Pre-owned Vehicles Market: Introduction
- Rise in trend of owning a vehicle among consumers is anticipated to drive the global pre-owned vehicles market. Stringent emission norms and safety regulations have increased the price of new vehicles, which in turn compelling consumers across the globe to opt for pre-owned vehicles, as they offer a more value-for-money proposition; subsequently driving the global pre-owned vehicles market.
Key Drivers of Pre-owned Vehicles Market
- Surge in digital consumer-to-consumer interaction across third-party online vehicle purchase platforms is anticipated to drive the global pre-owned vehicles market. For instance, according to a survey conducted by online platform OLX, in India, the demand for pre-owned/ used vehicles has increased by 25% since February 2020. According to this survey, about 70% consumers have reduced their budget for buying a vehicle, and more than 50% of consumers prefer travelling in their own vehicles. Therefore, the trend for owning a vehicle coupled with low prices of pre-owned vehicles, as compared to their brand new counterparts, is expected to drive the global pre-owned vehicles market.
- Surge in number of consumers purchasing a private vehicle coupled with the global coronavirus pandemic and increased associated need for social distancing is anticipated to boost the global pre-owned vehicles market
- Rise in number of consumers seeking to upgrade their mode of transport from a two-wheeler to a four-wheeler vehicle is expected to propel the global pre-owned vehicles market. In 2019, according to a report published by Mahindra First Choice Wheels Ltd., over 80% of two-wheeler owners prefer a pre-owned vehicle as an option to upgrade their mode of transport. The global pre-owned vehicles market is expected to expand significantly during the forecast period, as pre-owned vehicles are affordable and offer value for money proposition to consumers.
Asia Pacific to account for prominent share of global pre-owned vehicles market
- In terms of region, the global pre-owned vehicles market can be segmented into North America, Europe, Latin America, Asia Pacific, and Middle East & Africa
- Asia Pacific is expected to hold a significant share of the global pre-owned vehicles market owing to the presence high number of potential buyers seeking upgrade from two-wheelers to four-wheeler vehicles
- Consistent focus on EVs and autonomous vehicles in China has prompted the country to export vehicles to countries where emission and safety norms are lenient. For instance, in May 2019, China’s Ministry of Commerce granted permission to export used vehicles to other countries. Following suite, China-based companies started export of used cars to countries such as Cambodia, Myanmar, Nigeria, and Russia.
- The automotive industry in India enacted BS-VI vehicle regulations from April 2020. Consequently, new vehicles are expected to become expensive due to additional technology costs, thereby prompting consumers seeking vehicles with affordable costs to prefer pre-owned vehicles.
Key Players Operating in Pre-owned Vehicles Market
The global pre-owned vehicles market is highly concentrated owing to the presence of top manufacturers. A few key players operating in the global pre-owned vehicles market are:
- Hertz Car Sales
- Penske Cars
- Emil Frey
- Pendragon PLC
- Mahindra First Choice Wheels Ltd.
- Cox Automotive
- Arnold Clark
- Asbury Automotive Group
- Maruti Suzuki True Value
Global Pre-owned Vehicles Market: Research Scope
Global Pre-owned Vehicles Market, by Vehicle Type
- SUV (Sports Utility Vehicle)
Global Pre-owned Vehicles Market, by Fuel Type
- Other (alternative fuel vehicles)
Global Pre-owned Vehicles Market, by Vendor