India Used Car Market By Vehicle Type (Hatchback, Sedan, SUV/MPV), By Fuel Type (Petrol, Diesel, CNG, Hybrid, Battery Electric), By Sales Medium (Offline, Online), By Vendor Type (Organized, Unorganized), By Sales Channel (Dealerships/Broker, C2C), By Top State/Union Territory, By Region, Competition, Forecast & Opportunities, 2018- 2028F
The India Used Car market is expected to grow at a robust rate in upcoming years owing to growing middle class income, transparency, and increasing organized companies in the market.
The modern start-ups in India that have both online and offline presence are able to grow their customer base in major cities and also in tier 2, tier 3, and tier 4 cities. Customers can easily browse the automobiles and purchase used cars after thorough inspection. Through intensive marketing campaigns emphasizing best-in-class price and service, new companies such as Cars24, OLX group etc. have increased customers database for their products. Players such as Mahindra First Choice are benefiting from this trend toward organized channels by achieving solid double-digit growth.
In 2021, Covid-19 continued to have an impact on a number of industry sectors. The auto industry has been among those most severely affected by this. The post-pandemic slowdown and other major concerns, including labor shortages, difficulty with the country supply chain, and the switch to BS6, are still affecting the new-car industry's recovery. Since the outbreak, the secondhand automobile industry has expanded. Despite the economic slowdown and other external factors that have hampered the automobile industry, the used-car business has showed a considerable rise in demand and high growth rate. Customers are certainly in favor of used vehicles, and the difference in sales between new and used vehicles is reducing dramatically.
Comparatively Low Cost of Used Cars
A growing middle class, a young population, and an increase in the number of certified used car companies are some of the key elements expected to contribute to the expansion of the used-car market during the forecast period. Additionally, by reduction in the used cars overall cost through dealer trade-in incentives, buyback guarantees, and the introduction of new models more frequently, used car demand progressively increases in past few years. A used car's price is roughly 25% to 50% less than a new one, making the price-performance ratio of a used car superior to a new one. Furthermore, when purchasing a used automobile that has been driven for a year, the cost of used cars does not fluctuate significantly. The subsequent value preservation rate for the used car is expected to increase the demand during the forecast period and attract more customers.
Increasing Disposable Income of Consumers
Compared to a new car, a used or pre-owned car has far lower overall ownership costs. High depreciation, more taxes, the RTO/registration cost, and expensive auto insurance coverage are the primary factors leading to high cost of new cars. In the metro cities, nearly 55% of households are belong to middle class having high spending power. With considerable growth of middle class income and affordability of used car boosts demand in India as less than 5 lakh rupee price segments accounts for more than 65% of the market.. Additionally, according to the National Automobile Dealers Association, the pre-owned vehicle market has better dealer margins than the new car market. Owing to the above factors, it is anticipated that India used car market has potential to grow at high rate in upcoming years.
Less Depreciation in Cost of Used Car
The depreciation rate of used cars is lower than that of new cars. The value of new cars starts to decline as soon as their owners start operating them. Depending on the model, a new car's value can drop by as much as 30%. Furthermore, a new car’s value depreciates between 5% and 8% in its second and third years of ownership respectively, which is a substantially slower rate. Due to the variety of vehicle models, condition of vehicle and their efficiency, the depreciation rate of used cars is significantly lower than that of new cars in comparison. Due to the low depreciation rate of used cars, many consumers prefer them over new vehicles, which drives up demand for used cars in India.
Market Segmentation
The India used car market is segmented on the basis of vehicle type, fuel type, sales medium, vendor type, sales channel, top states/union territory, and by company. On the basis of vehicle type, the market is further segmented into hatchback, sedan, and SUV/MPV. Based on fuel type, the market is further divided into petrol, diesel, CNG, hybrid, and battery electric. On the basis of sales medium, market is further bifurcated into offline and Online. Based on vendor type, the market is further bifurcated into organized, unorganized. Based on Sales Channel, the market is divided into dealerships/broker and C2C.
Company Profiles
Cars24 Services Private Ltd., OLX Group, Das WeltAuto, Quikr India Private Limited, Truebil, Droom Technologies Pvt. Ltd., Maruti Suzuki India Limited, CarDekho.com, Mahindra & Mahindra Limited, Honda Motor Co. Ltd. are the key players developing advanced technologies to stay competitive in the market and enhancing their product portfolio in the regions to increase their customer outreach.
