The Indian automotive sector is going through its worst phase since 2002. Car sales are dwindling, new car launches are being delayed, investment plans are being put on hold and the overall sentiment is worsening as the months pass by.
Interestingly, the sales of the pre-owned cars are showing strong growth in a gloomy market.
According to a report in DNAIndia, the pre-owned market is comfortably growing at a rate of 10-15%. While most of the pre-owned car market is still pretty un-organized, a double digit growth is exemplary.
Experts suggest that the pre-owned car sales will continue to shine as the market begins to widen itself. Currently, the pre-owned car market is only 16% of the overall market. There is a huge scope for expansion in the future. More interestingly, the growth factors are also coming into place.
More and more automakers are setting up their pre-owned car business to tap the potential demand. The mentality of the Indian consumer is also changing. Previously thought as a taboo, more and more Indians are exchanging their old cars for pre-owned cars.
With the availability of certified pre-owned cars, the consumer can go ahead with a hassle free purchase with a peaceful mind. The quality of pre-owned cars has also improved over the years thanks to the manufacturer himself putting the car through some rigorous tests before certifying it.
However, the slowing down of Indian car market will have a future impact on the pre-owned car business. With the slowdown in the new car market, future sourcing will become a major problem for the pre-owned car business.