indian used car market outlook to 2021

USED CAR MARKET OUTLOOK IN

INDIA BY 2021

USED CAR MARKET IS EXPECTED TO

GROW THREE FOLDS BY 2021

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S. No. Content Page No.

1 Introduction to Used Car/ Pre-Owned Market India

1.1 Summary 10

1.2 Abstract 11

1.3 Top Questions 12

1.4 Study Overview 13

1.5 Scope of The Study 14

1.6 Research Methodology 15

1.7 Typical Pre-owned Vehicle Buying Profile 16

1.8 Industry Ecosystem-Organized sector 17

2 Used Car Market Overview 18

2.1 Drivers and Restrains 19

2.2 Driver Explained 20

2.3 Restraints Explained 22

2.4 Opportunities 23

2.5 Challenges 24

2.5 Porter's Five Forces Analysis 25

3 Used Car Market Forecast by Sales Channel: Volume and Sales Value 26

3.1 INDIA : Annual Growth Forecast by Volume and Sales Value 27

TABLE OF CONTENT

Source-Secondary Database, Affluent`s Analysis, Expert interviews


TABLE OF CONTENT (contd.)


3.2 INDIA: Market Volume Share by Sales Channel 28

3.3 USED CAR MARKET FORECAST - by Body Type: Hatchback, Sedan and SUV & MPV 29

3.3.1 HATCHBACKS: Market Volume Share 30

3.3.2 HATCHBACK: Annual Growth by Volume and Sales Value 31

3.3.3 SEDAN: Market Volume Share 32

3.3.4 SEDAN: Annual Growth by Volume and Sales Value 33

3.3.5 SUV & MPV: Market Volume Share 34

3.3.6 SUV & MPV: Annual Growth by Volume and Sales Value 35

3.4 USED VEHICLE MARKET FORECAST - by Fuel Type: Petrol, Diesel and CNG &LPG(Region Wise)

36

3.4.1 INDIA: Fuel Type Annual Growth by Volume and Sales Value 37

3.4.2 INDIA: Fuel Type Market Volume Share 38

3.4.3 NORTH REGION: Fuel Type Annual Growth by Volume and Sales Value 39

3.4.4 EAST REGION: Fuel Type Annual Growth by Volume and Sales Value 40

3.4.5 WEST REGION: Fuel Type Annual Growth by Volume and Sales Value 41





3.4.6 SOUTH REGION: Fuel Type Annual Growth by Volume and Sales Value 42

3.5 USED CAR MARKET FORECAST – by Transmission Type: Manual, Automatic and AMT and with Body Type (Region Wise)

43

3.5.1 INDIA: Transmission Type Annual Growth by Volume and Sales Value 44

3.5.2 INDIA: Transmission Type Market Volume Share 45

3.5.3 NORTH REGION: Transmission Type Annual Growth by Volume and Sales Value 46

3.5.4 EAST REGION: Transmission Type Annual Growth by Volume and Sales Value 47

3.5.5 WEST REGION: Transmission Type Annual Growth by Volume and Sales Value 48

3.5.6 SOUTH REGION: Transmission Type Annual Growth by Volume and Sales Value 49

3.5.7 HATCHBACK: Transmission Type Annual Growth by Volume and Sales Value 50

3.5.8 SEDAN: Transmission Type Annual Growth by Volume and Sales Value 51

3.5.9 SUV & MPV: Transmission Type Annual Growth by Volume and Sales Value 52

4 Used Car Market Forecast in Top 6 Cities - by Sales Channel: Volume and Sales Value 53

4.1 USED CAR MARKET FORECAST IN TOP 6 CITIES - Annual Growth by Volume and Sales Value 54

4.2 USED CAR MARKET FORECAST IN TOP 6 CITIES : by Body Type - Hatchback, Sedan, SUV & MPV

55





4.2.1 DELHI + NCR: Body Type - Annual Growth by Volume and Sales Value 56

4.2.2 MUMBAI + NAVI MUMBAI: Body Type – Annual Growth by Volume and Sales Value 57

4.2.3 HYDERABAD: Body Type – Annual Growth by Volume and Sales Value 58

4.2.4 BANGALORE: Body Type – Annual Growth by Volume and Sales Value 59

4.2.5 CHENNAI: Body Type – Annual Growth by Volume and Sales Value 60

4.2.6 PUNE: Body Type – Annual Growth by Volume and Sales Value 61

4.3 USED CAR MARKET FORECAST IN TOP 6 CITIES : by Fuel Type - Petrol, Diesel and CNG &LPG 62

