The used-car market has seen a growth of 5 per cent year-on-year while the new car industry has contracted by 17.8 per cent as compared to the previous fiscal year.
The Covid-19 pandemic wreaked havoc last year with the industry shutting down for more than a month. Car manufacturers did not sell cars in April last year and that was the first time in all these years that the industry accounted for zero sales in the country. But as things started to open up, and social distancing started becoming the norm of the day, personal mobility was the call of the day and this saw a big demand for cars as well as bike. While people who could afford new cars, went ahead and with their buying decision, there were those, who wanted something more affordable or just a bump from two-wheelers to a car and that meant they had options in the pre-owned car business.
The used-car market has seen a growth of 5 per cent year-on-year
According to the research published in Indian Blue Book, in FY20 the pre-owned car market in India stood at 4.2 million units. Now compare this to the new car side of the business and you’ll see that it was in fact 50 per cent higher as the number of new cars sold were just 2.8 million units.
The report also compared the sales from FY19 which suggested that 0.6 million more units were sold last year. The used-car market has seen a growth of 5 per cent year-on-year while the new car industry has contracted by 17.8 per cent as compared to the previous fiscal year.
The pre-owned car business is projected to grow even more in the coming years
While the pre-owned business has seen a substantial growth, it is only expected to improve as the markets open soon. People’s buying decision is being swayed by the want for personal mobility and affordable cars are becoming extremely popular.