UVs most searched among used vehicles in India: Google report

Used utility vehicles take 47%t share of all used car queries in India, becoming the primary driver of the online used car demand in India

Google India in association with Mahindra First Choice Wheels today launched a report, which said that utility vehicles were the most searched used car type on Google in India.

Used utility vehicles take 47 per cent share of all used car queries in India, becoming the primary driver of the online used car demand in India, followed by hatchbacks at 20 per cent and the remaining sedans and luxury.

This growth also matches with offline sales for sports utility vehicle at Mahindra First Choice, in their outlets across India, which has seen SUVs sales grow from 6 per cent to 10 per cent in the past 3 years.

The number of queries related to used cars on Google Search have grown 20 times in 6 years; with a 30 per cent in 2014. The used car buyers are increasingly relying on Internet for their research before they arrive at final decision. As many as 8 in 10 potential used car buyers starting their research from Google search seem to be undecided about which used car to buy, stated the report.

"Used car consumer is highly underserved in India as the industry is characterized by a lack of formal distribution and service networks. The industry suffers from a significant trust deficit between buyers and sellers. This is also reflected in the search behavior in India, there seems very low awareness as well as low curiosity to know about 'certification' or 'warranty' on used cars. We see a significant amount of queries for Certified used cars in developed markets like the US. This probably is a clue to the direction in which the market will evolve over the years as it gets more organized." said Gaurav Kapur, Industry Head for Auto vertical, Google India.

As per data available with Mahindra First Choice, proportion of first time buyers has declined while an increase has been registered in the "multiple car in the family" segment. However, the first time buyer still remains the largest category for a used car customer. Used car as the second vehicle in the household instead of a two wheeler is on an increase.

The study also revealed that, most number of used car searches come from Maharashtra, followed by South India, West Bengal, NCR, Uttar Pradesh and Punjab. In the used car searches, Honda is most searched used car brand on Google with Honda City taking the top slot for most searched used car.

A car is believed to be the second most important purchase/investment (after a house) done by an individual or a household, and hence a very involved decision with a significant amount of time spent on analysing and researching.

Unlike new cars search queries which show a bit of seasonality, the searches for used cars are consistent throughout the year. Only 16% of the used car searches are for specific brands, and 84% queries are generic queries indicating that the buyers get into the market with an open mind and finalise their purchase after analysing and researching all options, the report added.