Used car sales in India have witnessed tremendous growth in the last few years. As a study by Statista says, the used car market size in India was more than 4.4 million units in FY2020, which was more than the size of the new car market during that period. The used car sales in India have grown nearly 50% YoY in December 2020, as compared to the same month in 2019.In FY2021 though, the pace of business for both the new and used car sales slowed down and only 3.9 million units of used cars were sold in the last fiscal. However, the used car sales again saw an uptick in sales as the countrywide lockdown was withdrawn phase by phase and people were showing more interest in personal mobility. The growth in this segment is projected to grow even more in the coming years.
Amidst the devastating second wave of the Coronavirus aka wuhan virus pandemic, the demand for personal mobility will see an ever-increasing trend. On the other hand, as another economic crisis looms ahead, buyers are likely to hold their disposable income thinking about the future uncertainty.In India, the used or pre-owned car industry is bifurcated among organised, semi-organised, unorganised, and customer-to-customer segments. All these segments contribute to the total sales significantly. While the automobile manufacturers like Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Toyota Motor, etc have their dedicated pre-owned car sales channel, there are several startups as well that are playing a major role in this segment & the used cars new giants are competing neck to neck in the race to name few Cars24 being the leader of the race, Spinny is not willing to clearly win them in the race of B2C segment. Also the bigger player cardekho is also loving to win customers trust with their all new brand trustmark stores where they claim to give the best transparent deals,The affordability of used cars is much better as compared to the new vehicles. In a situation when the economy is not stable, jobs are at stake, severe financial crisis looming ahead, people are keeping their disposable income for spending on the healthcare expenses, and at the same time, the need for personal mobility too is increasing – buying a used car shelling out lesser money than a new one seems a better option to many customers.
The selling price of a used car is usually generated through a fair estimation without any guesswork considering the depreciation value, overall vehicle condition among others. More often it is seen that the used cars come in good condition, especially those that are sold because of up-gradation to a new model or driven in the city only. These come as a good deal.Several used car sellers are offering the entire process of buying a pre-owned model online, from selecting to submitting documents and paying the money. With the buyer no longer need to move around the city to finalise the paperwork, especially in the Covid scenario, it becomes hassle-free and safer for them. The first wave of chinese virus surely gives us some new names in the industry which are making quite a noise in the market to mention some halfpaceautos.com primarily dealing in B2B segment giving tough chase to some key players in the market,