Report – Used car market to overtake new car market in India
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Similar trends observed in both sectors.
A report on The Hindu states that the used car market in India is expected to grow up to 2.5 times the size of the new car market owing to acceptance of used cars, increasing aspirations and expansions of organized used car sales outlets.
The report says that the trend in the used car market is very similar to the new car market in India wherein segments like hatchbacks and sedans witness the most demand. While SUV and luxury cars also find takers, their supply is relatively low.
Many car makers have their respective used car subsidiaries to cash in on this growth. Honda Cars India’s Auto Terrace, VW India’s Das Welt Auto, Maruti’s True Value, Hyundai’s H-Promise and Mahindra’s First Choice (multi-brand) are some examples. Luxury car makers like Mercedes-Benz and BMW too have their respective used car outlets. Mercedes Benz India’s MD and CEO, Mr. Eberhard Kern told the newspaper that the used car segment is a “big opportunity”.
Analyst data indicates that nearly 40 – 45 percent of used car buyers are below 30, and upgrade from a two-wheeler. The industry data also revealed that a majority of used car buyers who made their purchase from an organized sector are likely to go in for a used car again.
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[Source – The Hindu]