India Used Car Market Outlook to 2020
Growing Preference and Emergence of Web Aggregators
July 2015
98
About the Report
About the Report
The unorganized used car market in India still captures a large part of this industry but this has not stopped the organized sector from growing because the latter still remains largely untapped. Apart from segmenting this market on the basis of its organizational structure, it can also be further segmented according to the types of used cars such as the A and B segments (Entry level and Compact cars of length below 4 meters) which contributed nearly ~% to the volume of the entire market as recorded in FY’2015. The used cars market has penetrated largely in the tier 1 and tier 2 cities. The domestic used car market has been constantly evolving and even though most of the major players have made their entry in the used car segment of the industry, many carmakers are still to realize the potential of this market. The market size in terms of used car sales value was INR ~ billion in FY’2015 and this value is expected to grow further in the next few years with the online players increasing their presence in the market and the changing outlook of the people towards second hand cars. The C2C channel contributed ~% to the total revenue generated by the used car market in India and its contribution amounted to INR ~ million as of FY’2013 which decreased to ~% of the market share in FY’2015 due to the entry of the online auto portals in the market.
The number of Maruti True Value showrooms which sell used cars in India at present is the highest as compared to that for other organized players in the market such as Mahindra First Choice, TATA Motors Assured, Hyundai, Honda and Toyota. In FY’2013, Maruti True Value had a market share of ~% in the entire market. In terms of value, the industry is expected to grow at a rate of ~% over the period FY’2016-FY’2020 with the revenue reaching to INR ~ billion by FY’2020 from INR ~ billion in FY’2016. Over the historical years, FY’2010-FY’2015, the economic slowdown and a decline in the value of rupee have also helped the second hand car market to develop at a considerable rate in the past.
The online used car market in India generates a large portion of its revenue through advertisements. These advertisements are broadly classified into three types namely, search advertising, display advertising and classifieds. The revenue generated by the online used car market in India witnessed a consistent increase from FY’2010 to FY’2015, recording a CAGR of ~% during the period. Some of the major online used car players such as CarDekho.com entered in 2008 which increased the pace at which the overall market was growing. The revenues of the overall market in FY’2015 reached to INR ~ million with a sound growth rate of ~%. The market is expected to grow at a faster pace in the coming future with the changing outlook of the consumers in India towards the used cars and online purchasing. In FY’2015, out of the total transactions taking place on the online platform ~% took place through CarWale.com. Nearly ~% of these transactions took place through OLX and ~% through QUIKR. With rising disposable income of the households, the buyers spending capacity on used cars is also expected to spur in the future. At present, majority of the buyers purchasing online have a maximum budget of INR ~, however, with rising incomes, the budget might increase, thereby leading to greater revenue for the market
CarWale.com had a market share of ~% in terms of the volume of online used cars sold in FY’2013, which has reduced to ~% in FY’2015. Car Dekho.com acquired ~% market share during the year. This was followed by Gaadi.com (now a part of Cardekho only) which held a market share of ~% in terms of the total volume of online used car sold in FY’2015.
- The market size of the Used Car Market
- Market segmentation of the used car market on the basis of organizational structure, types of used car, types of distribution channels, types of marketing channels and major cities.
- Trends and Development in the used car Market.
- Market share and detailed company profiles of the major used car Players in India.
