Audi India forecasts 35-40 percent growth for used car brand in FY2024

    Audi Approved :plus sold 3,449 units in 2023, recording a 62 percent growth.

    Published On Feb 02, 2024 09:00:00 AM

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    Audi India forecasts 35-40 percent growth for used car brand in FY2024
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    With its pre-owned car business, Audi India is looking to capitalise on the widening gap between luxury and non-luxury cars, created by the increase in the price of entry-level luxury vehicles. The German automaker aims to boost the number of its Approved :plus showrooms for pre-owned Audis across the country — there are 25 at present — and estimates that the business will grow around 35 to 40 percent year-on-year in FY2024.

    1. Used luxury cars adressing gap between new mass market and luxury cars
    2. Cars sold through Audi Approved :plus get up to two years warranty

    "Car prices have risen quite a bit in the past five years, as has the gap between luxury and non-luxury prices. Due to this, we’re vacating some space at the bottom end of the pyramid. The only way we could address this is through the pre-owned cars business,” Head of Audi India, Balbir Singh Dhillon, told our sister publication Autocar Professional.

    Audi Approved :plus recorded a 62 percent growth in volumes in 2023, with 3,449 units sold. On the whole, in 2023, Audi India clocked an 89 percent growth, with sales of 7,931 units.

    Of late, the sale of pre-owned luxury cars has become an increasingly lucrative business in India, with organised players entering the market and offering better product service packages as well as warranties. Cars sold via Audi India’s Approved :plus showrooms undergo several rounds of inspection and come with a warranty of up to two years.

    Moreover, several automakers have acknowledged the favourable post-pandemic shift in the Indian consumer mindset towards spending and higher features. They also perceive the used car business as a bridge to lure more customers towards their new car business. Besides Audi, a number of other major luxury manufacturers, such as Mercedes-Benz, Lexus and Jaguar Land Rover, launched their pre-owned car businesses in India and have witnessed robust growth in the field.

    “This will eventually help us sell new cars because after two to four years of using a pre-owned luxury car, a customer has experienced luxury that then holds onto them," Dhillon said. "It’s a cycle: once you buy a used car, you eventually buy a new car."

    Noting that the availability of products is a significant challenge in the pre-owned car business, Dhillon said they could have sold more cars if there was better supply. "Right now, our challenge is to get more cars. So all our marketing activities are addressed towards acquiring more pre-owned cars and then selling them. Whatever is available is getting sold," he added.

    Also see:

    Audi Q7 gets a second facelift

    Audi India to launch 3 new cars, SUVs in 2024

    Audi Cars

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