The total size of the Indian used car market was USD 23,355.3 million in 2021, and it will power at a rate of 17.50% in the years to come, to reach USD99,707 million by 2030, as stated by a market research company, P&S Intelligence.
The offline category had a considerable share in the industry in the recent past. This is mostly as a result of the high consumer preference for purchasing a used car from an acknowledged dealer.
The Indian used car market is observing the increasing acceptance of online retailing. Urbanization, Internet access, and development of the telecom infra have all contributed to an enhanced flow of knowledge amongst customers.
Also, used car buyers frequently sell vehicles online, to make the entire process quicker and simpler, as both the buyers and sellers complete most of the paperwork and negotiations through the online mode.
With the growing online industry, it has turned out to be more suitable for buyers to research pricing and details of the vehicle online.
This powers the penetration of organized players, as well as OEMs and large businesses. As their involvement surges, customers will be fortified to buy second-hand cars, as a result of the growing sense of reliability and trust.
Consequently, the organized sector will have a faster growth, of 19.6%, in the years to come.
These companies bid free towing and other services at the dealership, to lure other customers. These value-added services and assistances are helping the organized players in the industry increase their share and win the trust of the customers, which will boost the demand in the industry.
The high depreciation rate of luxury vehicles has a twofold positive impact on the industry. The reduction of the resale value of a vehicle surges the requirement for it, as a result of the inverse relationship between demand and price.
