The pre-owned car market will grow 2.5 to 3 times the new car market in a few years

Auto companies have been raising vehicle prices, citing rising input costs. Why auto companies say that input costs have gone up when prices of most commodities seem to be coming down?

OEMs have been absorbing increasing input costs in the past years which have been eating into their profit margins. The consumption of steel, aluminium, rubber, glass and plastic is high in the automotive industry. Raw material costs are less volatile as they are acquired under long-term agreements. Over a period of years, the number of components in the vehicles has also increased, which has resulted in higher consumption of raw materials. Strict government norms on safety, emissions and constantly changing technology have a significant impact on the supply chain cost. Stagnant sales, halt of excise sops and increasing inputs cost has made OEMs transfer a percentage of this cost to the end-consumer.

Now the excise sops have gone. How will it affect car sales?

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India’s pre-owned luxury cars pick up pace

These days, Indian car market is flooded with various new launches. Every brand is looking at enhancing its investment to come out with at least 2-3 new cars every year. But the irony is; the industry is struggling hard to get new car buyers on board. Whereas, if we take a look at the used cars in India; the situation is quite different and positive as well. In fact, the pre-owned luxury cars segment is showcasing a significant growth potential. It is also witnessing complete organization and transparency with the onset of this trend.

Now the question arises; what are the key drivers behind pre-owned cars sales, gaining momentum in India?

Rising income of people is pushing them more towards the pre-owned luxury cars. Their aspirations are touching sky in order to create better standard of living. And, an aspiring luxurious pocket is a perfect combination to carry out the purchase of a second hand luxury car.

If you are hunting for a pre-owned car, then we recommend a full stop to your search at Shriram Automall India Limited (SAMIL). As India’s most transparent and trusted bidding platform for pre-owned vehicles and equipment, the company offers best of brands in the market.

“As the pre-owned luxury cars segment is expected to undergo a substantial growth in near future, we aim at offering the best of services through our innovative bidding platforms.” – Mr. Sameer Malhotra, CEO of SAMIL.

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