3 Key Insights From Global Used Vehicle Industry- The Market Is Projected To Exceed $ 2.5 Trillion By 2027; Says A Report By Ken Research
Global Used Vehicle Market Ecosystem
The Global Used Vehicle market is moderately fragmented with multiple dealers (both organized and unorganized) operating in the industry. Majority of the used vehicles are sourced from vehicle-rental/ leasing companies & auctions.
Direct buying from consumers or individual sellers is another major source.
1. Is the market for Used Vehicle increasing Globally?
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There is a significant growth in the used vehicle sales during forecast period majorly due to expected increase in hybrid and electric vehicle sales in coming years which is anticipated to grow by 2027. The conventional used vehicles have also maintained its dominance however, its overall growth during 2022- 2027 is slower as compared to electric vehicles. The demand for used vehicle has increased by a major 46% and will further increase in the future.
2. Focusing on Expanding Digital Presence can be a game changer for used vehicle selling companies
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Most consumers these days make used vehicle buying decision after searching online which necessitates synchronizing online and showroom experiences and sharing product information, offering sales support & servicing online. Online platforms can introduce an additional service wherein consumers can go through all the used vehicle auctions taking place around them or that are scheduled for the future. At present, there is not much used vehicle content on Tik-Tok and Snapchat. There is an increase in the sales of used trucks for about 35% more since digital presence of vehicle dealers and it is expected to be around 10% more in the future. These platforms are suitable for targeting new customers and will help to increase business opportunities for used vehicle operators.
3. Is Partnerships and Collaborations the right way to future growth of used vehicle industry?
Brand authorized/direct dealership agents as well as large multi-brand outlets can partner with cab aggregators operating in the country such as Uber etc. The used vehicle industry sees majorly Mergers and Acquisitions done through horizontal business contributing to 40%, followed by 22% by conglomerates. There have been more than 30 successful collaborations in form of Joint Ventures in the used vehicle industry. Dealerships can collaborate with mid-size corporates & companies to offer additional discounts of up to 25% to people within that age bracket of 25-60 years if they buy a vehicle using the company’s referral. This collaboration will enable the dealership in generating higher number of leads through the companies, which can ultimately lead to better conversion rates and boost pre-owned vehicle sales.
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