With increasing market trends, the market of “Used Car” is a big one in the Indian Economy and covers a major share. As per the market overview and reports, the Indian Used car market was valued at USD 32.14 billion in the year 2021 and is expected to reach USD 74.70 billion in 2027. It is also reported that COVID-19 had less or no impact on the industry. With the constantly changing environment, an individual wants more freedom in terms of automobiles with less expense. Everyone wants to travel by car and owning a new one for all is not everyone’s cup of tea. In addition, with the growing population, everyone needs mobility in their vehicles. Although the market for new vehicles had dropped when COVID-19 hit the nation. The business is worth doing and we can discuss some aspects related to this market.
What share of the market is the Used car market in India?
An Estimate 4.4 million used cars were sold in India in FY 2021-2022. This is what the report says from online sources. Yes, we all know that the nation is just out of the pandemic so the data still shows the stats from last to last year.
Is the Used car business profitable in India?
Cars can be brought from their owners at the lowest prices and can sell later at high prices. This cycle will be profitable from the context of a used car.
Segments of the Used Car dealership Industry:
- The Inability of the customers to buy new cars leads to growing sales of increased used cars volume.
- Quality and reliability matter a lot when it comes to used cars and people often purchase the same.
- Preferences are increased of a customer to get upgraded from two-wheelers to at least used cars. These all points lead to the increment of the used car industry.
External factors affecting the used car dealership industry:
- Per Capita Disposable income: When customers have more money, they prefer to send on used cars in terms of affordability and reliability.
- Price of new cars: Buying a used car is more affordable for many as this is a good alternative to purchasing a new car.
- Crude oil price: High prices of oil tend to decrease the sale of used and new vehicles as well.