Over 70% Used Cars In India Are Sold For Under Rs. 5 Lakh: Study

Market research firm Frost & Sullivan's new 'Indian Pre-owned Car Market Study' says that over 70 per cent of used cars in India are sold under the Rs. 5 lakh margin. The report, which was commissioned by Volkswagen India, highlights an analysis between price range and market share, which revealed that 90 per cent of used car sales happen at a price bracket below Rs. 10 lakh, whereas 70 per cent of used car sales come from a price range below Rs. 5 lakh.

Also Read: 5 Things You Must Do After You Buy A Used Car

The Frost & Sullivan report was commissioned by Volkswagen India

The report also highlights few other aspects, including the fact that about 53 per cent of used car buyers go for a diesel vehicle, whereas 41 per cent go for petrol. Also, the study showed that out of the total used cars sold in FY2021, 64 per cent were first-time car buyers. Also, the purchase pattern showed that 56 per cent of buyers purchased mid variant cars, followed by 33 per cent purchasing top variant.

Also Read: Top 6 Cars That You'll Only Find In The Used Car Market

The study also says that about 53 per cent of used car buyers go for a diesel vehicle, whereas 41 per cent go for petrol

Also Read: Organised Platforms Will Account For 45% Of Total Pre-Owned Car Market By FY2025: Study

One of the other things that the study majorly highlights is that by FY2025 organised platform will account for 45 per cent of the total used car market in the country. Right now, the pre-owned vehicle market functions on three key sales channels - customer to customer (C2C), unorganised dealers, and organised dealers. As of FY2021, the market share of organised dealers stands at 25 per cent, while the market share of unorganised dealers and C2C sales channels is 41 per cent and 34 per cent respectively. By FY2025, the market share of unorganised dealers and the C2C channels will come down to 33 per cent and 22 per cent respectively.