Rise in Demand for Off-Lease Vehicle Expected to Drive India Pre Owned Premium Car Market over the Forecast Period: Ken Research
A pre-owned vehicle is a vehicle which has one or more retail owners. It is also known as used car or secondhand cars. It is sold through various outlets such as rental car companies, franchise & independent car dealers, leasing offices, buy here pay here dealerships, auctions, and private party sales. Some car retailers provides “certified” used cars, “no-haggle prices,” and extended service plans or warranties.
The key benefits are lower customization costs, no exaggerated fees, and lower insurance premiums.
According to study, “India Pre Owned Premium Car Market Outlook to 2023 – Growth Propelled by Traction from Digital Platforms, Surge in Certified Dealership, Decline in Average Car Price and Faster Launch of New Models” some of the major companies that are currently working in the India pre owned premium car market are Cars 24, JLR, Cartrade, BBT, OLX, Maruti True Value, Mahindra First Choice Wheels, Hyundai H Promise, Honda Auto Terrace, Toyota U Trust, Ford Assured, BMW Premium Selection, Big Boy Toyz,, Mercedes-Benz Certified, OLX, Car Trade, Audi Approved Plus. The key car manufacturers are focusing on catering to the growing demands of specific demographic segments for instance the millennials.
Based on vehicle type, pre-owned premium car market is segmented into sedan, hatchbacks and SUV. Based on structure type, market is segmented into organized and unorganized. Based on vehicle age, market is segmented into 0-5, 6-10, 11-15, 15-20, and > 20 years. Based on fuel type, market is segmented into diesel and petrol. Based on size of car, market is segmented into compact size cars, mid-size cars and small size cars. Mid-size cars holds major share in market due to increase in adoption & preference of consumers to buy mid-size cars across both emerging and advanced economies. Based on propulsion, market is segmented into and electric vehicle (EV) and internal combustion engine (ICE). The electric vehicle segment is further sub-segmented into plug-in EV, battery EV and hybrid EV. In addition, based on sales channel, market is segmented into franchised, rental car companies, independent car dealers, and others.
The pre-owned premium car market is driven by increase in sales of used cars in metro cities, followed by growth in demand for luxury cars, increase in young population, shorter car ownership periods, rise in availability of credit payment options, presence of several established & regionally popular vendors, rise in digital literacy among car enthusiasts, increase in preference of two-wheeler owners to upgrade to small & compact cars, growth in import & export, rise in internet penetration in non-metro, growth in economy, increase in disposable income of the consumers and rise in online sales platforms, for instance Cars24, CarDekho and Droom. However, lack of financing & expensive financing options and standardized dealership experience may impact the market. Moreover, rise in organized & semi-organized sector is a key opportunity for market.
The India pre-owned premium car market is expected to witness higher growth rate owing to stringent vehicular emissions regulations, rise in demand for off-lease vehicle by franchise, leasing offices & car dealers and growth in demand for car subscription services over the forecast period. In near future, it is anticipated that market will be reached at fast pace due to increase in production & sales of SUV during the forecast period.
Key Segments Covered:-
India Premium Used Car Market Segmentation by Market Structure (Organized/Unorganized & C2C),
India Premium Used Car Market Segmentation by Car Made/Brand (BMW, Mercedes Benz, Audi, JLR and Other)
Premium Pre-Owned Car Dealers (MB Certified, Audi Approved plus, BMW Premium Selection and Jaguar Approved) in India
India Premium Used Car Market Segmentation by Sourcing Channel (Buy Sell, park Sell and Trade Ins)
Key Target Audience:-
Online Auto Listing Websites
Premium Car Companies
NBFCs, Insurance Companies and Banks
Used Car Dealers
New Market Entrants
Time Period Captured in the Report:-
Historical Period: 2013- 2018
Forecast Period: 2019 – 2023
Key Topics Covered:-
India Pre Owned Used Car Market
Used Car Demand In India
Premium Brands Used Car Market India
India Used Car Market Sale By Dealership
BMW Car Market Sales By Dealership India
Number Of Premium Car Dealers In India
Second Hand Premium Cars Industry India
Luxury Ride Preowned Premium Cars India
Used Luxury Cars For Sale In Mumbai
Number of Branches of Cars 24 India
New And Used Car Market Ratio India
BBT Sales Luxury Cars Market India
For more information on the research report, refer to below link:-
US Vehicle Finance Market Outlook to 2023 –By Banks and Non Bank Entities including Captives and Credit Unions and Finance Companies (Auto Loan Portfolio), By New and Used Vehicles, By Type of Vehicle Financed (Passenger Cars and Light Trucks), By Loan Time Period and By Risk Category
Ankur Gupta, Head Marketing & Communications