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New car buyers’ SUV rush increases 20% in Q1 24, Tata enters top 3 brands

The latest data analysis shows that the number of first-time buyers choosing an SUV has increased by 20 percent, reflecting a substantial shift from last year

The latest data analysis shows that the number of new buyers choosing an SUV has increased by 20 percent, reflecting a substantial shift from last year’s 10 percent.

As consumer preferences continue to evolve in the automotive industry, Spinny reports an increase in the first four months of the 2024 calendar year (CY24), especially within the SUV segment.

The latest data analysis shows that the number of new buyers choosing an SUV has increased by 20 percent, reflecting a substantial shift from last year’s 10 percent.

This trend is evidenced by the 73 percent of first-time car buyers across all segments.

In an ever-increasing array of choices, the customer base shows a strong preference for brands like Maruti, Hyundai and Tata.

Compact SUVs continue to gain popularity, with models like the Ford EcoSport, Hyundai Creta and Tata Nexon emerging as top choices, while colors like white, gray and red dominate the line-up.

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Besides the SUV trend, the data points to a shift in preference towards hatchbacks, with models like the Renault Kwid, Hyundai Grand i10 and Tata Tiago topping the charts.

The pre-owned luxury car segment in particular is experiencing growth in Tier 2 and Tier 3 cities, with brands such as BMW X1, Jeep Compass and Mercedes C-Class gaining popularity.

Niraj Singh, Founder and CEO of Spinny, said: “This increase reflects a significant shift in consumer preferences towards versatile and spacious vehicles.”

In the first quarter of CY24, Bengaluru, Delhi-NCR and Hyderabad emerged as the key cities driving used car demand.

According to the report, customers show a clear preference for manual transmissions, which make up 70 percent of purchases, while automatic cars account for the remaining 30 percent.

Notably, demand for cars with automatic transmission increased by 10 percent compared to the previous year, indicating a shift towards a more comfortable driving experience.

Digital transactions are gaining prominence with 60 percent of sales taking place online, underscoring the growing preference for personal mobility and the convenience of digital transactions.

First publication date: May 21, 2024 06:42 IST