Report Scope:
In this report, India Used Car market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Company Profiles: Detailed analysis of the major companies present in India Used Car market.
Available Customizations:
With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:
Company Information
The modern start-ups in India that have both online and offline presence are able to grow their customer base in major cities and also in tier 2, tier 3, and tier 4 cities. Customers can easily browse the automobiles and purchase used cars after thorough inspection. Through intensive marketing campaigns emphasizing best-in-class price and service, new companies such as Cars24, OLX group etc. have increased customers database for their products. Players such as Mahindra First Choice are benefiting from this trend toward organized channels by achieving solid double-digit growth.
In 2021, Covid-19 continued to have an impact on a number of industry sectors. The auto industry has been among those most severely affected by this. The post-pandemic slowdown and other major concerns, including labor shortages, difficulty with the country supply chain, and the switch to BS6, are still affecting the new-car industry's recovery. Since the outbreak, the secondhand automobile industry has expanded. Despite the economic slowdown and other external factors that have hampered the automobile industry, the used-car business has showed a considerable rise in demand and high growth rate. Customers are certainly in favor of used vehicles, and the difference in sales between new and used vehicles is reducing dramatically.
Comparatively Low Cost of Used Cars
A growing middle class, a young population, and an increase in the number of certified used car companies are some of the key elements expected to contribute to the expansion of the used-car market during the forecast period. Additionally, by reduction in the used cars overall cost through dealer trade-in incentives, buyback guarantees, and the introduction of new models more frequently, used car demand progressively increases in past few years. A used car's price is roughly 25% to 50% less than a new one, making the price-performance ratio of a used car superior to a new one. Furthermore, when purchasing a used automobile that has been driven for a year, the cost of used cars does not fluctuate significantly. The subsequent value preservation rate for the used car is expected to increase the demand during the forecast period and attract more customers.
Increasing Disposable Income of Consumers
Compared to a new car, a used or pre-owned car has far lower overall ownership costs. High depreciation, more taxes, the RTO/registration cost, and expensive auto insurance coverage are the primary factors leading to high cost of new cars. In the metro cities, nearly 55% of households are belong to middle class having high spending power. With considerable growth of middle class income and affordability of used car boosts demand in India as less than 5 lakh rupee price segments accounts for more than 65% of the market.. Additionally, according to the National Automobile Dealers Association, the pre-owned vehicle market has better dealer margins than the new car market. Owing to the above factors, it is anticipated that India used car market has potential to grow at high rate in upcoming years.
Less Depreciation in Cost of Used Car
The depreciation rate of used cars is lower than that of new cars. The value of new cars starts to decline as soon as their owners start operating them. Depending on the model, a new car's value can drop by as much as 30%. Furthermore, a new car’s value depreciates between 5% and 8% in its second and third years of ownership respectively, which is a substantially slower rate. Due to the variety of vehicle models, condition of vehicle and their efficiency, the depreciation rate of used cars is significantly lower than that of new cars in comparison. Due to the low depreciation rate of used cars, many consumers prefer them over new vehicles, which drives up demand for used cars in India.
Market Segmentation
The India used car market is segmented on the basis of vehicle type, fuel type, sales medium, vendor type, sales channel, top states/union territory, and by company. On the basis of vehicle type, the market is further segmented into hatchback, sedan, and SUV/MPV. Based on fuel type, the market is further divided into petrol, diesel, CNG, hybrid, and battery electric. On the basis of sales medium, market is further bifurcated into offline and Online. Based on vendor type, the market is further bifurcated into organized, unorganized. Based on Sales Channel, the market is divided into dealerships/broker and C2C.
Company Profiles
Cars24 Services Private Ltd., OLX Group, Das WeltAuto, Quikr India Private Limited, Truebil, Droom Technologies Pvt. Ltd., Maruti Suzuki India Limited, CarDekho.com, Mahindra & Mahindra Limited, Honda Motor Co. Ltd. are the key players developing advanced technologies to stay competitive in the market and enhancing their product portfolio in the regions to increase their customer outreach.
Report Scope:
In this report, India Used Car market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
- India Used Car market, By Vehicle Type:
- Hatchback
- Sedan
- SUV/MPV
- India Used Car market, By Fuel Type:
- Petrol
- Diesel
- CNG
- Hybrid
- Battery Electric
- India Used Car market, By Sales Medium:
- Offline
- Online
- India Used Car market, By Vendor Type:
- Organized
- Unorganized
- India Used Car market, By Sales Channel:
- Dealerships/Broker
- C2C
- India Used Car market, By Region
- North
- South
- West
- East
Company Profiles: Detailed analysis of the major companies present in India Used Car market.
