Big Boy Toyz eyeing non-metros for pre-owned luxury car business

India’s used car market is projected to cross $25 billion mark by 2023 and most of the segment is predominantly governed by brands such as Honda, BMW, Audi, and Mercedes-Benz
Even as the lockdown may have resulted in a temporary blip in its business, pre-owned luxury cars player Big Boy Toyz is bullish on non-metros. Having opened its latest store in Ahmedabad after Gurgaon, Mumbai and Hyderabad, the company is looking to go beyond metros and tier-1 cities.

"Location plays a significant role in our industry. While buyers from Tier-1 cities may be interested in monetising deals where they could save big, it's mostly the aspirational buyers from the Tier-2 and -3 cities who come looking for used luxury cars for better value for money. The demand is so much so that 50% of pre-owned luxury car owners belong cities other than metro and Tier-1," said Jatin Ahuja, MD and Founder of Big Boy Toyz. 

Big Boy Toyz (BBT) currently sells 350-400 luxury and super luxury cars in a year. In 2019, BBT clocked a revenue of Rs 225 crore. Dealing with 28 brands, including Lamborghini, Ferrari, Bentley, and as many as 150 models, which start from Rs 40 lakh and go up to Rs 4 crore, BBT is targeting Rs 300 to 350 crore revenue for FY’21. 

With its expansion plans in place despite lockdown, Ahuja said that it was a short-term volatility and that BBT hoped the effect would be minimized in the longer run. "The functioning may have come to a halt now, but we hope that the tension settles down and we are back in business soon," Ahuja added.

According to Ahuja, India’s used car market is projected to cross $25 billion mark by 2023 and most of the segment is predominantly governed by brands such as Honda, BMW, Audi, and Mercedes-Benz. 

"Over the past few years, our industry has seen a surge in demand among millennials who are tech savvy and want more premium choices at its best price. They aim at maximizing the values and ensure that their choices are not making any negative impact on the environment," he said.

Factors like revisions in Goods and Services Tax (GST) rates, launch of BS-VI vehicles, easy availability of finance and rise in disposable incomes have been contributing to the growth in pre-owned luxury car demand over the new cars. 

On its part, BBT has seen a large chunk of used car owners fall in the age group 35-50 years and predominantly male at 70 per cent who had been using a lower segment car before. "They often either come from or work in the India’s top metro or Tier-1, Tier-2, and Tier-3 cities," said Ahuja. 

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel