The Used car market in India is on an upward graph and has even surpassed the domestic new car market. According to the 1st edition of the 'India Pre-Owned Car Market Report 2016' launched by the Indian Blue Book, 3.3 million used cars were sold in India in 2016, 1.2 times the new car sales. That's a big jump from the previous years when almost 1 used car was sold against 1 new car.
The pre-owned car market is still not as well penetrated as that from the U.S where for every new car sold, there are 4 used cars sold. Still, considering the rate by which used cars are selling, trade pundits are expecting a 2:1 ratio of used cars by 2020. Just so you know, 2.8 million new cars were sold in India in 2016, out of which almost 40% were Maruti Suzuki.
Here are some of the key findings of the India Blue Book-
· Pre-owned car market is 1.2 times of the new car market
· 55% sales come from non-metros while 45% sales come from metros
· 50% of the buyers are of the age group 25-34 years
· Average age of pre-owned car is 4 years
· The average cost is Rs. 3-4 lakhs
The growth rate of the pre-owned car market is estimated to grow at 15%, while the growth rate of the new car market is about 7-8%. The survey, conducted by Indian Blue Book also bifurcates the used car market in terms of the place where it is selling and it is as follows -
· Organized outlets like Maruti True Value, Mahindra First Choice - 12%
· Semi-organized market - 35%
· Consumer to consumer sales - 39%
· Unorganized market - 19%.
The Indian Blue Book also hands out the details of the geographical sales and the data is quite interesting. According to the survey, the Northern region is the major market for the pre-owned cars and constituents 36% of the total market share, while the East sits down with 11%. Here's the market share of each region -
Northern India - 36%
Western India - 27%
Southern India - 26%
Eastern India - 11%.
Other facts reveal that about 55% of pre-owned cars are first in the family and 50% of buyers fall in the age group of 25-34 years.