Petrol, Diesel or CNG: Which Used Car Does Hyderabad Prefer?

Telangana has one of the smallest used car markets in India, accounting for 5.4% of used car sales. Most of the used car sales in Telangana originate in Hyderabad which has a strong preference for petrol and diesel cars. 

Hyderabad ranks fourth on the list of the most traffic congested cities in India. This issue factors majorly in the used car buyer’s decision besides body type, transmission preferences and fuel preferences. It is also one of the bigger reasons why car buyers prefer petrol used cars. There are other factors as well, which we will discuss in this article. 

Used Car Fuel Trends in Hyderabad: Petrol Is A Safe Bet

With data taken from CARS24 sales figures and CARS24 Gears of Growth report, we have compiled a comprehensive outlook of Hyderabad’s used car ecosystem. Here’s what we found:

Key Takeaways From The Data

• Petrol remains the fuel of choice for most used cars sold in Hyderabad. 
• The preference for used petrol vehicles is majorly due to the heavy traffic congestion in Hyderabad.
• Hyderabad has a higher acceptance of used diesel passenger vehicles.
• Hatchbacks are the most preferred mode of transport though Sedans and SUVs are popular as well. 
• Like other metros in the South, the number of used CNG cars in Hyderabad is negligible
• The underdeveloped CNG infrastructure in Hyderabad contributes to the low demand for used CNG cars. 

Do Fuel Types Affect Resale Value In Hyderabad?

Yes, fuel types have a correlation with resale value. Following the implementation of BS6 norms most carmakers transitioned to petrol-only offerings while a limited number provided CNG options. However, used car buyers in Hyderabad are avoiding used CNG vehicles due to the limited CNG infrastructure and show preference for petrol cars instead leading to more demand.

• There is a high demand for used petrol and diesel cars leading to good resale value. 
• The demand for CNG vehicles though is almost negligible. 
• Like Bangalore, Hyderabad has a significant market for used automatic cars.

• Automatic cars with petrol engines are preferred leading to more demand for them. 

   

Body Types and Fuel Types: The Correlation

Like other cities, hatchbacks are the most popular body type in Hyderabad’s second hand car market while used SUV sales are catching up to sedans. Here’s how body types influence fuel preferences in Hyderabad. 

Hatchbacks:

A high percentage of used car buyers in Hyderabad prefer petrol hatchbacks while a few opt for diesel hatchbacks. The number of CNG hatchbacks is almost negligible compared to petrol and diesel hatchbacks, due to the lack of CNG fuel filling infrastructure. Used petrol, diesel and CNG hatchback sales have shown remarkable stability over the past two years.

Sedans:

An almost similar number of used sedan buyers in Hyderabad opt for both petrol and diesel powered sedans. Used sedans in Hyderabad also have the lowest percentage of CNG vehicles compared to other body types. According to the data from the previous couple of years, the number of petrol powered sedans is on the rise. 

SUVs: 

As expected, diesel SUVs constitute a majority of used SUVs in Hyderabad though the difference between petrol and diesel SUVs is quite low. Also, going by the previous two year’s sales data, the sale of petrol SUVs is gaining traction while the sales of diesel SUVs are dropping. 

Also like other southern states, the sales of CNG powered SUVs and MPVs in Hyderabad are almost negligible. 

Petrol remains the most preferred fuel in Hyderabad while diesel follows closely behind. The demand for used CNG vehicles in Hyderabad is negligible irrespective of body style. 

Reasons behind used petrol vehicles being more popular in Hyderabad?

Several reasons contribute towards the demand for petrol powered used cars in Hyderabad. Here are some important ones:

• Second hand petrol cars are more widely available than diesel or CNG cars and are more popular owing to their more affordable price point.
• Petrol cars offer the benefits of high reliability and affordable maintenance costs. 
• Drivers prefer petrol vehicles in a congested city like Hyderabad because they are easier to drive and automatic transmission equipped petrol vehicles are readily available. 
• The vast number of petrol pumps in Hyderabad and across India is one of the prime reasons for the acceptance of petrol powered vehicles. 
• Used petrol vehicles also pass stringent emission tests, which are mandatory in a metro city like Hyderabad, with relative ease. 

Most Popular Used Cars in Hyderabad, Fuel Wise:

Hyderabad boasts of a high percentage of used petrol cars as well as a significant number of used diesel vehicles. A weak CNG infrastructure means that Hyderabad has one of the lowest number of used CNG vehicles. 

The Maruti Suzuki Alto is the most popular petrol powered used car in Hyderabad the Swift is the most popular diesel. The Maruti Suzuki Wagon R is the best selling used CNG hatchback. 

Petrol Cars: 

Maruti Suzuki and Hyundai hatchbacks dominate the used petrol car scene in Hyderabad. The Maruti Suzuki Alto is the most popular used petrol car in Hyderabad followed by the Hyundai i10. India’s favourite used hatchback, the Swift, is the third best selling hatchback here. 

Diesel Cars:

Sedans and SUVs dominate the top 5 best selling diesel car list in Hyderabad. While the Swift diesel is the most popular in other cities, the Ford EcoSport SUV is an interesting addition to the list. Diesel vehicles like the Hyundai Verna sedan and Mahindra XUV500 SUV also appear on the list. 

CNG Cars: 

Like other cities, the top 5 best selling used CNG cars in Hyderabad also are from Maruti Suzuki thanks to it having the largest portfolio of CNG cars. The Wagon R tops the list while MPVs like the Ertiga and Ecco are the fourth and fifth best selling CNG vehicles.

Conclusion:

Despite the ongoing technological advancement in alternative fuels, petrol, diesel and CNG remain mainstream, powering a majority of new and used cars in India. Petrol plays a major role in propelling Hyderabad’s used car ecosystem. 

Compared to other metros, Hyderabad has a smaller used car market, partly due to space constraints that contribute to narrow roads and heavy traffic. As a result, petrol hatchbacks dominate Hyderabad’s used car landscape. While the city has a significant number of used diesel vehicles, buyers are increasingly preferring petrol models, particularly in the SUV segment.

A lack of proper CNG infrastructure in the South has resulted in dismal sales of CNG vehicles which are a major deterrent for buyers who wish to switch to the cheaper fuel. As long as this issue remains unsolved, petrol vehicles will continue to drive Hyderabad’s used car sales.