Available Customizations:
With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to five).
1. INTRODUCTION
1.1. Market Overview
1.2. Key Highlights of the Report
1.3. Market Coverage
1.4. Market Segments Covered
1.5. Research Tenure Considered
2. RESEARCH METHODOLOGY
2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations
3. EXECUTIVE SUMMARY
3.1. Market Overview
3.2. Market Forecast
3.3. Key Regions
3.4. Key Segments
4. IMPACT OF COVID-19 ON INDIA USED CAR MARKET
4.1. Impact Assessment Model
4.1.1. Key Segments Impacted
4.1.2. Key Regions Impacted
5. VOICE OF CUSTOMER ANALYSIS
5.1. Factors Influencing Purchase Decision
5.2. Brand Awareness
5.3. Brand Satisfaction Level
6. INDIA USED CAR MARKET OUTLOOK
6.1. Market Size & Forecast
6.1.1. By Volume
6.1.2. By Value
6.2. Market Share & Forecast
6.2.1. By Vehicle Type Market Share Analysis (Hatchback, Sedan, SUV/MPV)
6.2.2. By Fuel Type Market Share Analysis (Petrol, Diesel, CNG, Hybrid, Battery Electric)
6.2.3. By Sales Medium Market Share Analysis (Offline, Online)
6.2.4. By Vendor Type Market Share Analysis (Organized, Unorganized)
6.2.5. By Sales Channel Market Share Analysis (Dealerships/Broker, C2C)
6.2.6. By Region Market Share Analysis (North, South, East, West)
6.2.7. By Top States/Union Territory Market Share Analysis (By Value, 2022)
6.3. India Used Car Market Mapping & Opportunity Assessment
6.3.1. By Vehicle Type Market Mapping & Opportunity Assessment
6.3.2. By Fuel Type Market Mapping & Opportunity Assessment
6.3.3. By Sales Medium Market Mapping & Opportunity Assessment
6.3.4. By Vendor Type Market Mapping & Opportunity Assessment
6.3.5. By Sales Channel Market Mapping & Opportunity Assessment
6.3.6. By Regional Market Mapping & Opportunity Assessment
7. INDIA HATCHBACK USED CAR MARKET OUTLOOK
7.1. Market Size & Forecast
7.1.1. By Volume
7.1.2. By Value
7.2. Market Share & Forecast
7.2.1. By Fuel Type Market Share Analysis
7.2.2. By Sales Medium Market Share Analysis
7.2.3. By Vendor Type Market Share Analysis
7.2.4. By Sales Channel Market Share Analysis
8. INDIA SEDAN USED CAR MARKET OUTLOOK
8.1. Market Size & Forecast
8.1.1. By Volume
8.1.2. By Value
8.2. Market Share & Forecast
8.2.1. By Fuel Type Market Share Analysis
8.2.2. By Sales Medium Market Share Analysis
8.2.3. By Vendor Type Market Share Analysis
8.2.4. By Sales Channel Market Share Analysis
9. INDIA SUV/MPV USED CAR MARKET OUTLOOK
9.1. Market Size & Forecast
9.1.1. By Volume
9.1.2. By Value
9.2. Market Share & Forecast
9.2.1. By Fuel Type Market Share Analysis
9.2.2. By Sales Medium Market Share Analysis
9.2.3. By Vendor Type Market Share Analysis
9.2.4. By Sales Channel Market Share Analysis
10. MARKET DYNAMICS
10.1. Market Drivers
10.2. Market Challenges
11. MARKET TRENDS AND DEVELOPMENTS
12. PORTER’S FIVE FORCES MODEL
12.1. Competitive Rivalry
12.2. Bargaining Powers of Suppliers
12.3. Bargaining Powers of Buyers
12.4. Threat of New Entrants
12.5. Threat of Substitutes
13. SUPPLY CHAIN ANALYSIS
14. POLICY & REGULATORY LANDSCAPE
15. INDIA ECONOMIC PROFILE
16. COMPETITIVE LANDSCAPE
16.1. Company Profiles (Up To 10 Major Companies)
16.1.1. Cars24 Services Private Ltd.
16.1.1.1. Company Details
16.1.1.2. Products & Services
16.1.1.3. Financial (As Reported)
16.1.1.4. Recent Development
16.1.1.5. Key Management Personnel
16.1.2. OLX Group
16.1.2.1. Company Details
