The India used car market will touch USD 99,707 million, advancing at a 17.50% compound annual growth rate, by 2030.
The advancement in the industry is primarily because of the increasing internet penetration, which provides used car information easily available.
Moreover, India is one of the fastest-growing industry for large and premium automobiles, making it appealing for organized second-hand vehicle businesses.
India Used Car Market
For example, Quikr India Private Limited, CarDekho.com, and OLX Group offer online platforms to enable consumers to be aware of the availability and price of used cars near their locations. This creates the overall process of purchase quicker and simpler, without any requirement for unwanted negotiations or prior appointments with dealers.
The online category, based on sale medium, will advance at a higher rate in the years to come. This is because digitalization has lessened the requirement to contact the dealer to search for or purchase vehicles.
Moreover, consumers can simply access information and speedily interact using their smartphones or computers. As a result, the easier research and shopping through the online mode, along with the surging internet penetration will further boost the progression of this category in the years to come.
The offline category accounted for a considerable share in recent years, owing to the high customer fondness for purchasing a used car from a recognized dealer.
Based on sector, the unorganized category accounted for the largest India used car market share in recent years. This is because most of the transactions are done by people trying to sell or buy vehicles.
However, the parties involved in the transaction of buying used vehicles are not organized individuals, and it is difficult to create trust between the involved parties. This creates the opportunity for organized industry players, such as large companies and OEMs.
Moreover, due to their increasing involvement, customers will be encouraged to purchase second-hand vehicles through them, because of the growing reliability and trust sense. As a result, the organized category will advance at a faster rate, of 19.6%, in the years to come.
Maharashtra accounted for the largest share in recent years. This is attributed to the easy availability and lesser prices of used vehicles, as well as the advantageous operating conditions and high opportunities for growth for dealers in the state.