The
report titled “India Pre Owned Premium Car Market Outlook to 2023 –
Growth Propelled by Traction from Digital Platforms, Surge in Certified
Dealership, Decline in Average Car Price and Faster Launch of New Models”
provides a comprehensive analysis of the Used Premium brands car market in India.
The report also covers the overview of US, Japan and Europe Premium Brands used
car market, Indian market size in terms of revenue and volume sales,
segmentation on the basis of brand category and market structure, sourcing
methods, regional analysis by each brand. Pricing analysis, dealership network
analysis, used car sales by each dealership, trends and developments, issues
and challenges, competitive scenario and company profiles. It also includes detailed
Analysis of MB Certified, Audi Approved Plus, BMW Premium Selection, and Jaguar
Approved-Dealer Network across various regions in India, Customer Profiling and
Marketing and Re-marketing trends. The report concludes with snapshot on resale
value analysis, Finance Support and market projection and analyst
recommendations highlighting the major opportunities and cautions.
Market
Size and Growth: India Premium used car market is on constant rise registering robust
growth in the last few years. Prime reason for this double digit growth has
been expansion of new car sales, launch of new models/variants/colors/
customizations, decline in average ticket size, introduction of new sales
channels and others. Demand expanded
primarily owing to rise in the number of HNI’s & per capita disposable
income. Change in mindset of domestic population for favoring used cars over
new cars also facilitated the shift. In 2017, sales volume and GTV generated
from premium used car sales witnessed major decline in growth rate owing to the
implication of GST and demonetization. All the cities witnessed cash crunch
especially in cities such as Surat, NCR, Mumbai and Bangalore.
Market Segmentation by
Market Structure: India’s organized premium pre owned car market is a micro segment that witnesses cut throat competition amongst OEM certified
dealers and large semi-organized players. Prices of the cars sold
through such dealers are higher
owing to numerous value added services offered alongside. These include OEM
warranty, road side assistance, certified refurbishment & others. Online websites contribute more than
80% in lead generation for the sales made by the organized sector. Average margins charged & average ticket
size is usually higher.
Market Segmentation by Car
Brand:
Mercedes Benz is the biggest premium used car seller. It has highest number of
used car sales outlets. BMW has an average first ownership period of around 3-4
years and is popular in West, Central and South India. For Audi Q5,
A7, A8, R8, RS7, RS5, A5 are most popular brand and has lowest ownership period
for new cars. Significant decline was registered for new car sales which has
negatively impacted the demand for used car sales. JLR is relatively new player
in the Indian market but is fast gaining popularity.
Market Segmentation by Region: Northern India with Delhi
NCR, Ludhiana, Chandigarh, Dehradun, Karnal, Indore, Lucknow and Mohali are the
prime demand pockets. India had more than three hundred thousand HNWI’s in
2018. Southern cities mainly Bangalore, Hyderabad and Chennai had the highest demand
in the region. Bangalore has shown the highest growth potential. Other major
cities include Kochi, Chennai, Coimbatore, Hyderabad, Vijayawada, Mangalore,
Calicut, Trivandrum, and Madurai. High concentration of foreign returned
executives are key target customers.
Market Segmentation by
Sourcing Channel: Trade-ins is
the major way of sourcing the premium pre-owned cars in India. It is more
popular in organized method of sourcing an inventory as compared to unorganized
sector. Top three major premium cars sold in India have nearly the same
percentage range in Trade in mode for sourcing the inventory. Demo cars are
mostly sourced in organized and semi organized sector. Buy and sell/Park sell
is the most popular method of sourcing in unorganized sector but commands lower
value for all major brands.
Marketing Strategy: Improved marketing
initiatives such as increased presence and regular surveys to gauge consumer
perception to plan their strategies have positively impacted the market. These are
achieved by organizing events inviting current and prospective clients and
collecting their feedback over the course of activities and engagements. As the
luxury car market gets more lucrative, other foreign players are expected to
enter the market. Existing companies needs to work on maintaining its reach so
that the impact of market entry by other major known brands such as Mustang,
Tesla, MG Hector, and Acura may not impact its market.
