Operators in the used car business expect sales to rise as more people will prefer personal vehicles to public transport in the aftermath of the Covid-19 pandemic.

“With the Covid-19 pandemic, consumers will be more inclined to own a car as they will feel safer commuting in their personal cars than in public transport,” Gajendra Jangid, the co-founder of CARS24, told The Telegraph, over the phone.

CARS24 is a tech-driven start-up involved in the buying and selling of used cars. It was launched in August 2015 in Gurgaon expanding to72 cities in the country with 205 branches. It bought and sold 15,000 cars a month on an average before the lockdown and has a 3.5 per cent share in the highly unorganised market. While it buys used cars from consumers, it sells them through online auction.

Recently, a survey by the company among commuters showed 46 per cent of respondents to have lowered their budget for high-value purchases because of the global pandemic. But 50 per cent among them said they would buy second-hand cars once the lockdown was over.

The survey also said 22.5 per cent of the consumers who were contemplating buying a new car last year would now prefer to buy a pre-owned car. In non-metro cities, 41 per cent of the respondents wanted to buy two-wheelers. About 50 per cent of cab users in the pre-Covid times would now buy cars, while 15 per cent said they would buy two-wheelers. The survey interviewed 3,600 respondents in 11 metros and 37 non-metros.

Jangid is keenly observing China which is “three months ahead of us”.

“Slowly businesses are opening up in China and they are witnessing 70 per cent retail recovery. The dealership enquiries are up,” said the CMO. Iterating that car purchases will not be “aspirational purchases”, Jangid said: “These will be more utility driven choices and used cars have utility value.”

He predicted a surge for small cars, too. “There will be a demand surge for small cars, cheaper cars and back-up cars. Families which had single cars will now want a second car for those family members who would travel in public transport,” said Jangid.