Evolution of Pre-Owned Automobile Industry in India
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Evolution of Pre-Owned Automobile Industry in India

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Evolution of Pre-Owned Automobile Industry in India

Sameer Malhotra, Director & Chief Executive Officer, Shriram Automall India Limited, 0

India used to import all vehicles till 1930s since the first vehicle ran on Indian road in 1897. India began vehicle manufacturing facility from 1940s onwards. Since then Indian Automobile Industry has witnessed a paradigm shift to become the fourth largest vehicle market in the world. For the uninitiated, every new vehicle becomes the base of pre-owned automobile Industry. Thus, pre-owned automobile industry was introduced long before we know but there was not much study regarding that as pre-owned vehicles were used to be sold in an unorganized way along with unreliable practices.

MARKET SIZE:
Pre-owned Automobile Industry in India started to move towards organized trade practices with the emergence of internet and technology in the early 2000s. Compared to developed countries, Indian Pre-owned Automobile Industry is still in a nascent stage but Indian pre-owned car industry has become larger than the new one in volumes. Today 1.5 used cars are being sold for every new car sold in India. Regarding other segments, there is not much study but they have also become equal to the market size (in volume) of new one if not bigger than that.

MARKET STRUCTURE:
Pre-owned Automobile Industry is still highly unorganized. However, organized players like Shriram Automall have played significant role to make it organized one during the last decade. Market share of organized players is likely to be around 20 percent today against unorganized players. Market share of organized players have become double from just 10 percent a decade ago.

KEY GROWTH DRIVERS:
There are several reasons why Indian used Automobile has been flourishing even in the Covid-19 era. But the most important ones are in the following.

Now, pre-inspected information about a vehicle is easily and readily available in the market



Mindset Change and Emergence of Organized Players:
People used to believe that there is always a hidden issue with pre-owned vehicle & equipment that they have experienced in the unorganized market for a long time. However, the industry has taken paradigm shift with the emergence of organized players. Now, pre-inspected information about a vehicle is easily and readily available in the market. More so, inspection facility is available for each and every pre-owned vehicle to find out the real value (through technological solutions like ThePriceX.com) before purchasing. So, anyone can transact a pre-owned vehicle with confidence and transparent manner. Nowadays, average ownership of a vehicle has been reduced to three to five years from seven to eight years earlier. So, anyone can purchase a preferred pre-owned vehicle & equipment with almost all the latest features.