Pre-owned car market in India more likely to attain 8.2 mn models by FY’26: Report

Improve in new automotive costs and relatively decrease value of possession for second-hand automobiles more likely to additional bolster pre-owned car phase.

By :

Up to date on:
24 Dec 2021, 15:24 PM

File photograph used for representational goal. (Bloomberg)

Pre-owned car market in India is anticipated to achieve 8.2 million models by FY’26 from round 4 million models within the monetary yr ended March 2021, pushed by larger demand from smaller cities coupled with rising new car costs and clients’ altering preferences, a report mentioned on Friday.

It additionally mentioned that the market measurement is anticipated to develop to USD 70.8 billion by 2030 at a Compounded Annual Development Price of 14.8 per cent between 2021 and 2030.

The price of possession for a pre-owned/used car is considerably much less compared to a brand new one, primarily attributable to excessive depreciation, larger taxes, RTO/ registration payment, and costly car insurance coverage insurance policies, Grant Thornton Bharat mentioned in its report.

Noting that with elevated new car costs, pre-owned/used automobiles are anticipated to develop into a extra standard selection amongst Indian shoppers, the report mentioned, “the pre-owned car market in India is anticipated to achieve 8.2 million models by FY26, a two-fold enhance from approximate 4-million models in FY21.”

“The monetary yr 2021 has witnessed many transitions impacting the monetary well being of the brand new car ecosystem within the brief time period. Throughout the identical time, the transition and alter in shopper preferences has fast-tracked the pre-owned car market on the trail to development,” mentioned Saket Mehra, Companion and Auto Sector Chief, Grant Thornton Bharat.         

The client is now extra open to proudly owning a pre-owned car than ever earlier than, he added.

In accordance with the report, small cities are anticipated to gasoline the demand for used automobiles because the share of non-metro cities in used car gross sales is anticipated to rise to almost 70 per cent from the present 55 per cent within the subsequent 4 years. 

Stating that the home market possesses great potential for the four-wheeler passenger phase, significantly pre-owned automobiles, it mentioned used car market to be twice as huge as new car phase by FY’25, with affordability as the primary issue influencing buy selections.

India recorded a complete sale of two.7 million new automobiles in FY’20. Nonetheless, the used car market development was solely marginal as in opposition to 4 million offered in FY19, on the again of brief provide, it mentioned.

First Revealed Date: 24 Dec 2021, 15:24 PM IST

Supply hyperlink