Used cars expected to get doubled in 2014
Though, the last year has not been promising for the car manufacturing companies yet the market for used cars is expected to get doubled in the coming five years in comparison to the new car market. In this fiscal year, Mahindra First Choice Wheels Ltd is planning to sell 60 K units. If they are able to sell this many units, it will be 30% growth in comparison to the last year. 3 million units is the current size of used car market according to the industry experts. 15% is the share of the organized sector.
Expanding used car market
The market for used cars is increasing surely and steadily. Already, it has become bigger and better than the market for new cars. Also, the former is growing at a faster pace. Till March in the current year, the company is planning to sell 60 K units of used cars. Mahindra First Choice or MFCWL is considered to be the top certified multi brand used car companies in the country. The company was growing at a 35% CAGR as far as volumes are concerned in the last five years. More than 7.5 lakh sq ft collective retail footprint has been recorded under the brand MFCL.
Demand of used cars
The demand of used cars has always been increasing at a steady pace. In matured and developed markets like America, the ratio between new cars and used cars is 3:1 which is quite low but in India, the figures are not so depressing. In India, the ratio between new and old cars is 1.2:1. These days, there is little inhibition when buying used cars due to changing lifestyles. It is no longer a social stigma. Recently, the company inaugurated its nineteenth dealership. This is a clear indication that the demand for used cars is increasing in the country.