Indian used car market

The first of the six stores in initial phase was recently unveiled in Mumbai, soon to be followed by Delhi & Bengalooru. The 40,000 sq feet showrooms will enable Automart to sell an estimated 45,000 cars annually by 2010! Automart expects to quadruple its sales from the measly 12,000 units it sells now. The brouhaha over the growing potential of the Indian used car market is not unexpected. While still highly disorganised – and characterised by a profusion of local dealers, vendors and individual buyers and sellers – the segment is expected to map success similar to the one seen in most mature markets of the world. Obviously, compared with the 45 million used cars sold in the US every year, one may argue that India’s 1-1.5 million appears really minuscule by comparison, but wait till you hear this... India’s used car industry is growing at an incredible trajectory of 18-19% every year (almost similar to the growth rate of the new car market!) What’s more, globally the used car market is at least twice the size of new cars and measured in this context, the size of the Indian market is set to zoom further.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)