Indian Used Car Market Outlook to 2021

Information about Indian Used Car Market Outlook to 2021

Published on June 13, 2016

Author: PrabhakarRamakrishna

Source: slideshare.net

Content

1. USED CAR MARKET OUTLOOK IN INDIA BY 2021 USED CAR MARKET IS EXPECTED TO GROW THREE FOLDS BY 2021

2. © 2008 Affluent Technology LimitedCONFIDENTIAL: For limited circulation only Slide 2http://www.afftec.com/ LEGAL DISCLAIMER DISCLAIMER Affluent Technology strategic analysis services are limited publications containing valuable market information provided to a select group of customers in response to orders. Our customers acknowledge, when ordering, that Affluent`s strategic analysis services are for our customers’ internal use and not for general publication or disclosure to third parties Affluent Technology does not endorse any vendor, product or service depicted in its research publications Affluent`s strategic analysis publications consist of the opinions of Affluent‘s research and should not be construed as statements of fact Affluent disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose All trademarks, copyrights and other forms of intellectual property belong to their respective owners and may be protected by copyright. Under no circumstance may any of these be reproduced in any form without the prior written agreement of their owner No part of this strategic analysis service may be given, lent, resold or disclosed to non-customers without written permission Reproduction and/or transmission in any form and by any means including photocopying, mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited.

3. © 2008 Affluent Technology LimitedCONFIDENTIAL: For limited circulation only Slide 3http://www.afftec.com/ S. No. Content Page No. 1 Introduction to Used Car/ Pre-Owned Market India 1.1 Summary 10 1.2 Abstract 11 1.3 Top Questions 12 1.4 Study Overview 13 1.5 Scope of The Study 14 1.6 Research Methodology 15 1.7 Typical Pre-owned Vehicle Buying Profile 16 1.8 Industry Ecosystem-Organized sector 17 2 Used Car Market Overview 18 2.1 Drivers and Restrains 19 2.2 Driver Explained 20 2.3 Restraints Explained 22 2.4 Opportunities 23 2.5 Challenges 24 2.5 Porter's Five Forces Analysis 25 3 Used Car Market Forecast by Sales Channel: Volume and Sales Value 26 3.1 INDIA : Annual Growth Forecast by Volume and Sales Value 27 TABLE OF CONTENT Source-Secondary Database, Affluent`s Analysis, Expert interviews

4. © 2008 Affluent Technology LimitedCONFIDENTIAL: For limited circulation only Slide 4http://www.afftec.com/ TABLE OF CONTENT (contd.) S. No. Content Page No. 3.2 INDIA: Market Volume Share by Sales Channel 28 3.3 USED CAR MARKET FORECAST - by Body Type: Hatchback, Sedan and SUV & MPV 29 3.3.1 HATCHBACKS: Market Volume Share 30 3.3.2 HATCHBACK: Annual Growth by Volume and Sales Value 31 3.3.3 SEDAN: Market Volume Share 32 3.3.4 SEDAN: Annual Growth by Volume and Sales Value 33 3.3.5 SUV & MPV: Market Volume Share 34 3.3.6 SUV & MPV: Annual Growth by Volume and Sales Value 35 3.4 USED VEHICLE MARKET FORECAST - by Fuel Type: Petrol, Diesel and CNG &LPG (Region Wise) 36 3.4.1 INDIA: Fuel Type Annual Growth by Volume and Sales Value 37 3.4.2 INDIA: Fuel Type Market Volume Share 38 3.4.3 NORTH REGION: Fuel Type Annual Growth by Volume and Sales Value 39 3.4.4 EAST REGION: Fuel Type Annual Growth by Volume and Sales Value 40 3.4.5 WEST REGION: Fuel Type Annual Growth by Volume and Sales Value 41 Source-Secondary Database, Affluent`s Analysis, Expert interviews

