Mumbai, May 23, 2024 – The preowned car market in India is poised for a remarkable expansion, with sales projected to reach 10.92 million units by FY28, according to the latest Indian Blue Book (IBB) report by car&bike and Das WeltAuto. by Volkswagen. This marks a substantial increase from its valuation of $31.33 billion in FY23, with expectations to more than double to $70.48 billion by FY28.
The report highlights that the primary driver for owners selling their cars is upgrading to a newer pre-owned model. Meanwhile, budget-conscious buyers are predominantly searching for quality vehicles. Notably, 71% of buyers now consider the Make, Model, and Variant (MMV) a significant factor in their purchasing decisions.
Ashish Gupta, Brand Director of Volkswagen Passenger Cars India, commented, “The pre-owned car market is significantly growing with the potential of it being double by FY28. The growth primarily comes from evolving trends and customer preferences while selecting a pre-owned vehicle. A notable shift is the top priority for safety features, a transition similar to the new car industry, enabling a brand like Volkswagen to be more accessible and in-demand for customers with our 5-star GNCAP rated product portfolio – Taigun and Virtus. The high preference for safety features and standards among customers is positively impacting the residual value of Volkswagen cars, especially the Taigun. We are confident the Das WeltAuto. business will continue to grow as one of the top certified pre-owned car brands in India for customers.”
Buyer Highlights:
- Budget-Conscious Buyers: 63% are highly budget-conscious, seeking quality cars.
- Informed Decisions: 71% of buyers now consider overall repair and servicing costs a big consideration.
- Safety Prioritization: A significant shift towards prioritizing safety, benefiting brands like Volkswagen with their 5-star GNCAP portfolio.
- Dealer Preferences: 45% prefer local dealers, followed by Auto Tech Start-ups (26%) and OEM-backed brands (23%).
- Leasing Awareness: 28% of buyers are aware of car leasing, with 62% open to using it in the future.
- Service Demands: Warranty and financial assistance top the list of service demands.
- EV Hesitancy: 56% do not prefer an electric vehicle used car.
Seller Perspective:
- Upgrade Motivation: 59% sell their cars to upgrade to a newer model. The sale of extra cars bought during COVID-19 has also increased.
- Fast Sales Process: The turnaround time to sell a car has decreased to 3 days, thanks to Auto Tech startups and OEM-backed companies.
- Payment Priorities: Full payment within 24 hours remains a top priority, alongside vehicle inspection at a preferred location.
Ashutosh Pandey, CEO & MD of Mahindra First Choice, added, “The latest edition of the Indian Blue Book, a collaboration with Das WeltAuto. by Volkswagen, reinforces our confidence in the Indian pre-owned car market’s explosive growth potential. The increasing involvement of organized players is bringing stability and trust to this market; achieving consistent profitability and providing a superlative customer experience remains the top priorities for organized players.”
Mahindra First Choice Wheels launched the first edition of the Indian Blue Book in 2015, establishing it as the most intensive primary research in India’s used car industry. Since 2022, Das WeltAuto., the pre-owned car brand of Volkswagen, and car&bike, a subsidiary of Mahindra First Choice Wheels, have co-curated this comprehensive research report.
