Preowned cars sales to reach 10.92 mn units by FY28 – Indian Blue Book Report 2023
The Indian used car industry will more than double to $73B by FY28
Bengaluru : May 23, 2024 – The preowned cars sales market in India is set to reach 10.92 mn. units in FY28 as per the latest edition of Indian Blue Book (IBB) report by car&bike and Das WeltAuto. by Volkswagen. The Indian Used car industry was valued at $32.44B in FY23 and will more than double to $73B by FY28.
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% buyers looking at MMV (Make, Model & Variant) as a big consideration.
“The pre-owned car market is significantly growing with the potential of it being double by FY 2028. The growth primarily comes from the evolving trends and customer preferences while selecting a pre-owned vehicle. A notable shift is the top priority for safety features, a transition similar to the new car industry, enabling a brand like Volkswagen, to be more accessible and in-demand for customers with our 5-star GNCAP rated product portfolio – Taigun and Virtus. The high preference for safety features and standards among customers is positively impacting the residual value of Volkswagen cars, especially the Taigun. We are confident the Das WeltAuto. business, will continue to grow as one of the top certified pre-owned car brands in India for customers”, said Mr. Ashish Gupta, Brand Director, Volkswagen Passenger Cars India.
Buyer Highlights
· The report found that majority of buyers are highly budget conscious (63 %) and looking for quality cars.
· Customers have become more informed about the technicalities of cars with 71% of buyers acknowledging overall repairs & servicing costs as a big consideration.
· Big shift noticed among consumers, who are prioritizing safety as a key feature in a used car, giving impetus to brands like Volkswagen for their 5-star GNCAP product portfolio of Taigun and Virtus
· 45% of buyers/intenders prefer local dealers for exploring, followed by Auto Tech Start-ups (26 %) & OEM backed brands (23 %).
· In terms of awareness and preferences of car leasing, 28% of buyers were aware of the concept while 62% of buyers would avail it in the future.
· Warranty and financial assistance topped the list of demands in terms of services.
· A majority of 56% did not prefer an EV used car.
Seller Perspective
· Upgrading to a new used car top reason to sell cars among 59% of respondents, followed by sufficiency of having another vehicle has increased as extra cars bought during COVID-19 are being sold now.
· Due to the Fastrack process in auto tech startups & OEM backed companies, the actual Turn Around Time (TAT) to sell a car has come down to 3 days
· 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.
“The latest edition of the Indian Blue Book, a collaboration with Das WeltAuto. by Volkswagen, reinforces our confidence in the Indian pre-owned car market’s explosive growth potential. The increasing involvement of organized players is bringing stability and trust to this market; achieving consistent profitability and providing superlative customer experience remains the top priorities for organized players.” said Mr. Ashutosh Pandey, CEO & MD, Mahindra First Choice.
Mahindra First Choice Wheels-backed Indian Blue Book launched the first edition in 2015 to highlight the trends in the used car industry in India. Since then, the annual report is been established as the largest and most intensive primary research conducted in India. Since 2022 Das WeltAuto., the pre-owned car brand of Volkswagen, and car&bike, a 100 % subsidiary of Mahindra First Choice Wheels, have co-curated this research report.
