Used car market in India seems to be following a similar trajectory as seen elsewhere.
Unlike the new car market, which has traversed some rough patches of late, India’s used car market has had a relatively stable growth. From 1.6 million units (worth Rs 38,500 crore) in 2011, it is today pegged at 3.3 million units (Rs 96,000 crore). According to Nagendra Palle, MD, Mahindra First Choice Wheels Ltd, the used car or pre-owned car market will continue to grow at a steady pace of 15% to touch Rs 2,50,000 crore or 6.6 million units by 2021.
Initially, the market was small and mostly like an unorganised market. There were few brands available and even fewer financing options. People bought cars and kept them for near life time. The scope for development of used market was too narrow.
Then number of car brands increase and they bombard people with repeated offers and financing options. This leads people to begin changing cars more often. As the used cars are relatively new, they begin to go into the used market. Seeing an opportunity, both existing car players and new unused players get into the used market. Earlier ads highlighted why buy second hand vehicle as these things shoukd be first hand. But now second hand ones become are no more seen as a pariah and become easily accepted..