Safety Takes the Spotlight: 70% of Car Buyers Prioritize Safety Features This Quarter

CARS24, India’s leading AutoTech company, is back with its highly anticipated DriveTime Quarterly report for Quarter III, 2024. This quarter coincided with the festive season and from the very beginning of the festivities, the platform saw a high increase in both sales and savings and smart(er) car-buying decisions by Indians all across the nation.

This festive season also saw a clear shift in priorities, with safety emerging as a key factor in car purchases. As families across India celebrated, they chose cars not only for their affordability but for the peace of mind that comes with reliable safety features. There is a growing recognition that a new car isn’t just a purchase—it’s an investment in the well-being of loved ones, with pre-loved cars offering an ideal balance of quality, value, and safety.

Talking about the season, Gajendra Jangid, CMO and Co-founder, CARS24 said, “This festive season, cars are no longer just about getting from one place to another. They’re about creating memories and new beginnings. It’s heartwarming to see families choose cars as a way to bring freedom, comfort, and shared moments into their lives. Because, at the end of the day, better drives lead to better lives—and that’s what these cars represent.”

Here is how India shopped for cars this season:

Har Jashn mein gaadi

This festive season, cars were more than just a mode of transport—they became a symbol of new beginnings and prosperity. As families across India celebrated, cars became an integral part of their milestones. India bought 3 cars every hour and spent approximately 4 hours researching on the platform before adding their car to cart.

The transition from Shradh to Navratri alone marked an impressive spike with car deliveries on the first day of Navratri reaching 4x the normal average. Customers collectively saved over INR 10 crores through significant discounts in one month alone.

On Independence Day and Ganesh Chaturthi, cars worth INR 5.5 crore found new owners each day. In Mumbai alone, the spirit of Ganesh Chaturthi led to 16% of these sales, proving that fresh starts aren’t limited to just the start of the year.

While Diwali has always been the biggest festival for new car purchases, this year saw sales during Raksha Bandhan and Bhai Dooj closely mirroring those on Diwali. Interestingly, most cars were sold in Bengaluru during Diwali

This shift in consumer behaviour signals an evolving mindset; buyers are increasingly looking to mark important festivals with investments in safety, comfort, and family journeys. It’s no longer just about Diwali—the significance of these celebrations as milestones for upgrading to a better car is on the rise.

Karwa Chauth too saw a 42% increase in car sales compared to Bhai Dooj, as couples swapped more than just vows. Men opted to give their wives a better journey. This growing trend shows that couples are now opting for practical gifts that enhance daily life and create lasting memories—investing in shared experiences rather than just symbolic gestures. It’s a fresh, modern take on expressing love and care.

Fun Fact: This quarter, 1 in 5 car deliveries were proudly received by women during the season.

Interestingly:

• Favourite Colour: Silver led the pack, adding a sleek touch to every ride.
• Top Choice: Hatchbacks like the Maruti Suzuki Swift and Baleno remained the top picks for their compact size and versatility.
• Average Festive Spend: Buyers splurged an average of 5.8 lakhs, balancing style with practicality.

Crash ratings over cash savings: Safety takes the wheel in India’s car market”

Safety has become a top priority for over 70% of Indian car buyers, with 58% willing to pay more for enhanced features, driven by rising safety awareness and stricter regulations mandating essentials like six airbags, ESP, and ISOFIX.

Additionally, 28% of owners plan to upgrade from cars with low safety ratings, and 91% believe that incentivizing safer cars is the way forward.

Investment in value-added services (VAS) has surged, with buyers spending over INR 10,000 on extended warranties and tech upgrades, signaling a growing preference for cars that balance utility with luxury and comfort.

12% of buyers opted for dashcams and 45% for Roadside Assistance, underscoring a demand for security on every journey. Once considered extras, features like sunroofs, GPS, rearview cameras, and leather interiors have now become standard expectations, highlighting a shift toward a holistic car ownership experience—one that combines peace of mind with an elevated sense of lifestyle and convenience.

What’s up in non metro markets?

