While the sale of new cars may have seen a slight dip in the recent past, the pre-owned car market has continued to grow optimally through the pandemic. In fact, in India, the used car market was valued at USD 27 billion in 2020, and it is expected to reach USD 50 billion by 2026, registering a CAGR of 15% during the forecast period, 2021-2026.
The COVID-19 pandemic had a minimal impact on the industry. With the increased number of people preferring individual mobility and more finance options infused into the used car market, the market is set to grow considerably. Reduced cash inflow due to the pandemic has forced buyers to look for alternatives other than new cars, and the used car industry has great growth potential in these terms.
Even the start-up community has been contributing to this growth. Start-ups buy cars from individual sellers, recondition them — which includes quality checks, minor or major fixes — and then make them available for sale. If there is more transparency in the market and fewer intermediaries, the seller could get a higher price for a car and the buyer could get one at a lower price as margins get reduced on both sides. This is also why someone who wants to sell their car today would prefer an online player since these companies take care of all documentation and rely on data to come up with a fair price for vehicles.
Driven by this growth, employment opportunities in this sector has been growing at a steady pace, with many new job opportunities coming to the forefront. The major demand has been for auto engineers and diploma holders in organised used car retail.
Incidentally, players are also looking to hire candidates with just six months to a year of experience in the domain. Additionally, the demand is also high for auto inspection engineers and sales executives, profiles that have traditionally existed only in new car retail. Companies are also looking to hire for technology and product innovation.
Other in-demand profiles are Coordinator Operations, Retail Associate, Retail Manager, Procurement Associate, Evaluation Engineer and Procurement Associate among others. From a region perspective, Ahmedabad, Chennai, Coimbatore, Chandigarh, Delhi, Gurugram, Hyderabad. Indore, Jaipur, Kolkata, Kochi, Lucknow, Ludhiana, Pune, Vizag, Mumbai and Noida are the top regions witnessing maximum opportunities.
The overall sector is far more positive than last year as realism seems to have set in the ecosystem, where investors are largely investing in businesses where they see long term sustainability.
AI and automation is something start-ups are excited about as it has opened different ways of approaching the market and servicing customers.
Not only are companies hiring extensively, but salary trends for these roles is also very promising. For most auto sales professionals, salary trends are being influenced both by a base salary structure and a commission program. Many dealerships are offering additional commissions on sales.
In fact, in the coming months, candidates can expect salary hikes in the range of 10% to 30% depending on their roles. The pre-owned car market is largely driven by supply and not demand, which is not the case with the new car market.
The average ownership period of a car is coming down to about three to five years compared to eight to 10 years which was the case about a decade ago. If one plans to sell their used car, they should take good care of the car. And if one is a buyer, people should use online tools to research the used car market first.
Going to an organized market can help a buyer in two ways – first, the quality of the vehicle will be certified and the buyer will also get some warranty and secondly, if buyers need a loan to buy that car, they may find it easier to do so through an organized market. Given this, the ecosystem is going to flourish more in the coming quarter creating a quantum of job opportunities pan India.
Author: Ajoy Thomas, VP & Business Head (Retail, E-Commerce, Logistics & Transportation), TeamLease Services.
Disclaimer: The views and opinions expressed in this article are solely those of the original author. These views and opinions do not represent those of The Indian Express Group or its employees.
