INDIA’S LARGEST USED CAR MARKETS
The Indian used car market is a bustling landscape, driven by a growing economy and a rising middle class. Several key players dominate this space, offering a range of services and catering to diverse customer needs.
Key Players in the Indian Used Car Market
Cars24: A prominent online platform that offers a seamless buying and selling experience, with a focus on transparency and quick transactions.
CARS24, is an Indian multinational online marketplace used car, headquartered in Gurgaon, India. The company is considered among the four major organized players in the used car segment in India.
CARS24 was founded in 2015 by Vikram Chopra, Mehul Agrawal, Gajendra Jangid and Ruchit Agarwal as a platform to buy and sell used cars. In 2021, the company expanded its operations internationally in several countries, including the United Arab Emirates, Thailand and Australia.
Maruti True Value: A network of certified pre-owned car dealerships, backed by the trusted Maruti Suzuki brand.
Maruti Suzuki True Valuehas achieved a landmark milestone of selling 50 lakh pre-owned cars. Introduced in 2001, it has been a one-stop destination to buy and sell quality pre-owned cars. The hassle-free purchase and sale experience for customers along with cars that are safe and reliable have continuously ensured the success of True Value.
Shashank Srivastava, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India Limited, said, “True Value was launched with the aim of providing customers with the opportunity of owning a pre-owned car in the most secure and hassle-free manner. With the successful completion of 22 yearsin the industry, India’s most trusted pre-owned car brand, Maruti Suzuki True Value has established itself as the preferred choice of 50 lakh happy customers. We are confident that we will continue to offer customers our industry-best services including professionally trained relationship officers, an intelligent & tech-driven digital interface to evaluate and certify cars, amongst a host of other services
Mahindra First Choice Wheels: A large network of used car dealerships, offering a wide range of certified pre-owned vehicles
Mahindra First Choice Wheels is India's leading used auto platform business which is organizing the market by aggregating demand and supply.
“Mahindra Group”
Founded in 1945 as a steel trading company, we entered automotive manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads. Over the years, we’ve diversified into many new businesses in order to better meet the needs of our customers. We follow a unique business model of creating empowered companies that enjoy the best entrepreneurial independence and Group-wide synergies. This principle has led our growth into a $20.7 billion multinational group with more than 200,000 employees in over 100 countries across the globe.
Today, our operations span 18 key industries that form the foundation of every modern economy: aerospace, aftermarket, agribusiness, automotive, components, construction equipment, consulting
services, defense, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers.
Our federated structure enables each business to chart its own future and simultaneously leverage synergies across the entire Group’s competencies. In this way, the diversity of our expertise allows us to bring our customers the best in many fields.
Mahindra's Farm Equipment Sector is the proud recipient of the Japan Quality Medal, the only tractor company worldwide to be bestowed this honour. It also holds the distinction of being the only tractor company worldwide to win the Deming Prize. The US based Reputation Institute ranked Mahindra among the top 10.
OLX: A popular online classifieds platform that has a significant presence in the used car market, connecting buyers and sellers.
OLX Group is a Dutch-domiciled online market place headquartered in Amsterdam. The OLX consumer brand originated as On-lineexchange in 2006.
Fabrice Grinda and Alec Oxenford started the company as a Craigslist alternative for the world outside of the United States.In 2006, it acquired Mundoanuncio.com, a classifieds site targeting the Hispanic market and in 2007, it made an investment in Chinese classifieds site Edeng.cn. In 2009, the company partnered with social network Hi5. Naspers acquired a majority of ownership in OLX in 2010, as part of its classifieds' division. Naspers increased its ownership share of OLX to 95% of the company in 2014.OLX launched in Nigeria in 2012. The company purchased its Nigerian competitor, Trades table. However, in February 2018 OLX announced the shut-down of its Nigerian office and a complete pullout from Nigeria.
Hyundai H Promise: A network of certified pre-owned Hyundai dealerships, offering a range of services and a trusted brand name.
Chung Ju-yung (1915–2001) founded the Hyundai Engineering and Construction Company in 1947. Hyundai Motor Company was later established in 1967, and the company's first model, the Cortina, was released in cooperation with Ford Motor Company in 1968. When Hyundai wanted to develop their own car, they hired George Turnbull in February 1974, the former managing director of Austin Morris at British Leyland. He in turn hired five other top British car engineers. They were body designer Kenneth Barnett, engineers John Simpson and Edward Chapman, John Crosthwaite, formerly of BRM, as chassis engineer and Peter Slater as chief development engineer. In 1975, the Pony, the first South Korean car, was released, with styling by Giorgio Giugiaro of Italdesign and powertrain technology provided by Japan's Mitsubishi Motors. Exports began in the following year to Ecuador and soon thereafter to the Benelux countries. Hyundai entered the British market in 1982, selling 2993 cars in their first year there.
In 1984, Hyundai began exporting the Pony to Canada, but not to the United States, as the Pony would not pass emissions standards there. Canadian sales greatly exceeded expectations, and it was at one point the top-selling car on the Canadian market. In 1985, the one millionth Hyundai car was built, Until the 1986 introduction of the larger Hyundai Grandeur, Hyundai offered a locally assembled Ford Granada for the South Korean executive market. The import of these knocked down kits was permitted as long as Hyundai exported five cars for every single Granada brought in (the same demands were placed on Kia)
Factors Driving Growth in the Indian Used Car Market
- Rising Affordability: Used cars offer a more affordable option compared to new cars, making them attractive to a wider range of buyers.
- Increasing Demand: The growing middle class and rising disposable incomes are fueling demand for personal mobility, including used cars.
- Organized Players: The entry of organized players has brought transparency and trust to the used car market, attracting more buyers.
- Online Platforms: Online platforms have made it easier to buy and sell used cars, connecting buyers and sellers across the country.
- Government Initiatives: Government initiatives aimed at promoting the formalization of the used car market are also contributing to its growth.
- Challenges and Opportunities
- Unorganized Sector: The unorganized sector still dominates the used car market, posing challenges in terms of quality and transparency.
- Lack of Standardization: There is a lack of standardization in terms of vehicle inspection and certification, which can lead to uncertainty for buyers.
- Financing Options: Limited financing options for used cars can be a barrier for some buyers.
- Growing E-commerce: The rise of e-commerce platforms is creating new opportunities for online used car sales.
- Focus on Quality: Organized players are focusing on offering quality certified pre-owned cars to build trust and attract more customers.
Conclusion
The Indian used car market is a dynamic and growing sector, driven by a combination of factors. The entry of organized players, the rise of online platforms, and government initiatives are transforming the market and creating new opportunities for both buyers and sellers. As the market continues to evolve, it is expected to play an increasingly important role in the Indian automotive landscape.
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