Pre-Owned Luxury Car Industry Is Still Evolving, But Growing Steadily In India: Luxury Cart CEO

Luxury Cart, a rising name in India’s pre-owned premium automobile sector, is redefining luxury car ownership by offering end-to-end services and building trust in a still-evolving market. Spearheaded by Himanshu Arya, Founder and CEO, the company is working to streamline the buying experience through greater transparency, certified quality checks, and robust after-sales support.

“The pre-owned luxury car industry is still in the evolution stage, where it is expanding at a steady pace,” Arya tells Bizz Buzz in an exclusive conversation. He points to challenges like unorganized players, lack of proper documentation, and limited maintenance options as hurdles in consumer adoption. However, with a focus on certification, clear service records, and money-back guarantees, Arya sees growing acceptance. As digitalization and electric vehicle adoption gain momentum, Luxury Cart is shaping an omnichannel model to stay ahead of trends and consumer expectations—making luxury more accessible without compromising on the experience.

The pre-owned luxury car market in India is still evolving. What do you think are the biggest challenges in gaining consumer trust in this segment?

The pre-owned luxury car industry is still in the evolution stage, where it is expanding at a steady pace. Where the market is ripe with a lot of opportunities with rising organized players in the market, there are certain challenges that can deter consumer trust in the segment. There are a lot of small-time players in the market who lack long-term vision of customer satisfaction.

They do not offer after-sales service such as RC transfer/clean paperwork, etc., which severely compromises the overall experience for the customers. In addition to this, maintenance of the car is also a major concern for customers where they have to either rely on OEMs, which is very expensive, or resort to roadside mechanics, who are quite unreliable. Taking services from unorganized players raises a lot of questions around the quality and authenticity of the car, which makes it difficult for customers to choose pre-owned luxury cars. However, with more and more organized players coming into the market, the scenario is changing where they are working towards providing end-to-end services for pre-owned luxury cars.

Many buyers worry about the authenticity and condition of pre-owned luxury cars. How can the industry address these concerns and ensure transparency?

To address the concern around the authenticity and condition of pre-owned luxury cars, industry players should provide certification on the condition of pre-owned cars from an OEM or an equivalent third party. Considering that OEMs generally offer a 360-degree vehicle at an affordable cost, it can play a crucial role in building trust with the end consumers.

Likewise, to further boost product confidence among the users, the organized players in the pre-owned car industry have started offering a 5/15-day money-back guarantee to enhance customer satisfaction. Moreover, providing buyers with a complete service record of pre-owned cars drives transparency, which empowers the buyers to make informed decisions.

With the rise of electric vehicles and changing emission norms, how do you see the future of luxury cars in India? Will the pre-owned segment be affected?

Yes, definitely, looking at the surging demand for electric vehicles (EVs), they come with a lot of potential to bolster the pre-owned luxury car market as well. There has been a rising penetration of electric vehicles in the luxury car market, and a similar trend is also being witnessed in the pre-owned luxury car market.

On account of this, it is estimated that EVs will contribute to 25 per cent of overall sales in the luxury car space in the coming years, and it will drive the same level or even higher penetration even in the pre-owned luxury car segment. Considering that electric vehicles are cheaper to operate and maintain, it is very likely that EVs can boost the luxury car market in India.

Financing and insurance for pre-owned luxury cars can be tricky. What changes do you think the financial sector needs to make to support this industry better?

Financing options for pre-owned luxury cars have been there in the Indian market for a while now and have been providing customers value for money. To further enhance the offering, industry players can work towards matching the interest rate of pre-owned cars with that of new cars to drive the affordability of pre-owned luxury cars at the EMI level as well.

Moving ahead, making some major changes to the insurance process is also essential to provide the necessary support to the sector. Considering that there is standardization of insurance for both new as well as pre-owned cars, the premiums are not subject to ownership changes. At the same time, the provision of cancelling No-Claim Bonus, puts the next user in a disadvantageous position; hence, major steps should be taken to alleviate such challenges.

The luxury car ownership experience goes beyond just buying the car. What after-sales services do you think are crucial to ensuring a seamless experience for customers?

In order to create a seamless experience for the customers, the industry players should focus on enhancing the after-sales services. Here, facilitating hassle-free paperwork pertaining to RC transfer and insurance transfer, etc. in the stipulated time frame can provide the most basic support to the pre-owned car buyers. At the same time, explaining the service history or warranty status, insurance dates, etc., to the buyers can ease the process for them and elevate their overall experience in the process.

How has consumer perception of pre-owned luxury vehicles changed over the past decade? Do you think social status still plays a role in influencing buyers?

Over the past decade, the consumer perception around pre-owned luxury cars has changed substantially. Those who have already experienced pre-owned luxury cars have become strong ambassadors for the segment.

Indeed, social stigma still plays a role in influencing customers' decisions, who are afraid of judgments made by their friends and families on purchasing a pre-owned car. But the perception is changing with time, where the pre-owned luxury car market is thriving at a phenomenal rate, showcasing the ability to outpace the new luxury car market. Along similar lines, the industry has come a long way in the past decade, where the pre-owned car showrooms exhibit the same quality of cars as that of new vehicle showrooms.

Before venturing into the automotive sector, you had an extensive background in marketing. How has that experience shaped your approach to entrepreneurship?

During my previous experience in the marketing and tech sector, I came to understand the importance of experience at every touchpoint of customers. Solving the problems of the customers by catering to their needs can go a long way in driving loyalty for the brand. A similar tendency is seen in entrepreneurship as well that works on the grounds of identifying the gaps in the market to launch a superior product or service to alleviate the concerns of the customers. This can immensely help in building a loyal consumer base for the brand, giving it a competitive edge over others in the market.

Starting a business in a niche market comes with risks. What were some of the biggest hurdles you faced as an entrepreneur, and how did you overcome them?

Coming from a service background, the transition to the automobile sector has been full of new experiences and learning for me. Where the service sector required limited working capital to run a business, the automobile industry calls for huge working capital, and growth is generally capped by the investment capability into business. Understanding the dynamics of the industry, we are now looking forward to raising funds, considering that we have already established the base DNA of the organization.

With emerging trends in digital platforms and online car sales, do you think the traditional dealership model will become obsolete in the coming years?

Though the pre-owned luxury car industry has been undergoing digitization, both online and offline assets are evolving at the same pace. With customers still preferring offline visits for thorough inspection and physical touch and feel of cars, omnichannel is the way forward, and we at Luxury Cart are continuously working towards creating an omnichannel model that brings about the confluence of both online and offline assets.

What advice would you give to aspiring entrepreneurs who want to enter unconventional or luxury-driven markets in India?

I would like to advise all the aspiring entrepreneurs to understand their customers and market gaps thoroughly. This will come in handy for launching products or services that can alleviate the gap in the market and cater to the needs of the customers at the same time. Providing a seamless experience at every touchpoint for the customer, it plays a crucial role in building trust among the customers.