As the used car market grows in the country, the share of organised players too is set to rise in this fast-growing segment.
According to a recent report, the share of organised players in the pre-owned car market, including digital platform sales, which now stands at 20 per cent, will reach 30 per cent in the next five years.
The pre-owned market has been outpacing the new car market, and the industry is expected to clock a healthy growth rate of 15 per cent in FY22, showed the 'OLX Autos -CRISIL Study 2021'.
"The prospects continue to be bright on the longer horizon, with a 12-14 per cent CAGR expected over the next few years, taking the size of the market to more than 7 million (70 lakh) vehicles by FY26, from 3.8 million (38 lakh) units in FY21," it said.
In contrast, the new car market is expected to grow at around 10 per cent CAGR (Compound Annual Growth Rate). With many people preferring socially-distanced personal mobility, because of the pandemic, the pre-owned car market is expected to continue to be a sunrise sector.
In addition, the accelerating trend of digitalisation will lead to an increasing share of sales through digital classifieds, which will move to 25 per cent from 15 per cent currently.
As per the report, the pre-owned market has been outpacing the new car market, and the industry is expected to clock a healthy growth rate of 15 per cent in FY22.
"The preference for personal mobility has propelled a huge swing in favour of used-car sales that are expected to reach a phenomenal 1.5x more than that of new car sales over the next five years," OLX Autos India CEO Amit Kumar said.
(With inputs from IANS)