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.