Amid Crisis Used car market to grow in India; OLX survey

New car sales in pre-owned vehicles are expected to grow by 10 percent in 2020, with India falling to a record low. In 2021, it will reach 4.4 million units. Millennials are emerging as major buyers, according to Consumer Reports. Sales of pre-owned cars in the domestic market are projected to reach 4 million in 2018, up from 4.4 million in 2020, according to the Consumer Reports OLX Auto Note study on the pre-owned car market.

1.4 times more than the new car market, pre-owned cars currently make up the bulk of India’s total automotive sales, reaching 5 million units by 2020 and 6.6 million units by 2023. In terms of value, the report states that the pre-owned car market is currently estimated at $ 14 billion and is expected to reach $ 25 billion by 2023.

440 million, Millennials make up one-third of India’s population and half of the entire workforce. OLX said Indian millennials are driving the entire Indian consumption story and this trend is also reflected in the pre-owned car market.

“A study of the pre-owned car marketplace sheds light on these buyers who make up 50 percent of the current pre-owned car-buying population,” Millennials said.

Commenting on emerging Millennials as a major segment of pre-owned car buyers, OLX India Vice President (Auto) Sanks Kataria said, “Their attitudes, priorities, and life goals are contributing to the continued growth of the pre-owned car market. They are brand conscious, digitally connected, value-added, and environmentally conscious. ”

Millennials are expected to emerge as the largest consumer group in the auto industry over the next three years, with the pre-owned car industry expected to reach 6.6 million units by 2023. Millennials are gaining value not only by buying pre-owned cars online but also by selling 54 percent of their cars online. Selling existing cars to online markets ensures that they have great value.

The primary goal of 36 percent of Millennials is to use the proceeds from these sales to upgrade to a new car, while 17 percent upgrade to a pre-owned car with better features. OLX and OLX CashMyCar conducted a study in India of over 1,500 people who sold or bought a pre-owned car last year. In contrast to the growth in pre-owned car sales, India’s new passenger vehicle sales saw its worst decline in August last year. Sales of the company declined 31.57 percent to 1,96,524 units over the same period last year. The company had sold 2,87,198 units in the same month last year. Total vehicle sales fell as the sector fell behind in the unprecedented recession.

Souce- https://www.cars24.com/blog/used-car-market-india-untold-story/