The Pre-owned car market is booming throughout the world and India is not an exception to the trend. As per a report titled “India Used Car Market – Growth, Trends, and Forecast (2020 – 2025)” released by Reportlinker.com, the used car market in India registered a whopping growth that went beyond the 4 million units market in Financial Year 2018. The revised rate, which went down from 28% to 12-18%, is one of the major stimulants for the accelerating growth of the used car market.
Reasons for Growth of Used Car Market
The Indian automotive industry entered the BS-VI era in April 2020. As a result, the value proposition of the second hand car in Kolkata as well as other places of India is estimated to register a step growth as the brand new vehicles will cost more due to additional costs of high-end technology.
Some factors including standardized dealership experience, high financial cost and fair price issue may interfere into the booming growth of the used car market. Maruti, Hyndai, Mahindra etc are the key players in the used car market.
Shift in Focus: The elite car manufacturers are now more focused on cutting down the production of diesel cars. For example, Maruti Suzuki decided to exit the diesel car industry by April 2020. As a result, the compact diesel car market is expected to grow in near future unless the diesel cars suffer a huge backlash for environmental reason.
Key Market Trends: The used car market in India is more organized than ever. The organized channel is supposed to witness a higher Compound Annual Growth Rate (CAGR). The organized segment in the pre-owned car market across the county is estimated to register a CAGR of 22.79% during 2020-25.
The organized sales channel has experienced a massive growth in the recent past. Increased sales of pre-owned cars in metro cities and mushrooming of ecommerce portals are contributing to the robust growth.
More Players: Majority of the Original Equipment Manufacturers have entered the second hand car market and those, who did not do in the primary stages, are now also stepping into the industry. Prominent OEMs in India, including Maruti Suzuki, Hyundai, Toyota and Mahindra have their own second hand car network. Majority of the players with a strong foothold in India’s used car market have witnessed a whopping surge in sales since 2017.
Consumer-Friendly Approach: Consumers are always concerned about transparency in deals, convenience and safety, which minimizes the risk of buying a car that was someone else’s. With all these guaranteed, the organized used car market is surely enjoying a competitive edge if compared to over the unorganized sector.
Takeaway Messages
Buying a used car is a good choice for those who don’t have a big financial cushion to afford a new purchase. And with India’s used car market more organized and registering rapid growth over years, buying a car from a reputed second hand car showroom in Kolkata will dilute all your doubts and give you a peace of mind.
