Key Points
Fuelled by rising disposable incomes, an influx of new sport-utility vehicles, and attractive loan rates, India's car market is racing ahead..
As per industry estimates, about 4.1 million passenger vehicles were sold in the last calendar year, an increase of around 8.2% compared with sales of 3.79 million units in 2022...
In a recent media interaction, CARS24 Co-Founder and CEO, Vikram Chopra, noted that the Indian used car market is expected to touch the $100 billion-mark in 2034 as against $25-billion in 2023, owing to the rising disposable incomes and a growing middle class..
In tandem with this markets startling growth, loans for used cars, which have primarily carried higher interest rates, have also seen a key shift with narrowing of the interest rate from 400 to 250 basis points.. High demand for popular utility vehicles, which make up half of all passenger vehicle sales in India, has further created a severe demand-supply mismatch in the used car market, raising the average selling price as well as margins of organised players and contributing to this particular segment...
While for the used-cars segment, the increase in sale of new cars bodes well in terms of fresh supply of older cars coming to the market, it also takes away from the growth seen when customers with an appetite for four-wheelers had to turn to used cars given the long waiting periods for new vehicles..
