up about 20% at 34,000 units. As first owners sell these cars, the pool of used cars gets bigger.
Though official data is not available, industry experts estimate India’s total used car market at a little over three million units, with a 25% annual growth. This is almost the same size as India’s new car market of 2.7 million units. Interestingly, while the country’s used car market sharply lags behind developed economies, where the used car market is three times the size of the primary market, the size of the used luxury car market is the same as the new luxury car market, say sources.
In the past few years, most luxury car makers have also entered the used car market. “Mercedes-Benz India witnessed a strong demand for its pre-owned car business, Proven Exclusivity, in 2013. The company witnessed more than 25% growth in 2013 in this segment. More than 1,200 units were sold,” says a company statement.
Puneet Gupta, principal analyst at IHS Automotive, adds, “A lot of car manufacturers are betting on the used car market; the margins are higher. Many consumers look for premium cars, and used cars give them an opportunity to upgrade to luxury even as they spend lesser.”