Most of the Indian manufacturers these days spend more time strategising to gain more market share and more sales. But due to negative buying sentiment and not-so-friendly economic policies, the sales have not been upto the mark. In the meanwhile, the used car market has been showing double digit growth in the past three years and has beaten the new car sales by quite a big margin. It grew 22-25 per cent in last three years as compared to flat growth in new car sales.
But with the recent excise duty cut, many companies have slashed the price of their cars, hoping to gain more foot falls and sales. The used car market is also expected to grow this fiscal as well but with the recent decrease in excise duty, it may impact the business a little by bringing down prices and pushing up volumes.
"If you compare with mature markets around the world, India currently has very small volumes. The US market does about 44 million annual used car sales, about three times the new car sales. But the Indian market, though still in developing stages, is definitely heading that way,” said Nagendra Palle, CEO, Mahindra First Choice.
"The current growth trend is expected to continue. The recent excise cut may impact business a little, bringing down prices while pushing up volumes. But whether new car sales go up or down, the used car business will see an upward trend. An added plus is that the business is getting more organised," he added.
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