Used Car Market in India: Past, Present

and Future

Index:

• Brief History• Present Condition • Projected Future • Important Statistical Data And Supporting Facts

Brief History

01 Used Cars Market: A Quick Flashback• During mid 90’s people were quite skeptical of buying used cars from car dealers because of their unorganized nature.

• They mainly preferred to purchase used cars from their friends or acquaintances: above 58% of used cars were purchased within this model. Unorganized sector of local dealers accounted for a tad above 38% of total units purchased.

• Introduction of Maruti True Value in 2001 brought what can be termed as a “silent revolution” in used cars market. The brand incorporated organized structure of selling pre-owned cars.

Present Condition

01 Steady Present, Promising Future• Though quite popular, the pre-owned car market in India is still at an initial phase if compared to US and UK.

• According to a survey the market in UK and US is much ahead than India. Statistically speaking it is 1:3 and 1:2 in US and UK respectively, as compared to India.

• On a positive side, it also implies that the market still has many untapped opportunities.

• The apparent shift in the lifestyle of middle income group and increase in pay scale has resulted in exceptional and steady growth and ensures a promising future.

02 Brand Wars: Who’s on the Top

• Being the pioneer of organized pre-owned car market and consistently delivering quality, performance and customer satisfaction, Maruti has retained its numero uno position in used car market.

• Other brands in the market are Tata, Hyundai and Honda. However, they are still way behind Maruti.

Projected Future&

Important Statistical Data And Supporting Facts

01• Another revolution in the market was brought about by online marketplaces selling pre-owned cars.

• Apart from eliminating tedious legwork, they also made it easy for the clients to sort the cars according to different features like budget, model, manufacturing year, brand etc.

• Instead of going from one dealer to the other, clients can now easily select from a large category of cars using a few clicks of mouse.

• Along with competitive prices, another benefit of such online marketplaces is that they give the client a sufficient time to “do homework” before finally meeting/contacting the seller.

Digital Market Revolution

02 Used Cars: Best for Indian Families• Indian families are characterized by their big size. So they need a big car (6-Seater or larger).

• However, the working population prefer 2 small cars (4-seater) instead of a big car so that one car can be used for commuting to the workplace while the other car can be used by other members of the family. • With a wide variety of considerably economical choices across different categories people prefer to buy the used car that are available at a fraction of the new ones.

03 Used Cars: Best for Indian Families• Indian families are characterized by their big size. So they need a big car (6-Seater or larger).

• However, the working population prefer 2 small cars (4-seater) instead of a big car so that one car can be used for commuting to the workplace while the other car can be used by other members of the family. • With a wide variety of considerably economical choices across different categories people prefer to buy the used car that are available at a fraction of the new ones.

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