India is largely occupied by the middle income group, who aspire to own a four-wheeler giving great thrust to the Used car market. Over the years, the used car market is getting organized with more and more number of OEMs entering the segment. Auto makers ranging from the luxury car makers to the already existing players are all aiming to tap this segment in India.
The major factors that have led to this increased demand in the used car segment are increasing numbers of OEMs entering pre-owned automobile industry, favourable demographics, the changing lifestyle of Indians and user choice. Also, with the growing power of Internet, people find it handy and convenient to seek knowledge on the availability of cars. Loans, an important factor in car purchase have become extremely flexible over the years, making the entire process of car purchase; hassle free.
Although the segment is growing and expanding, the major pit-hole is the boom of cheaper new cars launched by extremely populars and successful car companies. Also, the buyers need to pay extra fares while buying a used car apart from trusting the condition of the car at its face value. The used car buyers are many a times trapped by the agents communicating between the buying and selling party as they replace the standard accessories by sub-standard duplicate ones.
Many car companies like Tata with Nano and Maruti Suzuki with Cervo are pressing on the introduction of cheaper new cars, which could hamper the used car market. But as the input costs are increasing it is most likely that the new cars would not remain as cheap as evident. It is analysed by the industry sources that India would witness nearly 270 outlets by 2012.
Presently Maruti Truevalue, Honda Auto Terrace, Toyota U Trust,Hyundai Advantage and First Choice are the already established outlets by the popular OEM brands. The most expected international brands to enter the used car segment are Porsche and Bentley. The recent statistics suggest that in Bangalore, Delhi, Haryana, Jaipur and other major Indian cities, around 65 per cent of buyers go for pre-owned cars.