October 7, 2022

Buying second hand cars a popular trend in India; more than 35 lakh old cars sold last year

The country’s second-hand or used car market is expected to grow at a compound annual rate (CAGR) of 19.5 per cent till the financial year 2026-27. According to a report released on Monday, the used car market in the country is currently worth $23 billion.

The country’s second-hand or Used car market It is likely to grow at a compound annual rate (CAGR) of 19.5 percent till the financial year 2026-27. According to a report released on Monday, the used car market in the country is currently worth $23 billion. The report says that demand for second-hand cars in the country’s smaller cities could grow by 30 percent annually by 2026. Where the demand for used cars in the main 40 cities of the country is expected to increase by 10 percent annually.

According to the 5th edition of the Second Hand Car and Bike Industry Report for the financial year 2021-22, prepared in association with Indian Bluebook and Das WeltAuto, growth in the sector is possible due to various reasons.

These include the availability of certified vehicles, reduction in the average tenure of car and two-wheeler ownership due to disposable income, new model launches within a short period of time, etc.

According to the report, more than 35 lakh second-hand cars were sold and bought in the country in the last financial year. This number is higher than the record figures for the financial year 2020-21. At the same time, more than 40 million second-hand cars were sold worldwide during the same period.

The report said that second-hand car sales in the country could touch 8 million units by the fiscal year 2026-27. It is expected to grow at an annual rate of 19.5 percent till the financial year 2026-27. The ratio of old cars to new cars is estimated to reach 1.9 during this period.

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