Summary

India has a distinct and dynamic used car market, formed by a confluence of cultural, economic, and demographic variables. In India's slow-growing automotive industry, the used automobile market has gotten a lot of attention. Demand for used car has increased in the past year, with over 40 lakh purchasers expected in 2023. India is a price-sensitive market where affordability is critical to purchasing decisions. As a result, the used automobile market is thriving, with a substantial section of the population choosing pre-owned vehicles due to their reduced pricing when compared to new ones. The value proposition provided by used cars is nicely aligned with the financial constraints of many Indian consumers. India's consumer base is broad, with tastes affected by cultural, regional, and lifestyle considerations. While compact cars have traditionally dominated the market due to their fuel efficiency and mobility in congested urban areas, there is increasing demand for a wide range of sectors, including SUVs and premium sedans. Because of this variety of preferences, the used automobile industry is dynamic, catering to a wide range of consumer wants. India has a young population, and vehicles are typically seen as a sign of mobility and status among the younger generation. Aspirations: as income levels rise, there is a shift toward personal car ownership. This translates into a desire for used cars, generally with advanced features and technology. India is rapidly urbanizing, resulting in increased congestion and traffic in many cities. This has an effect on the vehicle types that are popular in the used automobile market. Small and fuel-efficient cars are still in demand due to their mobility and usefulness in congested metropolitan areas. Brand loyalty and resale value are important factors for Indian consumers. Certain brands and models have earned a reputation for dependability and resale value, affecting purchase decisions in the used automobile market. Consumers frequently seek vehicles that hold their worth well over time, which contributes to a predilection for specific types and models.

According to the research report "India Used Car Market Overview, 2029," published by Bonafide Research, the India Used Car market is predicted to grow with more than 15% CAGR from 2024 to 2029. In recent years, India's used car market has grown significantly. This growth can be linked to causes such as rising income levels, shifting consumer attitudes, and increased knowledge of the value proposition provided by used vehicles. The market is dynamic, with a high volume of transactions occurring on a regular basis, reflecting the interests of a broad consumer base. In the Indian used car market, certified pre-owned (CPO) schemes have gained traction. These programs, which are frequently offered by manufacturers and organized dealerships, include stringent inspections, refurbishments, and warranty coverage. The establishment of CPO programs attempts to inspire buyer confidence in the quality and dependability of the used cars they purchase. Indian buyers have a predilection for personalization, which extends to the second-hand automobile industry. Many purchasers want automobiles that are customized to their tastes, whether in terms of appearance or functional additions. This tendency has created a market for aftermarket equipment and customizing services, bringing a new dimension to the used automobile ownership experience. The growth of shared mobility services like ride-sharing and car rentals has changed people's perceptions of vehicle ownership. While shared transportation has grown in popularity, the used automobile market continues to thrive, catering to individuals who prefer personal ownership. Lifestyle changes, such as the requirement for flexible and private mobility, continue to contribute to the used automobile market's durability and adaptability.

Based on vehicle type segment market is divided into conventional, hybrid and electric. Conventional vehicle type is expected to lead the India used car market during the forecast period. In India, conventional automobiles powered by petrol and diesel have a well-established infrastructure. Petrol and diesel stations are widely available, providing easy refuelling around the country. As consumers are already aware of and comfortable with the availability of these fuels, the existing infrastructure helps to sustain the appeal of conventional automobiles. Conventional automobiles, particularly those fueled by gasoline, frequently have lower initial costs as compared to alternative fuel vehicles or electric cars. In the Indian automotive market, affordability is a crucial element, and consumers, particularly in the used car segment, choose vehicles with lower initial purchase prices and maintenance costs. The body type segment of market includes hatchbacks, sedan, SUV & MUV and others (Coupe & Convertible). SUV and MUV are significantly gaining traction in India used car market. SUVs and MUVs have a rising aspirational appeal as income levels rise and lifestyles alter. In India, these automobiles are seen as emblems of status, comfort, and a more opulent lifestyle. Buyers on the used car market may have the opportunity to acquire an SUV or MUV at a lower cost than acquiring a new one, which contributes to their appeal. SUVs and MUVs have roomy cabins, making them ideal for larger families. Vehicles with plenty of space and seating capacity are generally selected in a culture where family values are important. Furthermore, the versatility of these vehicles makes them appropriate for a wide range of applications, including long-distance travel, city commuting, and recreational activities.

The fuel type segment of the market includes petrol, diesel, others (CNG, PNG, electric, etc.). Petrol type is majorly preferred used car vehicle in India used car market. Petrol cars generally have a lower upfront cost compared to diesel or hybrid vehicles. In a price-sensitive market like India, where affordability is a significant factor, the lower initial purchase price of petrol cars makes them more accessible to a larger segment of the population, especially in the used car market. Petrol cars are well-suited for urban driving conditions, which dominate many parts of India. They are preferred for short-distance commuting, stop-and-go traffic, and city driving. The versatility and ease of manoeuvring associated with petrol cars make them practical for daily use in congested urban areas. Based on size segment market is bifurcated into mid-size, compact and SUVs. Compact size cars are widely purchased in India. Compact automobiles are noted for their fuel efficiency, which is important to many Indian buyers. With rising gas prices and a focus on cost-effective transportation, compact automobiles, which are frequently equipped with smaller and more fuel-efficient engines, appeal to a significant part of the population. Compact automobiles have lower initial purchase prices than larger vehicle segments. Affordability is a critical factor influencing purchase decisions in a price-sensitive market like India. Compact automobiles are more affordable, making them more accessible to a wider spectrum of consumers, including first-time car owners and young professionals. Online distribution channel is expected to grow at rapid pace in India used car market. The increased availability of inexpensive smartphones and improved network infrastructure have resulted in a considerable increase in internet penetration in India. As more consumers get internet access, the web channel offers a valuable platform for used automobile research, comparison, and purchase. Online marketplaces offer access to a large variety of used cars from various vendors, dealerships, and areas. This breadth of selection helps consumers to investigate a number of possibilities, supporting a more informed decision-making process. It also gives buyers access to models that may not be available locally, broadening their options.

Considered in this report:
• Geography: India
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report:
• India Used Car market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Vehicle:
• Conventional
• Hybrid
• Electric

By Body Type:
• Hatchbacks
• Sedan
• SUV
• Others (Coupe & Convertible)

By Fuel Type:
• Petrol
• Diesel
• Others (CNG, LPG, electric, etc.)

By Vendor Type:
• Organised
• Unorganised

By Size:
• Mid-Size
• Compact
• SUVs

By Distribution Channel:
• Offline
• Online

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Used Car industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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