5. © 2008 Affluent Technology LimitedCONFIDENTIAL: For limited circulation only Slide 5http://www.afftec.com/ TABLE OF CONTENT (contd.) S. No. Content Page No. 3.4.6 SOUTH REGION: Fuel Type Annual Growth by Volume and Sales Value 42 3.5 USED CAR MARKET FORECAST – by Transmission Type: Manual, Automatic and AMT and with Body Type (Region Wise) 43 3.5.1 INDIA: Transmission Type Annual Growth by Volume and Sales Value 44 3.5.2 INDIA: Transmission Type Market Volume Share 45 3.5.3 NORTH REGION: Transmission Type Annual Growth by Volume and Sales Value 46 3.5.4 EAST REGION: Transmission Type Annual Growth by Volume and Sales Value 47 3.5.5 WEST REGION: Transmission Type Annual Growth by Volume and Sales Value 48 3.5.6 SOUTH REGION: Transmission Type Annual Growth by Volume and Sales Value 49 3.5.7 HATCHBACK: Transmission Type Annual Growth by Volume and Sales Value 50 3.5.8 SEDAN: Transmission Type Annual Growth by Volume and Sales Value 51 3.5.9 SUV & MPV: Transmission Type Annual Growth by Volume and Sales Value 52 4 Used Car Market Forecast in Top 6 Cities - by Sales Channel: Volume and Sales Value 53 4.1 USED CAR MARKET FORECAST IN TOP 6 CITIES - Annual Growth by Volume and Sales Value 54 4.2 USED CAR MARKET FORECAST IN TOP 6 CITIES : by Body Type - Hatchback, Sedan, SUV & MPV 55 Source-Secondary Database, Affluent`s Analysis, Expert interviews

6. © 2008 Affluent Technology LimitedCONFIDENTIAL: For limited circulation only Slide 6http://www.afftec.com/ TABLE OF CONTENT (contd.) S. No. Content Page No. 4.2.1 DELHI + NCR: Body Type - Annual Growth by Volume and Sales Value 56 4.2.2 MUMBAI + NAVI MUMBAI: Body Type – Annual Growth by Volume and Sales Value 57 4.2.3 HYDERABAD: Body Type – Annual Growth by Volume and Sales Value 58 4.2.4 BANGALORE: Body Type – Annual Growth by Volume and Sales Value 59 4.2.5 CHENNAI: Body Type – Annual Growth by Volume and Sales Value 60 4.2.6 PUNE: Body Type – Annual Growth by Volume and Sales Value 61 4.3 USED CAR MARKET FORECAST IN TOP 6 CITIES : by Fuel Type - Petrol, Diesel and CNG &LPG 62 4.3.1 DELHI + NCR: Fuel Type - Annual Growth by Volume and Sales Value 63 4.3.2 MUMBAI + NAVI MUMBAI: Fuel Type – Annual Growth by Volume and Sales Value 64 4.3.3 HYDERABAD: Fuel Type – Annual Growth by Volume and Sales Value 65 4.3.4 BANGALORE: Fuel Type – Annual Growth by Volume and Sales Value 66 4.3.5 CHENNAI: Fuel Type – Annual Growth by Volume and Sales Value 67 4.3.6 PUNE: Fuel Type – Annual Growth by Volume and Sales Value 68 4.4 USED CAR MARKET FORECAST IN TOP 6 CITIES : by Sales Channel: Volume and Sales Value 69 Source-Secondary Database, Affluent`s Analysis, Expert interviews

