otherwise.

The year 2012 witnessed a higher demand for used cars in Gujarat in comparison to new car sales. This has been attributed to the shift of a significant number of new car buyers to used cars creating a marginally higher demand for used cars.

While there were 14,000 new cars sold per month in the year 2011, more than 15,000 used cars per month have been recorded as being sold in the year 2012. Overall, the number of new cars being purchased is lower than the number of old cars being sold.

Factors such as high interest rates, frequent hikes in fuel prices and increments in car prices has pushed a section of new car buyers to the low priced used car segment.