International Influence: Leasing is an emerging
trend in Indian market just like in the US. A lot of traction can be given to
promote the lease for new cars for commercial as well as personal use. This
will boost the sale of both new and used cars in the long run. Majority of the
premium used cars in India are of the European origin. They can form a group or
lobby to push for the reduction in import duty of used cars in India. Traditionally
the market for pre-owned luxury cars was in large metros, but owing to online
classified platforms, the market has expanded. The supply comes heavily from
metros while demand is spread across mini metros and metros.
Pricing and Demand Analysis:
Average
ticket size is usually higher in the organized market for all major brands
owing to certifications offered, better after sales services, trusted financing
options and guarantee offered. Usually, the difference is observed to be of INR
2 Lakhs for top 5 brands. The ratio declined as compared to 2016 owing to huge
marketing discounts for both new and used cars, also termed as the “year of
discounts”. GST and demonetization however, negatively impacted the market
creating severe cash crunch. GST raised compliance making the dealers obey with
the Unification of taxation (GST). Availability of demo cars and lower
turnaround time has also been responsible for the growth. Mercedes Benz & BMW are most popular brands and demand is
very high in Mumbai, NCR, Bangalore, and Pune. Red & Black-MB, Blue &
White-BMW are in highest demand.
Future Outlook: Future for
premium used car in India looks compelling and replicating of consumer
preference from the western economies is expected. Leasing of cars and lower ownership
period are expected to have positive impact on demand as quality products will
be available at affordable value. Audi’s market share has declined considerably is expected to
gain some market. New entrants in the electric car segments and implementation
of Bharat-VI norms may cause many existing car owner to sell their cars causing
decline in the average ticket size.
Key Segments Covered:-
India Premium Used Car Market
Segmentation by Market Structure (Organized/Unorganized & C2C),
India Premium Used Car Market Segmentation
by Car Made/Brand (BMW, Mercedes Benz, Audi, JLR and Other)
Premium Pre-Owned Car Dealers (MB
Certified, Audi Approved plus, BMW Premium Selection and Jaguar Approved) in
India
India Premium Used Car Market
Segmentation by Sourcing Channel (Buy Sell, park Sell and Trade Ins)
Key Target Audience:-
Online Auto Listing Websites
Premium Car Companies
NBFCs, Insurance Companies and Banks
Used Car Dealers
New Market Entrants
Time Period Captured in
the Report:-
Historical Period: 2013- 2018
Forecast Period: 2019 – 2023
Companies:-
BMW
Mercedes
Benz
Audi
JLR
BBT
Cars
24
Cartrade
Key Topics Covered:-
Used Car Industry Movement
India
Premium Used Car Market Size By Sales Volume and GTV, 2013-2023
International
Market Study: Overview of United States, Japan & Europe Pre Owned Premium
Car Market, 2013-2018
Detailed
Analysis of MB Certified, Audi Approved Plus, BMW Premium Selection, Jaguar
Approved-Dealer Network across various Regions in India
Customer
Profiling-Know your Target Audience
Sourcing
Network and Process Adopted by Premium Car Brands
Premium
Car Exchange
Marketing
and Re-marketing Trends in India Pre Owned Premium Car Market, 2018
Resale
Value analysis
Finance
Support
Snapshot
on Cars24.com and Other Digital Used Car Aggregator (Business Model, Operating
Model, Company Profile, Key Performance Indicator)
Company
Profiles (Company Establishment, Journey, Offices, Showrooms, Management,
Certifications & Others, Company Business/Operating Model, Sourcing of
Inventory, Marketing & Business Strategies , Customer Acquisition
Process, Financials & Others
Analyst
Recommendation
For more information on the research report, refer to below
link:-
Related
Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
