The Indian automobile industry is growing at a fast pace with the annual sales of cars expected to reach 9 million by 2020. The market for pre-owned or used cars in India has been on a considerable rise.
The growth story
Buyers today have realised the positive value equation of pre-owned cars. Pre-owned cars provide higher flexibility to the following buyers who wish for a Maruti Suzuki Swift used car in Bangalore
- First Time Buyers: For some people it is dream to own a particular car. This dream can be fulfilled as these buyers and choose from a wide variety of models and variations and choose the one that suits them at a fair price, that is, at a price way lower than the original price
- Second car buyers: A lot of families in India require a second car. Therefore, instead of buying a new car, they opt for buying a second hand car. This fulfils the purpose of the families and also offers them an economically viable option.
- Buyers looking for an Upgrade: These buyers are looking for an upgrade from their smaller or 2 wheeled vehicles. Buying a second hand car allows them the opportunity to move from a two-wheeler to a four-wheeler without hampering the budget to a great extent.
Current state of the Market
The current state of the used cars market in India is seeing an uptrend. The current ratio of every new car sold to the number of old car sold is 1:1.3 and expected to rise to 1:2. This is because the new cars available today have improved due to the technological advancements. The old cars are usually not that old as they haven’t been driven over large distances, even if they have, they are relatively easy to maintain.
The used car market in India is expected to grow by a CAGR of 20% in the next five years. Currently at 750 organised used car outlets in India, It is expected to grow to a whopping 4000 outlets.