4.3.1 DELHI + NCR: Fuel Type - Annual Growth by Volume and Sales Value 63

4.3.2 MUMBAI + NAVI MUMBAI: Fuel Type – Annual Growth by Volume and Sales Value 64

4.3.3 HYDERABAD: Fuel Type – Annual Growth by Volume and Sales Value 65

4.3.4 BANGALORE: Fuel Type – Annual Growth by Volume and Sales Value 66

4.3.5 CHENNAI: Fuel Type – Annual Growth by Volume and Sales Value 67

4.3.6 PUNE: Fuel Type – Annual Growth by Volume and Sales Value 68

4.4 USED CAR MARKET FORECAST IN TOP 6 CITIES : by Sales Channel: Volume and Sales Value 69





4.4.1 DELHI + NCR: Sales Channel - Annual Growth by Volume and Sales Value 70

4.4.2 MUMBAI + NAVI MUMBAI: Sales Channel – Annual Growth by Volume and Sales Value 71

4.4.3 HYDERABAD: Sales Channel – Annual Growth by Volume and Sales Value 72

4.4.4 BANGALORE: Sales Channel – Annual Growth by Volume and Sales Value 73

4.4.5 CHENNAI: Sales Channel – Annual Growth by Volume and Sales Value 74

4.4.6 PUNE: Sales Channel – Annual Growth by Volume and Sales Value 75

5 Competitive Landscape 76

5.1 OEM Affiliated Dealer 77

5.2 Market Volume of the OEM Affiliated Dealer 78

5.3 Process at the OEM Affiliated Dealership 79

5.4 OEM Affiliated Dealers Profile 80

5.5 Online Platforms 83

5.6 Process at the Online Platforms 84





5.7 Dealers and Related Services 85

5.8 Funding in the Industry 86

5.9 New Developments 87

6 Conclusion 88

6.1 Used Car Market Outlook 89

Appendix 90

Abbreviations 91



The total market size for used car in India is was approximately 3.3 million units in 2015 and 16.7% of it was throughorganized market. With sales for new cars still sluggish, carmakers focus seems to have shifted to the larger used carmarket, which, incidentally, has been showing strong growth of XXXX% in the past few years and it is expected togrow at XXXX% between 2016-2021 The used car business provides add-on value to the car manufacturers byincreasing footfalls at showrooms from customers looking for good deals on new cars viz exchange program andloyalty bonus. While it may be profitable as a solo business vertical as well, the growth of the used car marketindicates that Indian car owners are maturing and now want to upgrade their vehicles much faster. The averageperiod of car ownership has fallen to about five from seven in about a decade, and will likely edge towards threeyears as seen in the developed market like the U.S. and Europe.

Traditionally in India, people preferred to buy and sell used cars through unorganized channels(via local dealerships/local mechanics). This market slowly started moving online 4-5 years back and now the market has shifted tomobile which has become the most preferred way to buy, sell and find used cars.

India has 14,000 used car dealers, of which approximately 1300 are organised. The organized used car space willcontinue to grow at a very healthy CAGR as they make used car transactions more transparent and ensure fairprices for both buyers and sellers .

Maruti TrueValue has a share of more than 70% in the organized used car business and 10% of the entire used carbusiness

The growing interest in the used car business is majorly driven by first-time car buyers, usually young people intheir first or second jobs ,less than 30 years of age. They are risk averse and reluctant to make large purchases at atime when the country’s economic growth is not guaranteed and job security remains a concern.

