India to have a Rs 5 trillion used car market by FY2028

Used car volumes are expected to reach 8.5 million units over the next 5 years.

According to the OLX Mobility Report, the Indian used car market is projected to grow from Rs 2.1 trillion in FY2023 to Rs 5 trillion by FY2028.

The report also states that volumes are expected to increase from 4.6 million units in FY2023 to 8.5 million units over the next 5 years, at a volume CAGR of 13% and value CAGR of 18%.

The pre-owned car sector is said to have grown by 14-16% in FY2023. Some of the drivers of this growth were the rise in disposable incomes and the growing need for personal mobility; among others.

The pre-owned car industry is estimated to grow at 15% in FY2024. In comparison, the new car market is anticipating a moderate growth rate of 6-8%, but the predicted growth rate for the next 5-year period is 5-7%.

The passenger vehicle segment in India is shifting towards more feature-laden and premium products and SUVs, whose market share is expected to double from 21% in 2023 to 41% by 2028.

The market share of UVs in the pre-owned car segment is also expected to expand as newer models enter the market. As per the data, models like the Hyundai Creta, Maruti Brezza, Ford EcoSport and Mahindra XUV500 are among the most popular SUVs in the pre-owned segment.

Source:ย ET Auto

Source: Read Full Article