The growth trajectory of the used car market remains strong. According to a survey commissioned by Volkswagen India to Frost & Sullivan, the used car market is expected to grow from 3.8 million units in 2021 to 8.2 million units by 2025. Demand for used cars is currently 1.5 times that of new cars, but is expected to increase 2.1 times in 2025.
The increasing role of organized play is another important finding in the Indian Used Car Market Research. This shows that the organized platform will contribute 45% to the entire used car market by 2025, from its current 25% share.
According to the survey, the used car market is dominated by the unorganized sector, which accounts for almost 75% of total sales, but demand for certified products, after-sales support, and finance options is driven by demand from Tier 2. Drive the growth of organized players and Tier 3 cities. ..
However, stricter emission standards and the growth of shared mobility services, including public transport, are expected to impact the share of used cars in metro cities. According to the data, the metro and non-metro sales shares in 2021 are 45% and 55%, and are expected to reach 30% and 70% by 2025.
The survey covers a customer age group of 25-59 years, consisting of both male and female respondents from Delhi, Mumbai, Bangalore, Hyderabad, Chennai, Kolkata, Ahmedabad, Chandigal, Cochin, Coimbatore, Gwahati and Bhopal. It was carried out on the subject.
Ashish Gupta, Brand Director of Volkswagen Passenger Cars India, points out: With the aim of taking advantage of this growing opportunity, we are constantly working to enhance our customer service through our nationwide used car network, Das WeltAuto (DWA). In addition, the Tier 2 market plays a key role in used car trading volume, and we are confident that the customer insights gained from the survey will further help us meet our customers’ requirements through customized solutions. “
Kaushiv Madhavan, Vice President of Mobility Practices at Frost & Sullivan, said: Not only has this increased the transparency and reliability of the used car business, but it has also exposed potential buyers to newer generation vehicles that are safer, more reliable and of higher quality. The non-metro market is expected in combination with attractive financing options. Increase revenue-generating opportunities for OE-certified channel partners over the next four to five years. “
Cars under 10 rupees make up 90% of sales
The survey highlights some interesting insights into customer preferences. In terms of cost, most of 90% of sales were in the range of less than 10 rupees. And of this, more than 70% of sales were in the price range of 500,000 rupees.
In terms of model specifications, the survey found that nearly 56% of respondents purchased mid-variant cars and 33% chose top variants. Diesel’s share remains high, accounting for almost 53% of sales, followed by 41% of gasoline engine vehicles. It turns out that 64% of used car buyers are first-time car buyers.
In terms of factors influencing purchase decisions, price is the main criterion at 61%, 25% is maintenance costs, 20% is selected based on brand, and another 20% of respondents are fuel-influenced. Gave.
Cash continues to be king
Cash remains the king when it comes to certain payment method preferences. About 50% of transactions are in cash and 21% are online transactions. Approximately 17% of respondents use financial options and 10% of transactions are a combination of cash and online. Replacement vehicles accounted for 2% of transactions in the used car market.
The study further found that a 3-year-old car with an average mileage of 37,500 km was one of the most preferred cars. Buying a used car has become more attractive with the availability of a new generation of vehicles with the best features. The credibility and credibility brought by organized players, the availability of financial options, and changing mobility trends also helped improve sentiment in the used car market.
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According to a survey by VW, Frost & Sullivan, demand for used cars is expected to reach 8 million units by 2025.
The study shows that the organized platform will contribute 45% to the entire used car market by 2025.
https://www.autocarpro.in/news-national/vw–frost-&-sullivan-study-sees-preowned-car-demand-to-touch-8-million-by-fy2025-79395 According to a survey by VW, Frost & Sullivan, demand for used cars is expected to reach 8 million units by 2025.