IBB Report 2023: Fewer Buyers For CNG, Petrol Dominates Pre-Owned Car Buyers Choice

According to the 2023 edition of the Indian Blue Book launched by carandbike and Das WeltAuto recently, only 4.16 per cent of pre-owned car buyers prefer to invest in a CNG-powered car. A major reason for abstaining from the CNG is the reduced boot space and the limited network of the CNG filling station.

Reduced boot space and limited CNG network are the major reasons for lesser demand

Since its inception, CNG as fuel was earlier preferred for commercial taxis/busses under government regulations as an alternative cheaper fuel which was also less harmful when it comes to emissions. With time many OEMs started offering factory-fitted CNG options to buyers including Maruti Suzuki, Hyundai, and Tata, while some OEMs are still considering the CNG alternative in the coming years. The new car sales with CNG might be growing, especially in the lower segment and commercial fleet, but CNG doesn’t see a huge demand in the used car segment.

Also Read: India's Pre-Owned Car Market Set To Reach 10.92 Million Units By FY2028: IBB Report 2023

Only 4.16 per cent of pre-owned buyers opt for CNG cars

Meanwhile, diesel-powered cars enjoyed a little over 30 per cent market share amongst the pre-owned car buyers. The demand for diesel has been reducing of late especially with the constant fear of government regulation of killing diesel as a fuel in the coming years. Even the restriction on diesel-powered cars in certain prominent parts of the country has further fuelled the deviation away from oil-burner cars. 

The pre-owned EV segment is still in the nascent stage with its own set of challenges

Also Read: IBB Report 2023: Key Factors Driving Growth In Used Car Sales
 

And when it comes to EVs, the used car market is still in a nascent stage for the pure electric models. Firstly, there are very few new EVs on sale in India right now and sales of these EVs amount to a very small number. The current crop of EV owners is not yet willing to sell off their first electric car so soon. This results in a lesser supply in the used car market. Secondly, there’s also the inexperience of EV’s life when it comes to the battery, motors and other ancillaries. So there’s still a dilemma of how wise it is to purchase a used EV. According to the IBB report 22-23, when it comes to the preference of Indian car buyers purchasing a pre-owned EV car, around 44 per cent of respondents favoured opting for it while 56 per cent of respondents are still undecided. 

Petrol-powered cars account for 65 per cent of used car sales in India

So in India, petrol cars still dominate the used-car segment with a 65 per cent market share which is quite similar to the new car space where petrol cars have about 70 per cent takers.