Mumbai, September 13, 2017:
Demonetisation reduced the pre-owned car market size, estimated at 3.6 million units, by 0.2 million units, roughly 6% of the overall market, according to IndianBlueBook’s (IBB) new study - ‘India Pre-owned Car Market Report’. This is the second edition of the report.
Over the past year, the market has been hit by significant “jolts” in the form of three major market reforms – demonetisation in November 2016, BSIII/BSIV in March 2017 and GST in July 2017. In addition to updates to the basic market metrics presented in the first edition, the report also reviews the impact of the recent disruptions on the overall market.
“While these reforms have no doubt disrupted the status quo, they have necessitated that all stakeholders change with the times and become “more organised”. Not withstanding the short term hiccups, we strongly believe these market reforms are good for the organised industry in the long term,” said Dr Nagendra Palle, Managing Director & CEO, Mahindra First Choice Wheels Ltd, India’s leading multi-brand certified used car player.
India is expected to be among the top 5 automotive markets in the world by 2020. According to the IBB report, the pre-owned car market will be an important enabler for new car industry growth; 25-28% of all new car transactions are accompanied by a trade-in. The pre-owned car market continues to organise rapidly with organised and semi-organised segments growing by 36% and 12% by volume while the customer-to-customer (C2C) and unorganised segments remaining flat.