India Pre-Owned Car

India Pre-Owned Car

India Pre-owned cars market has shown a robust growth in the recent years. Pre-Owned cars are second-hand cars with some usage by the first buyers and are listed on the market for further purchase. These vehicles due to the depreciation and launch of new models of later generations are quite affordable and provide a value-for-money option for buyers. Some of the key factors attributed to the growth are higher demand for second-hand cars due to their economical pricing as well as a year-on-year increase in the prices of cars across the country. Additionally, the pre-owned car market has also benefitted from the standardization and online emergence of platforms with comprehensive checks for vehicles to reduce fraudulent activities.

The Pre-Owned Car Market is expected to grow at a significant rate of around 13.95% during the forecast period (2024-2032). One of the key factors that has supported the demand for pre-owned cars in India is the higher number of cars being sold in the country and people changing their cars in fewer years. With the ease of loan disbursal and the launch of new models with upgraded functions, people are often buying new vehicles making a huge number of vehicles to be added in the second-hand cars market. According to Auto Punditz, the total sales of cars in India during September 2024 was 3,58,879. The sales of cars across the country have grown year by year further resulting in the rise of second-hand cars.

Additionally, the demand pricing for cars in recent years has exponentially increased due to the increase in the cost of manufacturing vehicles. This phenomenon has impacted the new car purchasing ability of price-sensitive buyers and forced a large set of buyers to move towards pre-owned vehicles. Considering the shifts in the Indian market the demand for pre-owned cars is further anticipated to grow during 2024-2032.

• Based on Vehicle type the India Pre-Owned Car market has been segmented into hatchbacks, sedans, SUVs, and others. The SUV segment has held a sizable market due to the rising inclination of customers towards vehicles with high ground clearance and road presence, SUVs also offer better stability and safety on the road so a large number of customers are attracted to this category. Some other segments such as Hatchback, MPV, etc., are also in high demand as they offer a cost-effective solution to the price-sensitive market of India. These cars offer better fuel economy and improved driving dynamics making them suitable for the city driving conditions.
• Based on Vendor Type, the India Pre-Owned Car market has been bifurcated into Organized and Unorganized. Of these Unorganized category has held a sizable market share owing to its extensive presence in major urban centers of the country as Delhi NCR, Mumbai, Bengaluru, Chennai, Kolkata, Ahmedabad, etc. These are held by long-run garages and shops specifically dealing in second-hand cars. However, with the growing standardization and warranty-backed sales with comprehensive checks of the vehicles, the organized category is anticipated to exhibit remarkable growth in the coming years.
• For a better understanding of the market adoption of the Pre-Owned Car market, the market is analyzed based on its country-wide presence in regions such as North India, East India, West India, and South India. North India has held a sizable market share among these due to rising urban centers, customers requiring cars for urban commutes, and ease of purchase due to credit availability. Furthermore, the region has also witnessed fast growth of urban centers due to which the disposable income in the region has notably grown further promoting the demand for pre-owned cars.
• Some of the major players operating in the market include Cars24, Maruti True Value, Mahindra First Choice Wheels, Hyundai Promise, Honda Auto Terrace, Toyota U Trust, Big Boy Toyz, BMW Premium Selection, Audi Approved Plus, and Mercedes-Benz Certified.