Market research firm Frost & Sullivan has recently released a new analysis report covering the pre-owned vehicle market and its trends in India. The new report - 'Indian Pre-owned Car Market Study - which was commissioned by Volkswagen India, states that by Financial Year 2025 organised platform will account for 45 per cent of the total used car market in the country. The study also highlights the fact that currently the segment is led by brands like Mahindra First Choice Wheels and Maruti Suzuki True Value, which have the largest used car network in India, collectively accounting for close to 3,000 outlets.
Also Read: 2021 Indian Blue Book Report: Used Car Sales Cross 4.2 Million Units Mark In FY20
Right now, the pre-owned vehicle market functions on three key sales channels - customer to customer (C2C), unorganised dealers, and organised dealers. In FY2017 3.6 million used cars were sold in India, and the market was divided as such that unorganised sellers held 44 per cent market share, 38 per cent belonged to the C2C channel, whereas organised dealers held a mere 18 per cent market share. However, in FY 2021, things changed a bit. The total number of used cars sold in India increased to 3.8 million units, however, the market share of organised dealers increased to 25 per cent. At the same time, the market share of unorganised dealers and C2C sales channel came down to 41 per cent and 34 per cent respectively.
Also Read: Buying Used Cars From A Dealer Vs An Individual Seller - Pros & Cons
The study predicts that by FY2025, the annual used car sales in India could touch 8.5 million units
Now, as per the study, this growth trajectory is likely to continue, and by FY2025, organised dealers will overtake both, the unorganised dealers and the C2C channel to achieve a leading market share of 45 per cent. Whereas the market share of the latter two will come down to 33 per cent and 22 per cent respectively. The study also predicts that by FY2025, the annual used car sales in India could touch 8.5 million units. The reason for this change could be as simple as the fact that organised dealers provide reliable, certified products and services, and they offer smart financing options as well, which is certainly a safer way to go. Also, the study says that used car buyers are willing to pay a reasonable price for getting reliable cars than go for cheaper unreliable deals.
Also Read: 2021 Indian Blue Book Report: Used Car Market In India To Grow Significantly In Next Five Years
Volkswagen India, through its used car arm, Das WeltAuto, sold 10,000 used cars in the calendar year 2020
Talking about the latest market outlook, Ashish Gupta, Brand Director, Volkswagen Passenger Cars India said, "The study highlights that the market share in the organised sector will touch 45 per cent by FY25 from the current 25 per cent. This is a clear indication of change in consumers preference in personal mobility. Used car sales will see further growth as compared to new car sales. With the aim to tap this growing opportunity, we are relentlessly working towards strengthening our offerings for customers through our national pre-owned car network, Das WeltAuto (DWA)."
As for VW India, the company, through its used car arm, Das WeltAuto, sold 10,000 used cars in the calendar year 2020. This year, the carmaker aims to achieve 100 per cent growth by taking it up to 20,000 units, annually.
