Published: April 2021 | Report Code: AT12179 | Available Format: PDF | Pages: 147
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.
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.
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.
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.
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.
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.
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.
|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)|
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:
The India used car market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.
Based on Sector
Based on Vehicle Type
Based on Sales Medium
The CAGR of the market for used cars in India during 2021–2030 will likely be 14.8%.
Most buyers in the Indian used car industry prefer the offline sales medium as they deem it important to physical see, inspect, and test drive the car before purchasing it.
The fastest growth of Delhi in the market for used cars in India can be attributed to its vast population, high market growth potential, and availability of used cars at the lowest prices.
The major Indian used car industry trend is the adoption of classifieds and online marketing strategies by dealers.
The fragmented nature of the market for used cars in India is because most of the sellers are individuals, not established organizations.
Our dedication to providing the most-accurate market information has earned us verification by Dun & Bradstreet (D&B). We strive for quality checking of the highest level to enable data-driven decision making for you
Our insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights
With 24/7 research support, we ensure that the wheels of your business never stop turning. Don’t let time stand in your way. Get all your queries answered with a simple phone call or email, as and when required
We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws