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India Used Car Market Research Report: By Sector (Organized, Unorganized), Vehicle Type (Medium, Small, Large), Sales Medium (Offline, Online) – Industry Trends and Growth Forecast to 2030

  • Published: April 2021
  • Report Code: AT12179
  • Available Format: PDF
  • Pages: 147

Market Overview

The Indian used car market generated $18.3 billion revenue in 2020, and it is expected to grow at a CAGR of 14.8% during the forecast period (2021–2030). The demand for pre-owned cars in the country is mainly driven by the surging consumer focus on high-quality vehicles that are available at an affordable price and increasing preference for imported cars. Moreover, the improved quality of used cars after undergoing extensive servicing by the dealers is creating a new perception among consumers that they will last a while.

The COVID-19 pandemic, specifically the multiple lockdowns imposed in its wake, has affected the used car market in India. Companies in the market were hit hard by the pandemic, which has resulted in ceased compensation to workers and a reduction in international trade. The outbreak has disrupted the industry, particularly in terms of the consumer demand, communication, operations, and supply chain. Furthermore, the consumer purchasing power has greatly reduced as a result of the coronavirus-induced economic recession, which, in turn, has hit the sales of used cars.

India Used Car Market Outlook

As Organized Players Offer Value-Added Services, They Are Expected to Witness Higher CAGR

The organized sector is projected to witness the higher CAGR during the forecast period. The higher propensity of buyers to shop for certified vehicles from established dealers makes vehicle certification an important differentiating factor in this market. In addition, the increasing use of online portals by both sellers and buyers in the country is expected to result in the strong growth of the organized sector.

Offline Category To Dominate Market, as Consumers Prefer Buying Used Cars only after Personally Seeing Them

The offline sales medium is expected to dominate the market throughout the forecast period, as it includes traditional brick-and-mortar retail establishments that operate from a physical storefront. This is mainly due to the high consumer preference for buying a used car from a known dealer, as a good consumer experience at dealerships is critical for completing the sale. Furthermore, it is important for consumers to take a test drive and go through various options before buying the car from the dealer.

Maharashtra Held Largest Market Share in 2020

In terms of value, Maharashtra held the largest share in the used car market in India in 2020. The strong depreciation value of luxury vehicles, rapidly rising young population, increasing disposable income of customers, swift urbanization, and surging internet penetration in non-metros are some of the main factors driving the growth of the market in the state. In addition, the lower prices and easily availability of used cars, coupled with the favorable business environment and strong growth opportunities in the state, are driving the state’s market for used cars.

India Used Car Market Geographical Insight

Rising Adoption of Online Marketplaces and Classifieds by Used Car Dealers Key Industry Trend

In India, online retailing has emerged rapidly over the past few years on account of the digital revolution in the country. With the Indian used car market going online, it has become more convenient for buyers to search for pricing and vehicle details. In addition, key players in the market are continuously investing to further expand and have an online retailing and classifieds presence, or offline presence. For instance, in August 2020, OLX Group announced the launch of its new franchisee-led pre-owned car retail offering in India, where dealers and consumers can sell and buy pre-owned cars, respectively. The franchise-led model will be branded as “OLX Autos”. Through this, dealers will get access to the company’s integrated-omnichannel store experience, where they will be able to offer pre-owned cars across the company’s online marketplace as well.

India Used Car Market Drivers

Increasing Penetration of Organized Sector with Certified Used Vehicles To Drive Indian Used Car Market

The market has been dominated by unorganized players in India till now. Since the parties involved are individuals and not organizations, it has been hard to establish trust among them. This is leading to the increasing penetration of organized players, including original equipment manufacturers (OEMs) and large dealers, such as Cars24 Services Pvt. Ltd., OLX Autos by OLX Group, and Quikr Cars by Quikr India Private Limited. As the involvement of OEMs and other organized players increases, consumers will be further encouraged to buy second-hand cars, due to a higher sense of trust and reliability. These organizations also offer free towing and other services at dealerships to provide convenience to customers.

