Used Cars Market in India

The aspiration to buy a car has been prominent in India. More than comfort, it’s seen as a sign of luxury and as a status symbol here. But before we get there, most of us really want to gain the confidence to ride on the roads and get a hang of the entire art of driving a four-wheeler.

That’s why for most of us, our first cars are pre-owned. We feel it’s less risky that way and there are still some things to be considered before buying a pre-owned car. But how much do we know about the used-cars market in India?

Let’s find out.

The Pre-owned Car Market in India

Why Do People Sell Their Car?

For you to buy a pre-owned car, there should be someone willing to let go of their old ones. But what factors push them to sell their cars?

The Factors

• 40% of the car owners upgrade to a new car
• 16% share their cars have problems
• 11% intend to replace their current car with another pre-owned car
• 11% have the tendency to frequently change their cars and more

The Market

India’s pre-owned cars market stood at around 4mn units in the year 2019. This is anticipated to reach up to 7.2mn units by 2022.

There is no proper governing authority as far as pre-owned cars market is concerned. We have a very mixed market, where different segments overlap each other. Look at this:

• 18% of the market is organized
• 34% is semi-organized
• 16% of the car dealings are unorganized
• And 32% of the transactions are customer-to-customer

An average Indian car buyer gets information about pre-owned cars from multiple sources including friends, relatives, mechanics and garages, magazines, dealers, mass media, internet and classifieds, finance companies and more.

However, the biggest influencers are

• Spouse
• Friends
• Parents
• And others

Check out the infographics below to look at the breakdown of each and to find out what pushes an average consumer to make the purchase. This is a very interesting infographic we had fun coming up with.

Share this with people in your circle as well.