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What Led the Penetration of Organized Players in the Business of Used Cars Dealerships?

India Used Car Market Size and Growth Analysis

by PramodKr
India Used Car Market

India Used Car Market Business Strategies

The India used car market is projected to contribute $70.8 billion in 2030, advancing at a rate of 14.8% from 2021 to 2030. Ascribed to the rising demand for preowned cars in the nation. Led by the increasing consumer focus on affordable high-quality vehicles and growing popularity for imported cars. In addition, the enhanced quality of used cars after extensive servicing is believed to increase the life of the vehicles, and hence people in India prefer to buy old cars and get them serviced for their enhanced appearance and functioning.

The organized players in the regional industry of selling used cars in India are projected to reflect significant growth. The rise in the preference of buyers to spend on certified vehicles from established dealers who provide vehicle certification plays a crucial role in the propulsion of organized players in the used car selling business. Moreover, the rise in the usage of online portals by both buyers and sellers is projected to expand the organized sector.

Competitive Landscape

The organized players are witnessing rapid advance in the Indian used car market. Due to the involvement of individuals instead of organizations creating trust issues among them. It results in increased opportunities for expansion of organized players. Such as OEM and other big players, such as OLX Autos by OLX Group, Cars24 Services Pvt. Ltd., and Ouickr Cars. A subsidiary of Quikr India Pvt. Ltd. The increased involvement of organized players. OEMs encourage the consumers to buy old cars, led by an increased sense of reliability and trust.

In addition, offline sales channel is projected to boost the sales of used cars in India in the near future. It includes traditional brick-and-mortar retail establishments that perform operations in a physical storefront. Ascribed to the rise in consumer preference to purchase a used car from an established dealer. Considering the cruciality of a good consumer experience, and completion of sales. Furthermore, consumers prefer to take a test drive of multiple options available for sale at a dealer’s retail establishment before investing the money.

Drivers

Maharashtra captures a significant share of the used cars sales revenue in India, ascribed to the growing up young population. High depreciation of luxury products, rise in disposable income, rapid urbanization, and penetration of the internet in non-metros. Moreover, the decline in prices and easy availability of used cars. Along with the favorable business environment. Create opportunities for market players to grow their business in the state and thus drive the sales of used cars.

The digital revolution has propelled the sales of used cars, by creating authenticated online retailing platforms for their sales.

Therefore, the rise in the popularity of used cars among consumers is led by the affordable prices of imported vehicles, and a strong belief that timely servicing enhances the life of cars on road.

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