This quarter, Tier II and III cities drove a remarkable surge in pre-owned car sales. Trivandrum saw a 45% increase, and Mysore up by 20%, reflecting these regions’ enthusiasm for affordable yet stylish pre-loved vehicles. Cars like the Grand i10, Baleno, Kwid, Elite i20, and Tiago emerged as top choices in non metro markets, with their  better fuel efficiency, compact size, and affordable maintenance.

Tier II cities like Lucknow, Jaipur, Rajkot, and Agra joined the trend, embracing quality and value. Meanwhile, metro cities like Delhi, Mumbai, Bengaluru, Pune, and Hyderabad saw similar shifts indicating the growing confidence in the pre-owned car ecosystem, where buyers now see these cars as not only cost-effective but also a smart and sustainable option.

ASP increased by 85% too

In recent years, the Average Selling Price (ASP) of used cars has increased by 85%, driven by rising incomes and the appeal of premium features.

Entry-level cars priced around INR 4 lakhs are increasingly being swapped out for pre-owned vehicles that offer superior features and better value. This growth can be credited to the increase in disposable income and the greater value for money that pre-owned cars offer.

India transacted cars worth INR 800 crores online this quarter

This quarter saw a remarkable surge with transactions worth INR 800 crores on the CARS24 platform.

Thanks to the hassle-free, fully online process, people found it far more convenient to sell their cars on the platform. As a result, CARS24 reached a remarkable milestone of 4 cars sold every hour—a testament to the growing preference for digital convenience.

From compact to commanding: India’s love affair with sturdier drives

SUVs are the top choice for Indian buyers, with compact models like the Tata Nexon leading as a blend of power and style. SUV sales surged 15% QoQ, now making up 20% of total sales. Among the favourites, the Hyundai Creta remains dominant, Ford EcoSport is still popular despite being discontinued, while MG Hector saw a 4x increase, Nissan Magnite doubled its sales, and Tata Safari rose in demand, reflecting the trend toward durable, commanding vehicles.

Hatchbacks remain popular, though preferences are shifting—Maruti Suzuki Swift  has now been surpassed by Hyundai Grand i10 and Maruti Baleno as the top sellers of 2024. Maruti Suzuki’s market share dropped from 41% in 2022 to 33% in 2024, indicating changing consumer preferences.

Sedans are quietly regaining ground, now representing 21.2% of the market, with Hyundai holding 26% and Honda 10%. While SUVs are on the rise, hatchbacks and sedans continue to offer practicality and affordability.

Fuel preference

This quarter too, 85% of buyers opted for petrol, proving that convenience, cost effectiveness, familiarity and availability continue to drive decision-making. Additionally, petrol cars tend to have lower maintenance costs, making them a more budget-friendly choice. Most petrol vehicles were sold in Delhi-NCR. Interestingly, diesel still holds some popularity in cities like Bangalore and Hyderabad, but there has been a noticeable decline in its sales.

INR 300+ crores in car loans drive car ownership trends

Car financing is reshaping car ownership in India. This quarter, CARS24 disbursed INR 300 crores worth of car loans.

The average age of buyers has dropped from the mid-40s to the early 30s, with millennials leading the charge, eager to enhance their mobility and personal freedom. Women have emerged as key drivers in this financing wave, securing 19% of the loans reflecting their growing confidence in financial management and their increasing role in reshaping societal norms. Women are also getting loans approved faster and paying off their EMIs consistently, marking a significant shift towards independent mobility.

This quarter, CARS24 processed over 400 loan applications daily, with the highest reaching INR 14 lakhs for models like the Tata Harrier, while smaller loans, such as INR 1 lakh for the Alto K10, highlight accessibility across segments.

Notably, 20% of customers opted for zero down payments. Significant loan demand emerged from Tier II and III cities, with Ahmedabad, Jaipur, and Bhopal leading in disbursements, showing that financing is truly reaching the heart of Bharat.

The favorite choice among loan-takers remains the Hyundai Grand i10 and Maruti Suzuki Baleno with the average EMI hovering around INR 12,000 at an interest rate of 15%

This quarter marks a significant shift towards accessible car ownership, as loans continue to make mobility a reality for thousands nationwide, offering more options, flexibility, and empowerment.

CARS24 is present in more than 200 cities in India and is working towards making car ownership affordable, accessible to all.