- Future Outlook and Projections of Used Car Market
- The Market Size of Online Used Car Market
- Business Model of Online Used Car Market
- Market Share and Detailed Company Profiles of Major Players in Online Used car Market
- Future Outlook and Projections of Online Used Car Market
Products
Products
Used Car, Entry Level, Compact cars, Mid Size Used Cars, Luxury Cars, Executive Cars, Used Car Dealers, C2C, B2B, B2C Used Car Sales, Multi Brand Show
Companies
Maruti True Value, Tata Motors, Mahindra First Choice, Hyundai Advantage, Honda Auto Terrace, Carwale.com, CarTrade.com, CarDekho.com, Zigwheels.com, Olx, Quikr
Table of Contents
Table of Contents
1. India Used Car Market Introduction
2. Value Chain Analysis of Used Car Industry in India
3. India Used Car Market Size
3.1. By Volume, FY’2010-FY’2015
3.2. By Value, FY’2010-FY’2015
4. India Used Car Market Segmentation
4.1. By Organizational Structure
4.1.1. By Value, FY’2013 and FY’2015
4.1.2. By Volume, FY’2010-FY’2015
4.2. By Types of Used Cars
4.2.1. By Value, FY’2013 and FY’2015
4.2.2. By Volume, FY’2013 and FY’2015
4.3. By Type of Distribution Channels, FY’2013 and FY’2015
4.4. By Type of Marketing Channels, FY’2013 and FY’2015
4.5. By Major Cities in India by Volume, FY’2015
5. Trends and Developments in Used Car Industry in India
Increasing Popularity of Used Cars
Emergence of Online Auto Portals
Greater Offerings to Customers by Online Channels
6. Government Regulations in Used Car Industry in India
Regulations on Import of Used Cars
Bank Loans for Used Cars
7. Market Share of Major Players in the Used Car Market in India
7.1. By Volume, FY’2013 and FY’2015
7.2. By Revenue, FY’2015
8. Company Profiles of Major Players in Used Car Industry in India
8.1. Maruti True Value (MTV)
8.1.1. Business Overview
8.1.2. Certification Process of Used Cars by MTV
8.1.3. Business Strategies
8.2. Tata Motors Assured (TMA)
8.2.1. Business Overview
8.2.2. Certification Process of Used Cars by TMA
8.2.3. Business Strategies
8.3. Mahindra First Choice Wheels Limited (MFCWL)
8.3.1. Business Overview
8.3.2. Certification Process of Used Cars by MFCWL
8.3.3. Business Strategies
8.4. Hyundai Advantage (HA)
8.4.1. Business Overview
8.4.2. Certification Process of Used Cars by HA
8.4.3. Business Strategies
8.5. Honda Auto Terrace (HAT)
8.5.1. Business Overview
8.5.2. Certification Process of Used Cars by Honda Auto Terrace
8.5.3. Business Strategies
9. India Used Car Market Future Outlook and Projections, FY’2016-FY’2020
9.1. Cause and Effect Relationship between Dependent and Independent Factors of the Used Car Market in India
10. India Online Used Car Market Introduction
10.1. India Online Used Car Market Size, FY’2010-FY’2015
10.2. India Online Used Cars Market Model
10.3. India Online Used Cars Market Business Model
10.4. India Online Used Cars Market Customer Profile
10.5. Market Share of Major Players in Online Used Cars Market in India, FY’2015
10.6. Competitive Landscape of Major Players in Online Used Car Industry in India
10.6.1. CarWale.com
Company Overview
Key Performance Indicators of Car Wale and Future Endeavors
Location of Dealerships
10.6.2. CarTrade.com
Company Overview
Key Developments and Future Endeavors:
10.6.3. CarDekho.com
Company Overview
Key Performance Indicators of CarDekho and Future Endeavors
Location of Dealerships
10.6.4. Zigwheels.com
Company Overview
Key Performance Indicators of Zigwheels and Future Endeavors
10.7. India Online Used Car Market Future Outlook and Projections, FY’2016 – FY’2020
11. Macroeconomic Indicators of India Used Car Market: Historical and Projections
11.1. Total Passenger Vehicle Sales in India, FY’2010-FY’2020
11.2. Personal Disposable Income in India, FY’2010 – FY’2020
11.3. Population in India, 2010-2020
11.4. Number of Internet Users in India, 2010-2020
12. Appendix
12.1. Market Definition
12.2. Abbreviations
12.3. Research Methodology
Data Collection Methods
Approach
Variables (Dependent and Independent)
Multi Factor Based Sensitivity Model
Final Conclusion
12.4. Disclaimer
List of Figure
Figure 1: Linking of the Value Chain of India’s Automotive Industry with Used Car Market in India
Figure 2: India Used Car Market Size by Number of Cars Sold in Million Units, FY’2010 – FY’2015
Figure 3: India Used Car Market Size by Revenue Generated in INR Billion, FY’2010 – FY’2015
Figure 4: India Used Car Market Segmentation by Organized and Unorganized Market Structure on the Basis of Revenue Contribution in Percentage (%), FY’2013 and FY’2015
Figure 5: India Used Car Market Segmentation by Unorganized and Organized Market Structure on the Basis of Volume Contribution in Percentage (%), FY’2010-FY’2015
Figure 6: India Used Car Market Segmentation by Types of Cars on the Basis of to Revenue Contribution in Percentage (%), FY’2013 and FY’2015
Figure 7: India Used Car Market Segmentation by Types of Cars on the Basis of Contribution to Volume in Percentage (%), FY’2013 and FY’2015
