| Used cars are selling like hotcakes in India. | | | | customers today typically go for an upgrade |
| Thanks to their easy availability and lower | | | | or exchange within three years of their |
| interest rates, the sale of used cars is only | | | | purchase, compared to the aged ideology of |
| expected to further shoot up the sales ladder | | | | sticking to the same car for 10-15 years. |
| in the coming years. It is hard to find | | | | |
| accurate data on the sale of used car in | | | | As many as 50 new and tweaked models have |
| India, where the unorganized sector plays a | | | | been introduced in India for the past couple |
| major role. However, if we go through the car | | | | of years. This trend is expected to continue |
| dealers and the country's largest vehicle | | | | and grow till the car makers' pump in Rs |
| financier list, more second-hand cars were | | | | 35,000 Crore in Asia's third largest |
| bought and sold in 2007 than new ones. | | | | automobile market. To think India had barely |
| According to estimates provided by Maruti | | | | two marquees three decades ago - the Fiat |
| Suzuki India Ltd. TrueValue used car division | | | | Premier and Hindustan Motors Ambassador. The |
| and Honda Siel Car India Ltd. Auto Terrace, | | | | 25-30 percent growth in the previously owned |
| which sells pre-owned cars, the used car | | | | car market in the last three years has |
| market this fiscal year is about 10 percent | | | | happened because interest rates for used and |
| more than that of new cars. | | | | new vehicles are more or less the same. |
| | | | |
| Car financers elsewhere have also pointed out | | | | Organised players like Maruti's TrueValue and |
| this growing trend. They estimate that the | | | | Automartindia Ltd have entered this business |
| used car segment is growing at 25-30 percent | | | | and contributing to the trend. They offer |
| compared to the 13 percent for the new car | | | | buyers and sellers the assurance of proper |
| market. In 2007, which ended in March, | | | | ownership and accident documentation along |
| Indians bought 1.4 million new cars, compared | | | | with quality and add-ons such as warranty and |
| to about 1.3 million used ones in the same | | | | free services previously available only for |
| period. Since March, Maruti sold 65,000 used | | | | new car buyers. The general consensus among |
| cars, an increase of 45 percent compare to | | | | the industry is that the used car segment may |
| last year, while Honda sold 2,769 used cars | | | | become almost double of the new car market in |
| in this period compared with 1,765 cars a | | | | another five years as two-wheeler owners has |
| year ago. | | | | been opting for four-wheelers. |
| | | | |
| About 80 percent of the transactions in the | | | | In markets such as the US and France, the |
| second-hand car segment still occurred in the | | | | used car segment is 2.5 times larger than the |
| unorganized sector, facilitated by an | | | | new car one. India may outshoot this record |
| estimated 2,000. With advances in technology | | | | in the years to come. After all, we do have |
| and a record number of new car models | | | | the second largest population! |
| entering the Indian market every year, | | | | |