Second-hand cars are also known as pre-owned cars or used cars that previously had one or more owners. Such cars are sold primarily through different outlets, rental car companies, and private party sales.
According to the MarkNtel Advisors' research report, "India Second-Hand Car Market Analysis, 2021," the market is expected to grow at a CAGR of around 15.6% during 2021-26. The market growth attributes to the introduction of BS-VI norms, i.e., the government has mandated that vehicle manufacturers must produce, sell, and register only BS-VI vehicles across the country.
The prices of BS-VI vehicles are comparatively higher, resulting in consumers exploring more options while buying second-hand cars. The availability of multiple online platforms for buying second-hand cars has aided the number of consumers since it is a more convenient and transparent mode of buying second-hand cars.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||CARS24, Maruti True Value, Mahindra First Choice Wheels, Hyundai H Promise, Honda Auto Terrace, Ford Assured, Toyota U Trust, Big Boy Toyz, BMW Premium Selection, Audi Approved Plus, Mercedes-Benz Certified, Car Trade, OLX|
|Unit Denominations||USD Million/Billion|
Impact of COVID-19
During Early 2020, lockdown imposed by the government and stringent social distancing norms has resulted in few owning a private car rather than using public transport. Car companies have also started providing online vehicle bookings and are showing more features through their websites rather than exposing them to their respective showrooms. Moreover, most companies are available online or via phone for consumer queries regarding the purchase of second-hand vehicles.
Organized Sector Likely to Register Fastest Growth
Within the vendor type/ sector, the market classifies into Organized and Unorganized segments, wherein the Organized division is likely to witness the fastest growth during the forecast period due to the rising online platforms, such as CarDekho, Cars24, Droom, etc.
Nowadays, most OEMs have got themselves into the second-hand Car market providing all safety measures, transparency, and negligible risks while purchasing, which is an edge over the unorganized market. Hence, these factors contribute to the growth of the second-hand car market in India during the forecast period, reveals MarkNtel Advisors in their research report, "India Second-Hand Car Market Analysis, 2021."
SUV Car Accounted for the Largest Market Share
Based on vehicle type, SUVs acquired the highest share in the Indian second-hand car market in the previous few years. Significant reasons behind this growth are bad road conditions as an SUV offers more ground clearance than sedans. The increasing number of SUVs has made consumers shift towards them rather than opting for a sedan or hatchback. Moreover, easy financing options and excellent warranty offered by OEMs have further inclined consumers toward purchasing SUVs.
An Increasing Number of Online Platforms Drives the Market Growth
The digital revolution is disrupting the second-hand car market for the better. The new wave of online platforms emphasizes the importance of customer experiences in the second-hand car buying process to retain customers for a longer time and facilitate positive word of mouth in the market. Due to the surging competition and the availability of numerous options, and lower risks of purchasing the car through online platforms, there is a rise in the number of consumers preferring online platforms, thereby propelling the growth of the Second-Hand car market.
According to MarkNtel Advisors, the major leading players in the India Second Hand Car market are CARS24, Maruti True Value, Mahindra First Choice Wheels, Hyundai H Promise, Honda Auto Terrace, Ford Assured, Toyota U Trust, Big Boy Toyz, BMW Premium Selection, Audi Approved Plus, Mercedes-Benz Certified, Car Trade, OLX, etc.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation and Statistics
Frequently Asked Questions
A. The historical data has been provided since 2016, while the base year is 2020, and the data forecast is up to 2026.
A. The measuring units of market size/industry size or the market value are USD Million and thousand units.
A. The Indian Second-Hand Car Market is forecast to grow at 15.6% CAGR during 2021-26.
A. CARS24, Maruti True Value, Mahindra First Choice Wheels, Hyundai H Promise, Honda Auto Terrace, Ford Assured, Toyota U Trust, Big Boy Toyz, BMW Premium Selection, Audi Approved Plus, Mercedes-Benz Certified, Car Trade, OLX are a few of the leading players in the Indian Second-Hand Car Market.
A. The Sedan car segment is likely to attain the highest CAGR during the forecast period and maintain its significant market share.
A. The Organized segment continues to grow at the highest CAGR, thereby offering immense opportunities to market leaders of the Indian Second-Hand car Market.