Pandey notes clear preference for used cars among consumers
The Indian used-car market is projected to grow and expand at double the rate at a CAGR of 19.5% till FY2026-2027, according to the IndianBlueBook (IBB).
It was valued at US$23 billion in FY2021-2022, according to the 5th edition of the FY2021-2022 IBB report presented by car&bike and Das WeltAuto on 20 Sept 2022 in Mumbai.
India’s used-vehicle industry is currently transitioning from an unorganized setup, where transactions happen via roadside garage mechanics, small brokers and between car owners, to an organized system with more players entering the market.
As per the report, among the leading factors that will contribute to this growth of the used-car market in the next five years are a rising middle-class and young population; rising disposable incomes; technology driven transparency, convenience, simplicity of transactions; availability of certified cars; decrease in the average tenure of ownership for cars and two-wheelers due to larger disposable incomes; the launch of new models within shorter time frames; dealer trade-in bonuses and buyback assurances.
The growth is also expected to be driven by the emergence of organized online and phygital used car platforms amid a surge in the demand for personal mobility and because of favorable government support.
“With the changed business landscape following the pandemic, there is a clear preference for used cars among consumers across the country,” said Ashutosh Pandey, CEO & MD, Mahindra First Choice.
“Used cars, once considered a compromise, are now making their way into the consideration set of consumers when they think about purchasing a car,” Pandey said.
The top five reasons why Indian consumers opt for a used vehicle are:
Need for mobility for personal and business growth;
Budget constraints and macro-economic uncertainty;
Progressive industry players offering refurbished, certified, high-quality cars with warranties;
Digital & AI led transformation increase convenience, trust and transparency;
Value for Money nature of used cars compared to new cars, the report said. fiinews.com