7. © 2008 Affluent Technology LimitedCONFIDENTIAL: For limited circulation only Slide 7http://www.afftec.com/ TABLE OF CONTENT (contd.) S. No. Content Page No. 4.4.1 DELHI + NCR: Sales Channel - Annual Growth by Volume and Sales Value 70 4.4.2 MUMBAI + NAVI MUMBAI: Sales Channel – Annual Growth by Volume and Sales Value 71 4.4.3 HYDERABAD: Sales Channel – Annual Growth by Volume and Sales Value 72 4.4.4 BANGALORE: Sales Channel – Annual Growth by Volume and Sales Value 73 4.4.5 CHENNAI: Sales Channel – Annual Growth by Volume and Sales Value 74 4.4.6 PUNE: Sales Channel – Annual Growth by Volume and Sales Value 75 5 Competitive Landscape 76 5.1 OEM Affiliated Dealer 77 5.2 Market Volume of the OEM Affiliated Dealer 78 5.3 Process at the OEM Affiliated Dealership 79 5.4 OEM Affiliated Dealers Profile 80 5.5 Online Platforms 83 5.6 Process at the Online Platforms 84 Source-Secondary Database, Affluent`s Analysis, Expert interviews

8. © 2008 Affluent Technology LimitedCONFIDENTIAL: For limited circulation only Slide 8http://www.afftec.com/ TABLE OF CONTENT (contd.) S. No. Content Page No. 5.7 Dealers and Related Services 85 5.8 Funding in the Industry 86 5.9 New Developments 87 6 Conclusion 88 6.1 Used Car Market Outlook 89 Appendix 90 Abbreviations 91 Source-Secondary Database, Affluent`s Analysis, Expert interviews

9. © 2008 Affluent Technology LimitedCONFIDENTIAL: For limited circulation only Slide 9http://www.afftec.com/ The total market size for used car in India is was approximately 3.3 million units in 2015 and 16.7% of it was through organized market. With sales for new cars still sluggish, carmakers focus seems to have shifted to the larger used car market, which, incidentally, has been showing strong growth of XXXX% in the past few years and it is expected to grow at XXXX% between 2016-2021 The used car business provides add-on value to the car manufacturers by increasing footfalls at showrooms from customers looking for good deals on new cars viz exchange program and loyalty bonus. While it may be profitable as a solo business vertical as well, the growth of the used car market indicates that Indian car owners are maturing and now want to upgrade their vehicles much faster. The average period of car ownership has fallen to about five from seven in about a decade, and will likely edge towards three years as seen in the developed market like the U.S. and Europe. Traditionally in India, people preferred to buy and sell used cars through unorganized channels(via local dealerships /local mechanics). This market slowly started moving online 4-5 years back and now the market has shifted to mobile which has become the most preferred way to buy, sell and find used cars. India has 14,000 used car dealers, of which approximately 1300 are organised. The organized used car space will continue to grow at a very healthy CAGR as they make used car transactions more transparent and ensure fair prices for both buyers and sellers . Maruti TrueValue has a share of more than 70% in the organized used car business and 10% of the entire used car business The growing interest in the used car business is majorly driven by first-time car buyers, usually young people in their first or second jobs ,less than 30 years of age. They are risk averse and reluctant to make large purchases at a time when the country’s economic growth is not guaranteed and job security remains a concern. ABSTRACT

10. © 2008 Affluent Technology LimitedCONFIDENTIAL: For limited circulation only Slide 10http://www.afftec.com/ STUDY SAMPLE SLIDES Source-Secondary Database, Affluent`s Analysis, Expert interviews

11. © 2008 Affluent Technology LimitedCONFIDENTIAL: For limited circulation only Slide 11http://www.afftec.com/ SAMPLE: TOP QUESTIONS 1 What is the growth of Organized used car market anticipated by 2021? 2 What drives the used car market, at the same time opportunities that can be leveraged and challenges which have to be addresses? 3 What kind of body type, fuel type or transmission type is growing to be favoured in the used car market? 4 What will be the growth of used car market in different regions of the country ? 5 Which top 6 cities would dominate this exponentially growing market? 6 Which kind of vehicle per se body , fuel, transmission would see a high growth in these top 6 leading cities? 7 Who are the leading competitors and what are their different strategies to capture the market?

