According to the sixth annual OLX Autos report in collaboration with CRISIL, the Indian used car Industry is set to grow quickly and surpass the new car market.
Although the used car market has historically outpaced the new car market, that gap will widen over the next five years due to low car penetration, the move to digital, new car launches, shorter replacement cycles, and a supportive regulatory environment.
In FY21, COVID-19’s effect was noticeable in the used car market due to a lack of supply and nationwide lockdowns. However, the used vehicle market volume reached pre-pandemic levels in FY22, and it has since expanded by 9%. The industry will advance faster in FY23, supported by a return to almost normalcy, better buyer sentiment, increased mobility due to the opening of offices and a resurgence in travel, and an improved supply of new vehicles.
The annual OLX-CRISIL Auto Note 6 analyses the pre-owned vehicle market in India from FY17 to FY22 and charts the trends for the following five years, from FY22 to FY27. This research also highlights the most popular vehicle models across segments, emerging consumer preferences, and the quick expansion of financial services in the pre-owned car market.
OLX India’s CEO, Mr. Amit Kumar, said. “OLX Auto Note has established itself as a prominent voice on the used car market and the new trends that will influence it in the coming years over the past six years. The used car market is positioned for further growth in the years to come after recovering from the effects of COVID-19 this year. Consumers in bigger towns clearly favour used cars, which is being fueled by an acceleration of the shift to digital channels, which offer greater convenience and foster consumer confidence.
With 37% of Indians expected to live in urban regions by 2025, there will be a significant increase in disposable income and the ability to handle discretionary spending on personal transportation.
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