Nobody can doubt the future potential of Indian economy. You cannot find such a large growing young population whose spending power is increasing every day, anywhere else in the world. The best part is that this population is ready to spend a lot of money even on non-financial assets like cars to have a better standard of living. So how is it that Indian automobile market compares with those of other developed nations? More so, what about the used car market?
Unlike olden times when it was normal to buy just one car during one’s lifetime, these days the trend is slowly shifting towards changing cars after just few years. Since more and more used cars are being sold off just after few years of use and which are in pretty good condition, there are a growing number of people who want to purchase used cars as their first or even second 4-wheeler. This trend is not expected to change anytime soon.
Indian used car market is still not as large as those of other nations. But it’s primarily because people here still have money to purchase new cars. And as more and more people rise up the income levels, the market for both new as well as used cars will grow with time.
Infact, sending this growth in coming years, there are quite a few organized players that have entered the used car space. These players are increasing their focus on after-sales service of used cars and offering better value and offers to prospective customers. So for many value-conscious people, buying a used car has become a viable option.
But honestly speaking, it is still very early to predict 10-20 year kind of a scenario for the Indian used car market. It’s possible that in few years, size of used car market will far outgrow that of new cars. In countries like USA and Germany, the used car market is 2 to 4 times that of new car. So who knows we too might have the same ratio achieved in next decade or two.
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