12. © 2008 Affluent Technology LimitedCONFIDENTIAL: For limited circulation only Slide 12http://www.afftec.com/ SAMPLE: STUDY OVERVIEW TOPIC PRE-OWNED/USED VEHICLE MARKET IN INDIA RESEARCH METHODOLOGY The research methodology is based out of secondary data. The information has been gathered from the official website of dealers, online retailers, SIAM and ACMA (government bodies). STUDY PERIOD FY 2014-2021 MARKET FORECAST CY 2016-2021 VEHICLE TYPE Pre-owned/used vehicle: Passenger segment DEFINITION PRE-OWNED/ USED VEHICLE: Vehicles which have been owned by a consumer and then sold in either organized or unorganized sector STUDY FOCUS Organized sector: OEM affiliated dealer, Organized dealer C2C: Peer-to –Peer ,Online platforms Comparison to unorganized market GEOGRAPHICAL LOCATION India NORTH: Delhi +NCR, Punjab, Haryana, Himachal Pradesh EAST: Bihar, Jharkhand, West Bengal, Orissa WEST: Maharashtra, Rajasthan, Gujarat SOUTH: Andhra Pradesh, Karnataka, Tamil Nadu, Kerala CATEGORIZING BODY TYPE: Hatchback, Sedan, SUV and MPV FUEL TYPE: Petrol, Diesel and CNG &LPG TRANSMISSION TYPE: Manual, Automatic and AMT GEOGRAPHICAL REGION: North, South, East and West India TOP 6 CITIES: Delhi and NCR, Mumbai and Navi Mumbai, Bengaluru, Hyderabad, Chennai, Pune MARKET NATURE MATURING MARKET SIZE 3MILION-3.5 MILLION VEHICLE Source-Secondary Database, Affluent`s Analysis, Expert interviews

13. © 2008 Affluent Technology LimitedCONFIDENTIAL: For limited circulation only Slide 13http://www.afftec.com/ SAMPLE: SCOPE OF THE STUDY PRE – OWNED VEHICLE PROVIDERS ORGANIZED SECTOR* OEMs AFFILIATED (/B2C) USED VEHICLE MULTI-BRAND INDIVIDUAL OUTLET (B2C/ C2C) ONLINE MARKET PLACE* (B2B/B2C/C 2C) UNORGANIZED SECTOR LOCAL MECHANIC SHOPS (B2C) AUCTION PLATFORM* (B2B/B2C) Maruti True Value Mahindra First Choice Hyundai H Promise Honda Auto Terrace Tata Motors Assured Toyota U- Trust BMW Premium Selection Das WeltAuto Carnation Mahindra First Choice Wheels Ltd Toyota U-trust CarTrade Quickr Cars OLX Carwale CarDekho Droom Toyota Auction Mart CarDekho Auction Ediig.com Shriram Automall India Ltds. (SAMIL) Copart SCOPE OF THE STUDY Note: * Key Players Source-Secondary Database, Affluent`s Analysis, Expert interviews

14. © 2008 Affluent Technology LimitedCONFIDENTIAL: For limited circulation only Slide 14http://www.afftec.com/ ABOUT ANALYST Bhavna Bhaisare Sr. Consultant - Market Research and Intelligence Email Id: [email protected] Desk: +91 080 41903185 Praveen Kumar Consultant - Market Research and Intelligence Email id: [email protected] Desk: + 91 080 41903917 ANALYSTS REVIEWING COMMITTEE Paruvatharaj Parameswaran Director - Automotive Business Email id: [email protected] Tel : +44 02476158191 Elai Ganesan Director - Business Development Email id: [email protected] Tel :+44 02476 158280

15. © 2008 Affluent Technology LimitedCONFIDENTIAL: For limited circulation only Slide 15http://www.afftec.com/ ABOUT AFFLUENT TEHCNOLOGIES

16. © 2008 Affluent Technology LimitedCONFIDENTIAL: For limited circulation only Slide 16http://www.afftec.com/ FOR FURTHER INFORMATION Prabhakar Ramakrishnan Affluent Technology Limited Coventry CV1 2TT,United Kingdom Tel : +44-02476158281 Mob:+447714622124 Email id: [email protected]

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