Smaller cities driving growth: study
India will sell 7.1 million pre-owned cars by fiscal 2025, up from 3.9 million in FY21, said IndianBlueBook (IBB), a Mahindra & Mahindra floated pricing and analytics platform.
In FY20, the country sold 4.2 million used cars. However, FY21 sales were hit by COVID-19 and volumes dropped by 7.1%, the soon-to-be unveiled study reveals. “This year, FY22, has just started, and we are stuck in COVID 2.0,” said Ashutosh Pandey, CEO & MD, Mahindra First Choice Wheels Ltd.
“But assuming that this wave will not cripple the industry completely, we anticipate at least 7-10% growth in the quantum of used cars sold in the year,” he said.
However, irrespective of the short-term impact, the industry expected the number of used cars sold in the country to be 7.1 million in FY25, the CEO said.
According to Mr. Pandey, markets have been seeing a clear change in customer preference, from shared and public mobility to personal vehicles. This trend is expected to continue for many years as cars are seen as economy-value products and people want to experiment with this product at comfortable price points.
“The industry faces no demand issue as smaller cities account for 60% of pre-owned car sales today,” Mr. Pandey said.
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