16.1.2.2. Products & Services
16.1.2.3. Financial (As Reported)
16.1.2.4. Recent Development
16.1.2.5. Key Management Personnel
16.1.3. Das WeltAuto
16.1.3.1. Company Details
16.1.3.2. Products & Services
16.1.3.3. Financial (As Reported)
16.1.3.4. Recent Development
16.1.3.5. Key Management Personnel
16.1.4. Quikr India Private Limited
16.1.4.1. Company Details
16.1.4.2. Products & Services
16.1.4.3. Financial (As Reported)
16.1.4.4. Recent Development
16.1.4.5. Key Management Personnel
16.1.5. Truebil
16.1.5.1. Company Details
16.1.5.2. Products & Services
16.1.5.3. Financial (As Reported)
16.1.5.4.
16.1.5.5. Recent Development
16.1.5.6. Key Management Personnel
16.1.6. Droom Technologies Pvt. Ltd.
16.1.6.1. Company Details
16.1.6.2. Products & Services
16.1.6.3. Financial (As Reported)
16.1.6.4. Recent Development
16.1.6.5. Key Management Personnel
16.1.7. Maruti Suzuki India Limited
16.1.7.1. Company Details
16.1.7.2. Products & Services
16.1.7.3. Financial (As Reported)
16.1.7.4.
16.1.7.5. Recent Development
16.1.7.6. Key Management Personnel
16.1.8. CarDekho.com
16.1.8.1. Company Details
16.1.8.2. Products & Services
16.1.8.3. Financial (As Reported)
16.1.8.4. Recent Development
16.1.8.5. Key Management Personnel
16.1.9. Mahindra & Mahindra Limited
16.1.9.1. Company Details
16.1.9.2. Products & Services
16.1.9.3. Financial (As Reported)
16.1.9.4. Recent Development
16.1.9.5. Key Management Personnel
16.1.10. Honda Motor Co. Ltd.
16.1.10.1. Company Details
16.1.10.2. Products & Services
16.1.10.3. Financial (As Reported)
16.1.10.4. Recent Development
16.1.10.5. Key Management Personnel
17. STRATEGIC RECOMMENDATIONS
17.1. Key Focus Areas
17.2. Target Regions
17.3. Target Vehicle Type
18. ABOUT US & DISCLAIMER
1.1. Market Overview
1.2. Key Highlights of the Report
1.3. Market Coverage
1.4. Market Segments Covered
1.5. Research Tenure Considered
2. RESEARCH METHODOLOGY
2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations
3. EXECUTIVE SUMMARY
3.1. Market Overview
3.2. Market Forecast
3.3. Key Regions
3.4. Key Segments
4. IMPACT OF COVID-19 ON INDIA USED CAR MARKET
4.1. Impact Assessment Model
4.1.1. Key Segments Impacted
4.1.2. Key Regions Impacted
5. VOICE OF CUSTOMER ANALYSIS
5.1. Factors Influencing Purchase Decision
5.2. Brand Awareness
5.3. Brand Satisfaction Level
6. INDIA USED CAR MARKET OUTLOOK
6.1. Market Size & Forecast
6.1.1. By Volume
6.1.2. By Value
6.2. Market Share & Forecast
6.2.1. By Vehicle Type Market Share Analysis (Hatchback, Sedan, SUV/MPV)
6.2.2. By Fuel Type Market Share Analysis (Petrol, Diesel, CNG, Hybrid, Battery Electric)
6.2.3. By Sales Medium Market Share Analysis (Offline, Online)
6.2.4. By Vendor Type Market Share Analysis (Organized, Unorganized)
6.2.5. By Sales Channel Market Share Analysis (Dealerships/Broker, C2C)
6.2.6. By Region Market Share Analysis (North, South, East, West)
6.2.7. By Top States/Union Territory Market Share Analysis (By Value, 2022)
6.3. India Used Car Market Mapping & Opportunity Assessment
6.3.1. By Vehicle Type Market Mapping & Opportunity Assessment
6.3.2. By Fuel Type Market Mapping & Opportunity Assessment
6.3.3. By Sales Medium Market Mapping & Opportunity Assessment
6.3.4. By Vendor Type Market Mapping & Opportunity Assessment
6.3.5. By Sales Channel Market Mapping & Opportunity Assessment
6.3.6. By Regional Market Mapping & Opportunity Assessment
