‘Used vehicles market may cross 7 million units by FY2022’
| Date :05-May-2019 |
Business Bureau:
The pre-owned car market is expected to scale past the 7-million mark annually by FY22, having crossed 4 million in FY19, claims an industry report. At present, most leading car companies, both domestic as well as international ones, are into this segment and collectively enjoy around 60 percent of the market pie, while the rest is controlled by the unorganised players, Mahindra First Choice Wheels, the pre-owned vehicles arm of the Mahindra group, claimed in a report Friday.
As many as 4 million used cars were sold in the country in FY19, which was 1.2 times of the new car market that stood at 3.4 million units, it said. According to study, dealer footprint has come down due to macroeconomic factors, especially affecting unorganized dealers but organised dealers could grow 19 percent. Rationalisation of GST has resulted in increased investments across the value chain from procurement to retail, as per the study which also found that the finance penetration in pre-owned cars stood at 17 percent with an average disbursement of Rs 3.4 lakh.
According to the study, average monthly volume across segments shows that organised dealers selling 19 cars, and the semi-organised dealers doing 10 cars and the unorganised ones managing four units.