| | MARCH 202319This calls for the `value-heads' to consider purchasing a used vehicle or equipment with almost all the latest features at much lower price. Previously, used vehicle meant low quality vehicle with no residual value but now, you can even get a used vehicle of previous year registration at a great price point. Reduced ownership period is also keeping the supply of vehicles in the used market leading to the availability factor to play its part. With easier and wider range of vehicles & equipment models available, potential buyers are flooded with choices. Furthermore, organised players like Shriram Automall India, are taking advantage of the continuous supply of good-quality & good-condition used vehicles and offering them to their customers at well-organised offline facilities, advanced online portals and mobile apps with associated services for improved purchase experience.Another factor that I would like to put forward is the growing trend of digitalisation in the used vehicle industry that is attracting more new-age buyers towards used vehicles. Speaking about the cars, according to various industry sources, over 4.4 million units of used cars sold in India in the last financial year which is 1.4 times that of new car sales of a little over 3 million units during the same time span. As per certain estimates, the new to used vehicles & equipment sales of all the other segments stands around 1:1 in the present time and are expected to grow with time. Of this volume, most of the contribution is done by the unorganised sector as organised used vehicle sector is still spreading its roots among the tech-savvy potential customers. As greater number of buyers from the middle-class and upper middle-class socio-economic ladder is choosing used cars as their first vehicle, the used vehicles industry is expected to grow at a double digit CAGR for the next 4 to 5 years. By financial year 2026-27, the volumes in the used car industry will expand to around seven million units. Over 35 percent of contribution in sales of used cars will come from the organised players. At present, this contribution stands at just 20 percent and is picking up pace with the advent of new-age buyers.Earlier, no finance options were available for the used vehicles and the only way to purchase used vehicles was to get through onetime payment method which discouraged purchases in middle-class families. But tides have turned because a number of public & private sector banks along with NBFCs are offering loans for used vehicles. This move has not only boosted the sales of used vehicles but also provided the affordability factor to the used vehicles across all the segments. Finance options on cars and two-wheelers are easily available and other segments are catching up slowly. Indian used vehicle & equipment market is still in a nascent stage with a great potential. When we speak about the used vehicle market of developed countries like US and Europe, the new car to used car sales ratio stands around 1:3. As the used vehicle market expands, India will catch up to the global trends in the near future.Moreover, exponential hikes in the price of Internal Combustion Engine (ICE) vehicles, steep initial cost of electric vehicles and still catching up electric charging infrastructure in the country is causing stagnation in the research and shortlisting process of potential buyers. These buyers, for time being, are picking up used vehicles to wait for the Indian automotive industry to go in a firm direction before investing into a new vehicle. Being at the helm of India's largest phygital pre-owned marketplace of used vehicles & quipment, I'm pretty sure of the fact that used vehicle industry is on the path of aggressive expansion and it won't be long before we will witness ratio of new vehicle to used vehicle sales to touch nearly 1:2 from current ratio of 1:1.4.This would mean for every 10 new car sold, 20 used cars will be sold as the market grows. There is a great potential in the used vehicle market especially for the organised sectorbecause new-age buyers look forward to each and every detail of the used vehicles of their choice right at the comfort of their homes before going out to purchase. With easier and wider range of vehicles & equipment models available, potential buyers are flooded with choices
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