The estimated market size of used-car industry is pegged at 71 lakh by FY25, according to the Indian Blue Book (IBB) carandbike.com report released on Wednesday by Mahindra FirstChoice. It said the size of used-car industry is expected to be 90 per cent larger than the size of new-car industry in terms of volumes in the next three years.
The used-car volume estimated for FY21 is 39 lakh units which is 7 per cent lower than 2020 on account of COVID-19-related lockdown.
The de-growth, however, is far lower than the new-car industry which is estimated to de-grow between 35 to 40 per cent in the same time period.
"The pandemic has catapulted the used car to new car ratio by over two times. This is the first time in history that this ratio has crossed the 2x mark," said the report.
"This seems to be a temporary shift. It will drop back to sub-2X levels as the new car industry recovers from the supply constraints." The report said that COVID-19 pandemic outbreak, ensuing lockdown and safety precautions have triggered a significant shift in consumer preferences for personal mobility and used-cars.
The report based on a survey conducted in February was put together by reaching out to 5,000 participants from 52 cities in India via online interviews and telephonic conversations.
These included leading industry experts, customers of carandbike.com and dealers of pre-owned as well as new cars.