ABSTRACT


STUDY SAMPLE SLIDES



SAMPLE: TOP QUESTIONS

1 What is the growth of Organized used car market anticipated by 2021?

2What drives the used car market, at the same time opportunities that can be leveraged and challenges which have to beaddresses?

3 What kind of body type, fuel type or transmission type is growing to be favoured in the used car market?

4 What will be the growth of used car market in different regions of the country ?

5 Which top 6 cities would dominate this exponentially growing market?

6 Which kind of vehicle per se body , fuel, transmission would see a high growth in these top 6 leading cities?

7 Who are the leading competitors and what are their different strategies to capture the market?


SAMPLE: STUDY OVERVIEW

TOPIC PRE-OWNED/USED VEHICLE MARKET IN INDIA

RESEARCH METHODOLOGYThe research methodology is based out of secondary data. The information has been gathered from the official website of dealers, online retailers, SIAM and ACMA (government bodies).

STUDY PERIOD FY 2014-2021

MARKET FORECAST CY 2016-2021

VEHICLE TYPE Pre-owned/used vehicle: Passenger segment

DEFINITION PRE-OWNED/ USED VEHICLE: Vehicles which have been owned by a consumer and then sold in either organized or unorganized sector

STUDY FOCUSOrganized sector: OEM affiliated dealer, Organized dealerC2C: Peer-to –Peer ,Online platformsComparison to unorganized market

GEOGRAPHICAL LOCATION

IndiaNORTH: Delhi +NCR, Punjab, Haryana, Himachal PradeshEAST: Bihar, Jharkhand, West Bengal, OrissaWEST: Maharashtra, Rajasthan, GujaratSOUTH: Andhra Pradesh, Karnataka, Tamil Nadu, Kerala

CATEGORIZING

BODY TYPE: Hatchback, Sedan, SUV and MPVFUEL TYPE: Petrol, Diesel and CNG &LPGTRANSMISSION TYPE: Manual, Automatic and AMTGEOGRAPHICAL REGION: North, South, East and West IndiaTOP 6 CITIES: Delhi and NCR, Mumbai and Navi Mumbai, Bengaluru, Hyderabad, Chennai, Pune

MARKET NATURE MATURING

MARKET SIZE 3MILION-3.5 MILLION VEHICLE



SAMPLE: SCOPE OF THE STUDY

PRE – OWNED VEHICLE PROVIDERS

ORGANIZED SECTOR*

OEMs AFFILIATED

(/B2C)

USED VEHICLE MULTI-BRAND INDIVIDUAL OUTLET

(B2C/ C2C)

ONLINE MARKET PLACE*

(B2B/B2C/C2C)

UNORGANIZED SECTOR

LOCAL MECHANIC SHOPS

(B2C)

AUCTION PLATFORM*

(B2B/B2C)

Maruti True Value

Mahindra First Choice

Hyundai H Promise

Honda Auto Terrace

Tata Motors Assured

Toyota U- Trust

BMW Premium Selection

Das WeltAuto

Carnation

Mahindra First Choice Wheels Ltd

Toyota U-trust

CarTrade

Quickr Cars

OLX

Carwale

CarDekho

Droom

Toyota AuctionMart

CarDekho Auction

Ediig.com

Shriram AutomallIndia Ltds. (SAMIL)

Copart

SCOPE OF THE STUDY

Note: * Key Players Source-Secondary Database, Affluent`s Analysis, Expert interviews


ABOUT ANALYST

Bhavna BhaisareSr. Consultant - Market Research and

Intelligence

Email Id: [email protected]: +91 080 41903185

Praveen KumarConsultant - Market Research and

Intelligence

Email id: [email protected]: + 91 080 41903917

ANALYSTS REVIEWING COMMITTEE

Paruvatharaj ParameswaranDirector - Automotive Business

Email id: [email protected] : +44 02476158191

Elai GanesanDirector - Business Development

Email id: [email protected] :+44 02476 158280


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