The Indian pre-owned car market is poised for a significant expansion, with sales projected to reach 10.92 million units by FY28, according to the latest edition of the Indian Blue Book (IBB) report by car&bike and Das WeltAuto. by Volkswagen.
Pre-Owned Car Market Value
The used car industry, which was valued at $32.44 billion in FY23, is expected to more than double to $73 billion by FY28. This growth is driven by a variety of factors, including the increasing involvement of organized players, which is bringing stability and trust to the market.
The report highlights several key trends among buyers and sellers. Upgrading to a new pre-owned car is the top reason for owners to sell cars, while budget buyers are predominantly looking for quality cars. Customers are also becoming more informed about car technicalities, with 71% of buyers considering the Make, Model & Variant (MMV) as a big consideration.
Consumer Opinion on Pre-Owned Cars
Among the buyers, the report found that a majority (63%) are highly budget-conscious and are looking for quality cars. There has been a noticeable shift among consumers, who are now prioritizing safety as a key feature in a used car. This trend is giving impetus to brands like Volkswagen, known for their 5-star GNCAP product portfolio of Taigun and Virtus.
In terms of exploring options, 45% of buyers/intenders prefer local dealers, followed by Auto Tech Start-ups (26%) and OEM backed brands (23%). The concept of car leasing is also gaining traction, with 28% of buyers aware of the concept and 62% willing to avail it in the future. Warranty and financial assistance topped the list of demands in terms of services. However, a majority of 56% did not prefer an EV used car.
Seller’s View
From the seller’s perspective, upgrading to a new used car is the top reason to sell cars among 59% of respondents. The actual Turn Around Time (TAT) to sell a car has come down to 3 days due to the Fastrack process in auto tech startups & OEM backed companies. Full payment within 24 hours remains the top priority among sellers during the sale process, followed by vehicle inspection at a location of their choice.