Figure 8: India Used Car Market Segmentation by Types of Distribution Channels on the Basis of Contribution to Revenue in Percentage (%), FY’2013 and FY’2015
Figure 9: India Used Car Market Segmentation by Types of Marketing Channels on the Basis of Contribution to Number of Used Cars Sold in Percentage (%), FY’2013 and FY’2015
Figure 10: India Used Car Market Segmentation by Major Cities in India on the Basis of their Contribution to Volume in Percentage (%), FY’2015
Figure 11: India Used Car Market Share of Major Players on the Basis of Contribution to Revenue in Percentage (%), FY’2015
Figure 12: Sales of Used Cars of Maruti on the basis of the Period of the use of the cars by First Owners in Percentage (%), in FY’2014
Figure 13: Sales of Used Cars of Hyundai on the basis of the Period of the use of the cars by First Owners in Percentage (%), FY’2014
Figure 14: Sales of Used Cars of Honda on the basis of the Exchange Period of the use of the Cars in Percentage (%), FY’2014
Figure 15: India Used Car Market Future Projections by Revenue in INR Billion and Number of Used Cars Sold in Million, FY’2016-FY’2020
Figure 16: Top 10 Most Popular Models of Used Cars Sold Online in India in Percentage (%), 2013
Figure 17: Consumer Preference of Cars in Online Used Cars Market in Terms of Utility Vehicles, Hatchbacks, Sedans and Luxury in India in Percentage (%), FY’2015
Figure 18: India Online Used Car Market Size by Revenue Generated in INR Million, FY’2010 -FY’2015
Figure 19: Online Used Cars Market Model
Figure 20: Business Model of Online Auto Portals
Figure 21: Preferences of Online Used Car Buyers across Different Types of Used Car Models in India in Percentage (%), 2013
Figure 22: Potential Buyers who searched for Used Cars by Major Online Portals in Percentage (%), FY’2013
Figure 23: Online Used Car Buyers Opting for Petrol, Diesel and Other in Percentage (%), FY’2013
Figure 24: Online Used Car Buyers Opting for Manual and Automatic Transmission in Percentage (%), FY’2013
Figure 25: Preferences of Online Used Car Buyers across Different Brands of Used Car Models in India in Percentage (%), FY’2013
Figure 26: Market Share of Major Players in Online Used Car Market in India on the Basis of Volume of Used Car Sold Through Portals in Percentage (%), FY’2015
Figure 27: Share of the Visitors of Various Domains of Cartrade.com, as of July, 2015
Figure 28: Key Performance Indicators of Zigwheels.com, As of July, 2015
Figure 29: India Online Used Car Market Future Projections by Revenue in INR Million, FY’2016-FY’2020
Figure 30: Total Passenger Vehicle Sales in India in Million Units, FY’2010-FY’2020
Figure 31: Personal Disposable Income in India in INR Billion, FY’2010-FY’2020
Figure 32: Population in India in Million, 2010-2020
Figure 33: Total Number of Internet Users in India in Million, 2010-2020
List of Table
Table 1: India Used Car Market Segmentation by Organized and Unorganized Market Structure on the Basis of Revenue in INR Billion, FY’2013 and FY’2015
Table 2: India Used Car Market Segmentation by Unorganized and Organized Market Structure on the Basis of Number of Cars Sold in Million Units, FY’2010-FY’2015
Table 3: India Used Car Market Segmentation by Types of Cars on the Basis of Revenue Generated in INR Million, FY’2013 and FY’2015
Table 4: India Used Car Market Segmentation by Types of Cars on the Basis of Number of Cars Sold in Million Units, FY’2013 and FY’2015
Table 5: India Used Car Market Segmentation by Types of Distribution Channels on the Basis of Revenue Generated in INR Million, FY’2013 and FY’2015
Table 6: India Used Car Market Segmentation by Types of Marketing Channels on the Basis of Volume Sales in Million, FY’2013 and FY’2015
Table 7: India Used Car Market Segmentation by Top Metro Cities in India on the Basis of Number of Used Cars sold in Units, FY’2015
Table 8: Market Share of Major Players in India Used Car Market on the Basis of Contribution to Volume in Percentage (%), FY’2013 and FY’2015
Table 9: Number of Cars Sold by Major Players in Used Car Market in India, FY’2013 and FY’2015
Table 10: Cause and Effect Relationship between Industry Factors and Expected Industry Prospects of India Used Car Market
Table 11: List of Loan Providers having Tie-Ups with Three Major Online Automotive Portals in India, FY’2013
Table 12: Range of Ticket Prices of Used Cars by Major Segments Listed by the Three Major Online Automotive Portals in India, FY’2013
Table 13: Key Performance Indicators of Used Cars at CarWale.com
Table 14: Customer Preferences and Searches of Used Cars at CarWale.com
Table 15: Key Performance Indicators of CarWale.com, As of July 2015
Table 16: Key Performance Indicators of Cardekho.com, As of July, 2015
Table 17: Correlation Matrix of India Used Car Industry
Table 18: Regression Coefficients Output of Indian Used Car Market
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