Diesel demand moves to used car market, rural customers - the times of india

Chennai: Diesel’s share in used car sales has more than doubled in the last 5 years as buyers in smaller towns prefer this fuel coupled with not so stringent environmental laws in these

locations, a study said. In 2015, 36% of all used car sales were diesel vehicles. In 2020 that has jumped to 65%, a study by Droom, a used car buying portal said. Used car marketers say the

rise in numbers is because of a sudden increase of diesel vehicle supply in the used car pool as metro markets move towards petrol and also because diesel has a solid presence in hinterland

and rural markets. Used car marketers say diesel rules the used car market because post BS6 a diesel used vehicle is simply a better bargain. “Diesel vehicles have far more compelling

pricing than petrol. In 2020 the average selling price of used diesel vehicles on our platform declined 15% year on year as diesel lost shine in the new car market,” said Sandeep Aggarwal,

founder chief executive officer(CEO), Droom. For non-metro customers this meant they could now buy their dream SUVs at a more affordable price in the used mart. “Customers in non-metros

prefer diesel to petrol because the price differential between petrol and diesel versions make them more economical,” agreed Amit Kumar, chief executive officer, OLX Autos. The diesel demand

is also a reflection of hinterland markets joining the SUV craze. “The share of diesel cars in the used car pool has been increasing especially in SUVs in the period 2013-2017 from where

most used cars come into the market currently. SUVs which are gaining customer preference and share are largely diesel powered and the demand for SUVs is so strong in the used car market

that there is a demand-supply mismatch for popular models,” said Ashutosh Pandey, CEO Mahindra First Choice Wheels.