New car market set for 9-11% CAGR
The pre-owned car market in India is expected to double in size from 4.1 million units in FY2022 to 8.2 million units in FY27, growing at a CAGR of 16% and increasing its lead by 1.7X over the new car market, according to an industry report released on 25 Nov 2022.
The new car market is also expected to witness healthy growth during 2022-27, growing at a CAGR of 9-11%, reaching 4.8 – 5 million cars by FY27, said the 6th annual edition of OLX Autos report done in partnership with CRISIL.
The pre-owned car financing market is expected to grow at a CAGR of 25% from Rs.360 billion to Rs.1,275 billion by FY27.
“Post pandemic, the Indian automobile sector has shown strong growth both in the new car as well as the pre-owned car market,” said Hemal Thakkar, Director, CRISIL Research.
“Increased preference for personal mobility, easing supply-side constraints, increased discretionary and a shift in product mix are contributing towards the sector’s growth.
“Our yearly study of the market with OLX Autos highlights these dynamic shifts alongside the move to digitally driven and organised players that are further supporting the fast-track growth of the used car market,” he said.
Urban markets drive the bulk of the demand for cars in India. “With 37% of the Indian population living in urban areas by 2025, we will see a sharp rise in disposable incomes and affordability for discretionary spending on personal mobility,” said Amit Kumar, CEO, OLX India. fiinews.com
