According to the Indian Blue Book (IBB) 2023, the average age of used cars in India is decreasing. In simple terms, it means buyers get to drive and own a not-so-old car at an affordable price. Data shows the average age of a used car in India is nearly 4 years at present, down from nearly 5 years in the previous financial year and significantly lower than 6 years on average a decade ago. Based on the trends, the report says owners of used cars in India are expected to further reduce the time they hold on to their pre-owned vehicle to only 3.5 or maybe 3 years in the next 5 years. In India, a car changes hands at least 5 times during its life cycle, as per the report.
Also Read: India's Pre-Owned Car Market Set To Reach 10.92 Million Units By FY2028: IBB Report 2023
Research suggests that of all the used car buyers, about 94 per cent use online platforms for preliminary research. Nearly 98 per cent of used car buyers, who purchase from the organised sector do their research online, while about 90 per cent of the used car buyers who purchase from unorganised dealers also benefit from online research.
As high as 47 per cent of used car buyers have a fixed budget, but are open to different brands and body styles.
About 47 per cent of used car buyers have a fixed budget and are open to cars from across different brands and body styles. On the contrary, 16 per cent of the respondents are fixed on their budget and have already narrowed down on the vehicle they want to buy. During their purchase journey, they do not look at different models, as they have more or less made up their mind to purchase a particular model. Moreover, 37 per cent of buyers are flexible on budget and the make or model, but are looking for only high-quality cars.
Also Read: IBB Report 2023: Fewer Buyers For CNG, Petrol Dominates Pre-Owned Car Buyers Choice
Preference for hatchbacks among used car buyers dropped to 51 per cent in FY 2023, as per the report. This drop in percentage, the report explains, is primarily due to various affordable options available in SUVs and sedans. The cost of entry-level used hatchbacks has increased, causing a trickling effect on the rise in other segments. SUV share has increased by 4.4 per cent, according to the report.
As per the latest edition of the Indian Blue Book Report, India's used car market is expected to be valued at over USD 70 billion by FY 2028, almost doubling in value. The pre-owned car market’s current valuation (FY2023) stands at $31.33 billion. The mass market brands remained the key growth drivers in the used car space, with significant demand being seen for pre-owned cars from Maruti Suzuki, Hyundai, Tata, Toyota and Mahindra.
Also find more about used car industry in india with IBB Report