7. INDIA HATCHBACK USED CAR MARKET OUTLOOK
7.1. Market Size & Forecast
7.1.1. By Volume
7.1.2. By Value
7.2. Market Share & Forecast
7.2.1. By Fuel Type Market Share Analysis
7.2.2. By Sales Medium Market Share Analysis
7.2.3. By Vendor Type Market Share Analysis
7.2.4. By Sales Channel Market Share Analysis
8. INDIA SEDAN USED CAR MARKET OUTLOOK
8.1. Market Size & Forecast
8.1.1. By Volume
8.1.2. By Value
8.2. Market Share & Forecast
8.2.1. By Fuel Type Market Share Analysis
8.2.2. By Sales Medium Market Share Analysis
8.2.3. By Vendor Type Market Share Analysis
8.2.4. By Sales Channel Market Share Analysis
9. INDIA SUV/MPV USED CAR MARKET OUTLOOK
9.1. Market Size & Forecast
9.1.1. By Volume
9.1.2. By Value
9.2. Market Share & Forecast
9.2.1. By Fuel Type Market Share Analysis
9.2.2. By Sales Medium Market Share Analysis
9.2.3. By Vendor Type Market Share Analysis
9.2.4. By Sales Channel Market Share Analysis
10. MARKET DYNAMICS
10.1. Market Drivers
10.2. Market Challenges
11. MARKET TRENDS AND DEVELOPMENTS
12. PORTER’S FIVE FORCES MODEL
12.1. Competitive Rivalry
12.2. Bargaining Powers of Suppliers
12.3. Bargaining Powers of Buyers
12.4. Threat of New Entrants
12.5. Threat of Substitutes
13. SUPPLY CHAIN ANALYSIS
14. POLICY & REGULATORY LANDSCAPE
15. INDIA ECONOMIC PROFILE
16. COMPETITIVE LANDSCAPE
16.1. Company Profiles (Up To 10 Major Companies)
16.1.1. Cars24 Services Private Ltd.
16.1.1.1. Company Details
16.1.1.2. Products & Services
16.1.1.3. Financial (As Reported)
16.1.1.4. Recent Development
16.1.1.5. Key Management Personnel
16.1.2. OLX Group
16.1.2.1. Company Details
16.1.2.2. Products & Services
16.1.2.3. Financial (As Reported)
16.1.2.4. Recent Development
16.1.2.5. Key Management Personnel
16.1.3. Das WeltAuto
16.1.3.1. Company Details
16.1.3.2. Products & Services
16.1.3.3. Financial (As Reported)
16.1.3.4. Recent Development
16.1.3.5. Key Management Personnel
16.1.4. Quikr India Private Limited
16.1.4.1. Company Details
16.1.4.2. Products & Services
16.1.4.3. Financial (As Reported)
16.1.4.4. Recent Development
16.1.4.5. Key Management Personnel
16.1.5. Truebil
16.1.5.1. Company Details
16.1.5.2. Products & Services
16.1.5.3. Financial (As Reported)
16.1.5.4.
16.1.5.5. Recent Development
16.1.5.6. Key Management Personnel
16.1.6. Droom Technologies Pvt. Ltd.
16.1.6.1. Company Details
16.1.6.2. Products & Services
16.1.6.3. Financial (As Reported)
16.1.6.4. Recent Development
16.1.6.5. Key Management Personnel
16.1.7. Maruti Suzuki India Limited
16.1.7.1. Company Details
16.1.7.2. Products & Services
16.1.7.3. Financial (As Reported)
16.1.7.4.
16.1.7.5. Recent Development
16.1.7.6. Key Management Personnel
16.1.8. CarDekho.com
16.1.8.1. Company Details
16.1.8.2. Products & Services
16.1.8.3. Financial (As Reported)
16.1.8.4. Recent Development
16.1.8.5. Key Management Personnel
16.1.9. Mahindra & Mahindra Limited
16.1.9.1. Company Details
16.1.9.2. Products & Services
16.1.9.3. Financial (As Reported)
16.1.9.4. Recent Development
16.1.9.5. Key Management Personnel
16.1.10. Honda Motor Co. Ltd.
16.1.10.1. Company Details
16.1.10.2. Products & Services
16.1.10.3. Financial (As Reported)
16.1.10.4. Recent Development
16.1.10.5. Key Management Personnel
17. STRATEGIC RECOMMENDATIONS
17.1. Key Focus Areas
17.2. Target Regions
17.3. Target Vehicle Type
18. ABOUT US & DISCLAIMER
