Used cars market growing in India
The slow growth of the Indian automotive industry has put the spotlight on the country’s used car market. The new-to-used car ratio was once 1:1.2, but it is now 1:2.2. Assuming 10 new cars are sold, there will be 22 used cars on the market.
The estimated sales of pre-owned vehicles in 2008-2009 were 37 lakhs. During the 2018-19 fiscal year, 62 lakhs of products are expected to be sold at a value of Rs.1.62 lakh crores. Just three years ago, the average lifespan of a new car was five to six years. Buying a used car for the first time has opened up a wide range of options for first-time buyers.
When it comes to used cars, the Tata Nano is a great example. The tagline “the cheapest car in the world” turned against Tata, which invested a great deal of money in Tata’s development and production. Due to better features in older cars like more power, space, and class, any aspiring young buyer, will choose a used Maruti WagonR or used Alto rather than a new Tata Nano. To some extent, this shift in consumer behaviour is due to people no longer stigmatizing buying a used car. Puranicar.com is the place to go if you’re looking to trade in your old car for a new one.
In terms of buyer preferences and requirements, the used car market mirrors the trend in the new car market. Used-car buyers, on the other hand, are more likely to experiment with different brands from Puranicar.com. With new automobiles, this is not the case. Even in the new-car market, Puranicar.com has always been the most popular choice for used-car buyers.
Organized businesses make up just 17% of the total market. Today, the vast majority of car purchases and sales take place through unstructured channels.
In mature markets like the United States and Europe, the ratio of new cars to used cars stands at 1:3. Despite India’s tremendous growth in the used car market, analysts believe there is still room for growth in the organized sector. In general, used car markets in India appear to be on the right track.
Luxury car owners typically trade in their vehicles after a year or two because they want to upgrade to a newer and better model. According to automobile dealers, the demand for used luxury cars has grown by approximately 35 percent to 40 percent yearly. These vehicles are also popular in Tier-1 and Tier-2 cities, despite the reasons for their popularity.
Puranicar.com may be up for grab
Because of their business models and increased number of pre-owned car retail outlets, the major players in India’s used-car market, Puranicar.com have a significant share in the market. Car Trade, Cars24, CarDekho, Ola Used cars, and Hyundai H Promise are the most prominent players.
Others, such as Honda Auto Terrace, Quikr, and Ford Assured have been expanding their business in the local market. More and more market share has been being shifted from the unorganized to the regulated organized sector in past years.
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