Indian car industry worth Rs. 3 lakh crore annually

Indian car industry worth Rs. 3 lakh crore annually

The automotive industry estimates that the total Indian car market is worth around Rs. 3 lakh crore per a year. Both used cars and new cars come under the category of the Indian car market and worth of Rs. 1.20 lakh crore and Rs. 1.80 lakh crore respectively. The utility vehicles are not included in the segment of cars and the Indian customers looking for best-in-class and affordable models.

Related: Seven new Maruti cars to launch in India by 2017

Mr Vinay Sanghi, CEO of CarTrade.com said the sales number of used cars is higher than the new cars, but the worth of new cars is high. The industry expected that around 15 percent growth of used and new cars in the coming festival month of October to November 2016. In the period of April 2016 to August 2016, the combined sales growth of used and new cars is around 12%.

The used car sales reported the double percent growth compared to the new cars, whereas both segments have received the highest amount of enquiries from the customers. Most of the customers are surfing online for the product reviews, specifications, platforms, prices and best discount offers.

Related: Mahindra DigiSense – New Vehicle Connectivity Program

The used car industry witnessed the growth of around 15 to 16 percent per annum while the new car market is increasing by 6 percent to 7 percent in India. The CarTrade is growing at around 5% to 7% month-on-month.

As per the independent survey in January 2015, 10 percent of the car dealers revealed that a part of their sales received from the online sources. The customer’s enthusiasm in searching for automobiles in online is increasing day-by-day and now, the 60 percent of the car dealers have received the business from the online source pack.

Related: Passenger Vehicle Sales Increased By 16.68% in August 2016

As of now, the car dealers sold around 2.50 lakh new cars in the Indian market in a month and the majority of the sales conversion happened through the online sources. The Carwale and CarTrade websites for automobiles get a total of 5.50 to 6 lakh enquiries for new dealers and buyers, according to Vinay Sanghi. In the coming years, the Indian car industry will be expanded with the high range of affordable cars, which feature the tech-based equipment and platforms.

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