Used Vehicle Segment – Showing The Way of Growth

A used car now sold for every new car purchased in India: Frost & Sullivan 

We think there could have been nothing more encouraging for the big players in the used vehicle segment in India like the above. The used car segment of the automobile industry also counts equally when it comes to making notable growth in the industry.

Organized players catering to the used vehicle segment has accepted this change very well which in return has boosted the used vehicle market of the country. “Since the inception of Shriram Automall in 2011 we have witnessed tremendous growth in our business & there is no looking back. Seeing this enormous growth we have opened more than 50 Automalls in the country for the exhibition of used vehicles & equipment ”, said Sameer Malhotra, CEO Shriram Automall India Limited.

India, the 6th largest auto market by units witnessed the sale of 2.5 million used cars in FY 2014 & experts forecast it to get double in 6-7 coming years. The used car market in India is witnessing a steady growth of 15% during last five years.

 

Due to high inflation as well as interest rates, the positive sentiments have not resulted in increase in the new car sales. Meantime, first-time car buyers are postponing new car purchases and going either for two-wheelers or used cars.

At present most of the entry level car buyers go for a pre-owned vehicle. Experts cite two main reasons for the same. First, economic uncertainties have made many prospective first time car buyers cautious about spending money; hence, many are actively considering used cars. Second, most car makers have developed a branded used car business that allows customers to purchase second hand cars certified by original manufacturers and backed by warranty. 

"In challenging times of inflation, high interest rates and high fuel prices, many first-time buyers also seek pre-owned cars.