Hyderabad car sales see degrowth

Hyderabad, Nov. 28: Despite growing car sales across the country, the car market in Andhra Pradesh, especially Hyderabad, failed to pick up.

According to SIAM, new car sales in AP and Hyderabad have surprisingly rem-ained subdued in the second quarter, with a growth rate of three per cent and a degrowth of six per cent respectively as against the national growth rate of 22 per cent compared to same quarter last year.

“There are many reasons for the subdued growth. The prime reason could be the slowdown in the IT sector. Because of Hyderabad’s excessive dependence on the IT job market, the purchasing power of a large chunk of prospective customers has come down, consequently affecting the sales of both new and pre-owned cars,” explained Mr Viren Choudary, the director of Dr Car, India’s largest pre-owned car trade platform.

The pre-owned car sales in last the last two months have, however, recovered with a growth rate of 12.72 per cent, after a six months long degrowth. In Hyderabad, the pre-owned market constitutes around 40-45 per cent of the total car sales market. Nationally, the pre-owned cars market is growing at 20 per cent.
With organised players entering the pre-owned market, Mr Choudary sees huge growth potential in this space. About 10 per cent of this market is in the organised segment, 30 per cent broker-led, 60 per cent in unorganised.