Used Car boom in India, 15% growth in used car sales expected

Used car business is booming. Thanks to inflation, interest rates and hike in fuel prices. Major car makers in the country have ventured into used car sales such as Maruti, Tata and Mahindra. Recently Mahindra has set its target to sell around one lakh cars in the coming three years. Meanwhile, Mahindra aims to sell around 50,000 cars in the current fiscal compared to 28,000 used cars sold last year.

Reports suggest that the used cars in India are selling like hot cakes and over 25 lakh cars were sold last year across the country. This marked a growth of 20 percent. In the current year, experts are expecting a growth of 15 percent though less compared to last year but it would be quite achievable in the wake of high inflation and rise in interest rate.

Another revelation is that the organized used car market is growing double the pace. If we talk of figures, it is growing at 50 percent. Meanwhile, Mahindra with its unit dealing in used cars-Mahindra First Choice Wheels Ltd has 10 percent market share according to a statement made by the president (operations) Ashesh Dhar. As part of the used car sales in India, Mahindra First Choice is currently targeting 20 cities and it has 136 dealers. In the next three years it would expand its reach in rural areas as well and is hoping to expand the used car dealerships in India to 300, said Dhar in an interview.