India’s pre-owned automotive market poised to achieve ₹5 lakh crore by FY28: OLX report

India’s pre-owned automotive market is estimated to increase from ₹2.1 lakh crore in FY23 to ₹5 lakh crore by FY28, with a quantity improve from 46 lakh models in FY23 to 85 lakh models over the subsequent 5 years, in accordance with the OLX Mobility Report (beforehand referred to as the Autonote). 

Regardless of challenges in FY22, the pre-owned automotive business exhibited robustness, experiencing a notable 14–16 per cent progress in FY23 attributed to market reopening, elevated choice for private mobility, and rising disposable incomes. Anticipating a 15 per cent progress charge in FY24, the business is outpacing the brand new automotive market, with quantity and worth rising at a CAGR of 13 per cent and 18 per cent, respectively.

Additional, the section is experiencing a shift in the direction of premiumization, with UVs and feature-laden autos gaining recognition, and the electrification pattern is on the rise. The growing gross sales of recent electrical autos reached 59K models in FY23 and 42K within the first half of FY24, with Mahindra, MG, and Tata Motors being the entrance runners. This alerts a shift in each new and pre-owned markets in the direction of sustainable mobility choices

In distinction, the brand new automotive market, regardless of attaining a historic 27 per cent progress in FY23 with 3.9 million models bought, foresees a moderated progress tempo of 6–8 per cent in FY24, projecting a wholesome 5-7 per cent CAGR over the long run.

Siddharth Agrawal, Nation Head, Advertising, OLX India, emphasizes the importance of the OLX Crisil Mobility Report, contemplating it a useful useful resource providing deep insights into market developments and shopper behaviors. The excellent evaluation aids in understanding the evolving dynamics of each new and pre-owned automotive markets, guiding strategic choices and fostering progress on this quickly altering sector.

Rising Developments in Two-Wheeler Section

The Indian pre-owned two-wheeler market, estimated at 27–29 million models in FY23, is predicted to develop at a CAGR of 5-7 per cent, reaching 33–38 million by FY28. Bikes dominate this market, holding about 72 per cent of the market, whereas scooters, with a 25 per cent share, are gaining floor.

Regardless of its progress potential, the market faces challenges like a scarcity of organized gamers, high quality assurance points, restricted financing choices, regulatory complexities, and lesser digital penetration. These hurdles however, components like low market penetration, steady curiosity in new fashions, a shift in the direction of premium two-wheelers, and shorter substitute cycles are more likely to drive its progress.  

Hemal N. Thakkar, Senior Apply Chief and Director at Market Intelligence and Analytics , added, “The sturdy progress in each the brand new and pre-owned automotive markets signifies a return to normalcy in India’s automotive sector post-Covid. Our annual research with OLX captures these dynamic shifts and the transfer in the direction of digital and arranged gamers, that are accelerating the expansion of the pre-owned automotive market.”