Market To Witness Exponential Growth with Entry of Pre-Owned Luxury Car Dealers

India has a huge market potential for used luxury vehicles; however, luxury cars’ penetration in the country is low. But, leading luxury car manufacturers and used luxury car dealers are expanding their operations in India, betting on the market’s potential. For instance, Big Boy Toyz Pvt Ltd. (BBT) is a luxury marketplace for pre-owned luxury and and imported cars in India. The company offers used cars from the majority of the luxury and premium vehicle OEMs, such as BMW AG, Lexus by Toyota Motor Company, Cadillac by General Motors, and Jaguar and Land Rover by Tata Motors Limited.

India Used Car Market Report Coverage
Report Attribute Details
Historical Years 2015-2020
Forecast Years 2021-2030
Base Year (2010) Market Size $18.3 Billion
Market Size Forecast in 2030 $70.8 Billion
Forecast Period (2021-2030) CAGR 14.8%
Report Coverage Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; State Breakdown; Impact of COVID-19; Companies’ Strategic Developments; Company Profiling;
Market Size by Segments By Sector; By Vehicle Type; By Sales Medium; By State
Market Size of Geographies Maharashtra; Uttar Pradesh; Karnataka; Tamil Nadu; Delhi
Secondary Sources and References (Partial List) Automotive Component Manufacturers Association of India (ACMA); Automotive Research Association of India (ARAI); Bureau of Energy Efficiency (BEE); Department of Heavy Industry (DHI); Federation of Automobile Dealers Associations (FADA); International Council on Clean Transportation (ICCT); International Organization of Motor Vehicle Manufacturers (OICA); Society of Indian Automobile Manufacturers (SIAM)

 

Market Players Involve in Facility Expansions to Gain Significant Position

The Indian used car market is fragmented due to the presence of a vast number of unorganized players. Some of the major organized players in the market are Cars 24 Services Pvt. Ltd., OLX Group, Big Boy Toyz Pvt. Ltd., Quikr India Private Limited, CarDekho.com, Truebil, Droom Technologies Pvt. Ltd., Maruti Suzuki India Limited, and Mahindra & Mahindra Limited.

In recent years, players in the market have involved themselves in facility expansions in order to attain a significant position. For instance:

  • In February 2021, CarDekho.com planned to open stores in a larger format in selected metro cities, including Tier-I and Tier-II cities, in India. The start-up is looking forward to ramping up its infrastructure after raising significant funds in its upcoming round. It will eventually use the new infrastructure to boost the sales of second-hand cars, as well as new cars, to improve its revenue.
  • In October 2020, Skoda Auto India Ltd. entered the used car industry in India with the aim to offer a one-stop shop to buy, sell, and exchange certified multi-brand pre-owned vehicles to prospective buyers seeking cost-effective personal mobility solutions.

Some Key Players in India Used Car Market Are:

  • Cars 24 Services Pvt. Ltd.
  • OLX Group
  • Big Boy Toyz Pvt. Ltd.
  • Quikr India Private Limited
  • CarDekho.com
  • Truebil
  • Droom Technologies Pvt. Ltd.
  • Maruti Suzuki India Limited
  • Mahindra & Mahindra Limited
  • Honda Motor Co. Ltd.
  • Ford Motor Company
  • Toyota Motor Corporation
  • Tata Motors Limited

Market Size Breakdown by Segments

The India used car market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Sector

  • Organized
  • Unorganized

Based on Vehicle Type

  • Medium
  • Small
  • Large

Based on Sales Medium

  • Offline
  • Online

Geographical Analysis

  • Maharashtra
    • By sector
    • By vehicle type
  • Uttar Pradesh
    • By sector
    • By vehicle type
  • Karnataka
    • By sector
    • By vehicle type
  • Tamil Nadu
    • By sector
    • By vehicle type
  • Delhi
    • By sector
    • By vehicle type
Frequently Asked Questions About This Report
What will be the CAGR of the Indian used car market during 2021–2030?+
Why is offline the more-popular sales medium in the Indian used car industry?+
Why will Delhi witness the fastest growth in the Indian used car market?+
What is the key trend in the Indian used car industry?+
Why is the Indian used car market fragmented?+
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