Spinny Sees 20% Increase in First-Time SUV Buyers in Q1'24, Signaling Consumer Trend Shift; Tata Enters Top 3 Brands
With the growing fondness for SUVs among consumers in the automotive industry, Spinny, India's full-stack used car marketplace, experienced significant growth in the initial four months of CY24. The company's latest data analysis reveals a substantial 20% increase in first-time buyers within the SUV segment, marking a significant rise from 10% in 2023. This indicates a growing interest and trust in the company, with 73% first-time car buyers for all segments.
Amidst a diverse array of choices, Spinny customers have exhibited the strong preference for renowned brands such as Maruti, Hyundai, and Tata. Compact SUVs keep growing with Ford EcoSport, Hyundai Creta, and Tata Nexon have emerged as top picks with colors such as white, grey, and red capturing the attention of discerning clientele.
In addition to the SUV trend, Spinny's data reveals a significant shift in consumer preferences towards hatchbacks, with models like the Renault Kwid, Hyundai Grand i10, and Maruti Suzuki Wagon R leading the charts. The pre-owned luxury car segment also saw growth in Tier 2 and Tier 3 cities. Brands like BMW X1, Jeep Compass, and Mercedes-Benz C-Class have gained popularity, enjoying the growing appetite for luxury vehicles in these regions.
Commenting on the rise, Niraj Singh, Founder & CEO of Spinny, stated, "Our commitment to delivering a simple and delightful car-buying and selling experience remains unwavering. The surge reflects a significant shift in consumer preferences towards versatile and spacious vehicles. We are meeting our customers' evolving needs by providing a wide array of high-quality cars. Our dedication to transparency, convenience, and unparalleled customer service ensures a seamless and satisfying car-buying and selling experience for every individual." In Q1 CY24, Bengaluru, Delhi-NCR, and Hyderabad emerged as the top cities driving demand for used cars. Spinny customers exhibited a clear preference for manual transmissions, constituting 70% of purchases, while automatic cars made up the remaining 30%. Notably, demand for automatic transmission vehicles, especially in the market for used cars in Delhi and second hand cars in Bangalore, has surged by 10% compared to last year, highlighting a significant shift towards a more convenient driving experience.
The company also witnessed a consistent traction in women car buyers, with 36% of women car buyers opting for Spinny cars, which surged to 46% in March alone. Additionally, 60% of the company's sales happened digitally, highlighting the growing preference for personal mobility and the convenience of online transactions.
Over 54% of Spinny's customers have opted for car financing through Spinny loans, facilitated by easy financing options and a broader trend of digitalization. This is a significant jump from last year of 46% of consumers opting for loans.
Spinny has received a customer base exceeding two lakhs; 25% of Spinny buyers have chosen the convenience of home delivery. Additionally, 50% of all car sales are from the dedicated Spinny Parks located in Bengaluru, Kochi, Ahmedabad, and Pune.
March saw the highest sales volume to date, with Akshay Trithya alone contributing to approximately 750 cars sold on that day.
