Cars have become a necessity and new as well as used car sales in India are soaring by the day. Many of them are first time car buyers and a few families are also adding a second or a third car to their garage.
According to an estimate, over 10 Lakh cars are added to Indian roads every year. Soon there will be more cars than the roads can handle. The number of vehicles on roads has grown at an average rate of 10.2 percent annually and this average has been constant over the last five years when most global car manufacturers entered India. Even the World Bank, in its report on the traffic situation in India, has commented that the growth in car ownership has reduced rush hour speeds to 5-10 km/h in central business districts.
Till a decade ago, the pre-owned car segment in India was dominated by neighbourhood pre-owned car dealers and car mechanics. But now it is certified used car dealers who have taken control of the used car market. Several global car manufacturers such as Hyundai, Ford, General Motors and others are running their own certified used car outlets. Homegrown car manufacturers like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra were the first to start such programmes. And today these used car programmes contribute vastly to the revenues of these companies. The global economic meltdown helped push used car sales over that of new cars.
The used car market has grown to enormous sizes so much so that India is very close to replicating the trends in United States and Europe. Unfortunately, the development of Indian roads has not kept pace with this growth in used car sales and sooner or later they are bound to be with new and used cars.
According to an estimate, over 10 Lakh cars are added to Indian roads every year. Soon there will be more cars than the roads can handle. The number of vehicles on roads has grown at an average rate of 10.2 percent annually and this average has been constant over the last five years when most global car manufacturers entered India. Even the World Bank, in its report on the traffic situation in India, has commented that the growth in car ownership has reduced rush hour speeds to 5-10 km/h in central business districts.
Till a decade ago, the pre-owned car segment in India was dominated by neighbourhood pre-owned car dealers and car mechanics. But now it is certified used car dealers who have taken control of the used car market. Several global car manufacturers such as Hyundai, Ford, General Motors and others are running their own certified used car outlets. Homegrown car manufacturers like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra were the first to start such programmes. And today these used car programmes contribute vastly to the revenues of these companies. The global economic meltdown helped push used car sales over that of new cars.
The used car market has grown to enormous sizes so much so that India is very close to replicating the trends in United States and Europe. Unfortunately, the development of Indian roads has not kept pace with this growth in used car sales and sooner or later they are bound to be with new and used cars.
Labels: New-Car-Sales-India, Pre-Owned-Cars-Sales-India, Used-Car-Sales-India
2 Comments:
After nearly a decade of new cars hitting the Indian car market, this trend was expected. The recession only fuelled the sales of used cars.
Good to hear that it is not only the new car market but even the used car market too is growing well. The reason for used car market gaining popularity is because of the car manufacturers entering the segment. The pre-owned cars are now reliable and certified.
Post a Comment
Links to this post:
Create a Link
<< Home