Pre-owned car sellers see brisk volume growth as chip crunch persists

The market for used cars has been outselling, trend expected to continue

Even as the semiconductor shortage has limited the demand for new cars, the pre-owned car segment is seeing a surge. A preference for personal mobility, availability of multiple organised online platforms, including e-commerce channels, aggregators, and classifieds, have been fuelling growth.

The growth rate of the pre-owned car market is expected to be 1.5x that of the new car market over the next five years. It was 1.4x in 2020-21 (FY21), according to a recent OLX-CRISIL Auto study. It envisages the share of the organised players to increase from 20-22 per cent in 2021-22 to 30 per cent by 2025-26.