used car market in india: past, present and future
TRANSCRIPT
Used Car Market in India: Past, Present
and Future
Index:
• Brief History• Present Condition • Projected Future • Important Statistical Data And Supporting Facts
Brief History
01 Used Cars Market: A Quick Flashback• During mid 90’s people were quite skeptical of buying used cars from car dealers because of their unorganized nature.
• They mainly preferred to purchase used cars from their friends or acquaintances: above 58% of used cars were purchased within this model. Unorganized sector of local dealers accounted for a tad above 38% of total units purchased.
• Introduction of Maruti True Value in 2001 brought what can be termed as a “silent revolution” in used cars market. The brand incorporated organized structure of selling pre-owned cars.
Present Condition
01 Steady Present, Promising Future• Though quite popular, the pre-owned car market in India is still at an initial phase if compared to US and UK.
• According to a survey the market in UK and US is much ahead than India. Statistically speaking it is 1:3 and 1:2 in US and UK respectively, as compared to India.
• On a positive side, it also implies that the market still has many untapped opportunities.
• The apparent shift in the lifestyle of middle income group and increase in pay scale has resulted in exceptional and steady growth and ensures a promising future.
02 Brand Wars: Who’s on the Top
• Being the pioneer of organized pre-owned car market and consistently delivering quality, performance and customer satisfaction, Maruti has retained its numero uno position in used car market.
• Other brands in the market are Tata, Hyundai and Honda. However, they are still way behind Maruti.
Projected Future&
Important Statistical Data And Supporting Facts
01• Another revolution in the market was brought about by online marketplaces selling pre-owned cars.
• Apart from eliminating tedious legwork, they also made it easy for the clients to sort the cars according to different features like budget, model, manufacturing year, brand etc.
• Instead of going from one dealer to the other, clients can now easily select from a large category of cars using a few clicks of mouse.
• Along with competitive prices, another benefit of such online marketplaces is that they give the client a sufficient time to “do homework” before finally meeting/contacting the seller.
Digital Market Revolution
02 Used Cars: Best for Indian Families• Indian families are characterized by their big size. So they need a big car (6-Seater or larger).
• However, the working population prefer 2 small cars (4-seater) instead of a big car so that one car can be used for commuting to the workplace while the other car can be used by other members of the family. • With a wide variety of considerably economical choices across different categories people prefer to buy the used car that are available at a fraction of the new ones.
03 Used Cars: Best for Indian Families• Indian families are characterized by their big size. So they need a big car (6-Seater or larger).
• However, the working population prefer 2 small cars (4-seater) instead of a big car so that one car can be used for commuting to the workplace while the other car can be used by other members of the family. • With a wide variety of considerably economical choices across different categories people prefer to buy the used car that are available at a fraction of the new ones.
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