CARS24 has registered a 15 per cent growth in Kerala and the company through its financial arm disbursed ₹102 crore loans in FY24, an increase of 160 per cent year-on-year.  

Gajendra Jangid, Co-founder and Chief Marketing Officer has attributed the reasons for the sales growth to high per-capita income, comprehensive road infrastructure and a preference for personal vehicles over public transportation.  

With the market becoming highly organized, there has been a considerable consumer shift to used cars because of its reliability, the company said.

Besides, the availability of easy finance options also led to a growth, he said adding that three out of four used cars sold in Kerala get financed, it added.

“The growing preference for financing in Kerala is a clear indicator of a broader trend towards more accessible and adaptable car ownership models”, he said. Kerala has highest percentage of car per household in India with 24 per cent compared to 7-8 per cent families in India, he said.  

Kerala shows a distinct preference for brands like Hyundai, Maruti, Suzuki and Tata with the Renault Kwid, Hyundai-EON and Grand i10 being the most popular models.  

According to him, 71 per cent of car buyers in Kerala opt to finance their purchase through CARS24 in the last quarter and nationwide 64 per cent of people choose loans for car purchases. Of this 20 per cent finance disbursed to women customers. As many as 411 loan applications are processed daily across the country. The consumers prefer good old hatchback cars in the pre-owned vehicle category, while it was SUV’s in the new car segment.  

He pointed out that there is a growing demand for pre-owned cars among Kerala youth and the average age of individuals opting for car financing in the State is 35 years. As disposable income grows, so does the aspiration for personal vehicle ownership.  

The company is looking at expanding its presence across the country with over 180 cites under its belt by integrating advanced technologies to position itself as a leader in the industry, he added.  

Published on May 15, 2024