Automatic request under Rs. 7 Lakh will go up after locking – Carandbike Inquiry

The COVID-19 pandemic has hit the automotive market hard and there is no doubt about it. Production and sales of cars across the country were suspended for more than 50 days. But the industry is now recovering as part of the Lockdown 3.0 program. Few car manufacturers have resumed partial operations. But things are no longer the same. With social distance becoming the new norm, automakers have changed their business strategies and many have started selling cars online. That said, the impact of the pandemic on the economy will also affect consumers' buying habits, and we have already started to see its effects. Indeed, according to a recent carandbike survey, the impact of the economic downturn on the auto budget is becoming evident.

Survey shows that inquiries for cars under 7 Lakh have increased, while demand for cars over 9 Lakh has decreased

In the post-closure era, there will be a growing preference for personal mobility, and our survey has shown that demand for higher budget cars, which exceed ₹ 9 lakh, is currently down 14%. At the same time, demand for cars below ₹ 3 lakh has increased considerably, while demand for cars in the range from ₹ 5 lakh to 7 lakh has increased by 5%. The survey indicates that it is the younger generation who are now looking for entry-level / budget cars, trying to strike a balance between the need to ensure safety and security. hygiene by opting for personal mobility and their budget to buy a new car.

Also read: High cumulative demand for vehicles after the COVID-19 crash: carandbike survey

While overall SUV demand remains high, SUV demand from first time buyers has declined during the closing period, and they are now looking for budget options like hatchbacks. There is also a 10% growth in demand for used sedans. In fact, 4 in 10 people attributed a budget cut as the main reason they changed their car choice. Most of them have cut their budget by 10-30%. Of the total number of people participating in the survey, 42% said they had cut their budget, 32% reported no change in the budget, while 26% said they had increased their budget.

42% of people said they had cut their budget, 26% said they had increased it and 32% said their budget had not changed

The survey also showed a change in financial planning, since 60% of people said they would stick with a loan to buy a new car, while 15% of people who planned previously to make a full cash payment, they are now planning to take out a loan. ready. 20% of people said they would keep a car purchase with full payment in cash, while 5% of respondents, who previously planned to take out a loan, now plan to make full payment.