Pre-owned Car market to reach 70 Lakh units by 2020

As per the latest study, there are a lot of used cars in the Indian market and the number of units is likely to reach the 70 lakh mark by 2020. The Indian Blue Book recently released the India Pre-Owned Car Market Report, which is an in-depth study of the nation's used car market. Besides the 70-lakh–unit prediction, the report also suggests that India will become the fifth-largest car market in the world by the end of 2020.

The study also pointed out that India's used cars units are increasing by an annual growth rate of 15 per cent and will cross 33 lakh units by the end of 2016. Surprisingly, the percentage of the non-metro cities makes up for more than half of this number against a 45 per cent contribution from the metros. Region-wise, the percentage of used cars goes as follows – north around 36 per cent, west around 27 per cent and south around 26 per cent.

The other findings of the report are that there are four primary market segments in the used cars zone – the organized segment (12 per cent), the semi-organised segment (35 per cent), the customer-to-customer segment (34 per cent) and the unorganised segment (19 per cent). Around 50 per cent of the people who buy used cars are between the age group of 25 and 34 years.

Globally though, the used cars market in India has grown more than the new car market, and statistically the per capita rate in the country currently lies at around 22 cars/1,000 people.  

Source: Zigwheels.com