Indians Buying and Selling their cars within 4 years?
The Indian Blue Book (IBB) 2023 study states that there In India, the average age of used cars is getting lower which implies that consumers can affordably drive and own a reasonably new car. According to data, the average age of a used car in India is currently about 4 years, which is considerably less than the 6 years it was on average a decade ago and down from over 5 years in the previous financial year. According to the survey, used car owners in India are predicted to cut their pre-owned vehicle's lifespan even lower, to just 3.5 or possibly 3 years over the next five years, based on current patterns.
According to the survey, a car in India usually changes ownership at least five times in its lifetime which suggests that there is a lot of activity going on in the used automobile market, with cars being bought and sold regularly.
The significance of internet research in the used car industry is also emphasized in the report. Approximately 90% of purchasers who buy from unorganized dealers also benefit from internet research, as do nearly 98% of buyers who buy pre-owned cars from the organized sector. This suggests that buyers in the used car market rely heavily on online channels to make wise purchasing selections.
The budget and tastes of buyers of used cars are also highlighted in the research. A predetermined budget is preferred by 47% of consumers, who are open to exploring new brands and body types. Conversely, 16% of purchasers do not consider alternative models because they are set on their budget and have already decided which car they wish to purchase. Furthermore, 37% of purchasers are not set in stone regarding budget or model preference, yet they still want high-end vehicles.
The study also observes a notable change in used car buyers' inclination for hatchbacks. Hatchback preference fell to 51% in FY 2023, mostly as a result of more reasonably priced SUVs and sedans being available. Entry-level used hatchback prices have gone up, which has trickled down to raise prices in other segments. The report states that there has been a 4.4% increase in the SUV share.
The Indian used automobile market has development prospects, which are also highlighted in the Indian Blue Book Report 2023. By FY 2028, the market is predicted to have nearly doubled in value to a valuation of over USD 70 billion. The market for used cars is currently valued at $31.33 billion. mass-market names such as Maruti Suzuki, Hyundai, Tata, Toyota, and Mahindra remain key growth drivers in the used car space, with significant demand being seen for pre-owned cars from these brands.
In the end, India's average age of used cars has decreased to 4 years, meaning that consumers can now afford to acquire reasonably priced, reasonably old cars. The study emphasizes the value of internet research as well as used car buyers' budgets and preferences. The Indian used automobile industry is predicted to develop significantly and exhibit notable market trends, with a projected double in value by the year 2028.
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