The value of possession for a pre-owned/used automobile is considerably much less compared to a brand new one, primarily on account of excessive depreciation, larger taxes, RTO/ registration price, and costly automobile insurance coverage insurance policies, Grant Thornton Bharat stated in its report.
Noting that with elevated new automobile costs, pre-owned/used autos are anticipated to turn out to be a extra standard alternative amongst Indian customers, the report stated, “the pre-owned automobile market in India is anticipated to succeed in 8.2 million items by FY26, a two-fold improve from approximate 4-million items in FY21.”
“The monetary yr 2021 has witnessed many transitions impacting the monetary well being of the brand new automobile ecosystem within the brief time period. Throughout the identical time, the transition and alter in client preferences has fast-tracked the pre-owned automobile market on the trail to development,” stated Saket Mehra, Companion and Auto Sector Chief, Grant Thornton Bharat.
The client is now extra open to proudly owning a pre-owned automobile than ever earlier than, he added.
In keeping with the report, small cities are anticipated to gas the demand for used autos because the share of non-metro cities in used automobile gross sales is anticipated to rise to almost 70 per cent from the present 55 per cent within the subsequent 4 years.
Stating that the home market possesses super potential for the four-wheeler passenger phase, significantly pre-owned vehicles, it stated used automobile market to be twice as massive as new automobile phase by FY’25, with affordability as the primary issue influencing buy choices.
India recorded a complete sale of two.7 million new autos in FY’20. Nevertheless, the used automobile market development was solely marginal as in opposition to 4 million bought in FY19, on the again of brief provide, it stated.