Used Cars Market Size By Vehicle Type (Hatchback, Sedan, SUV), By Fuel Type (Gasoline, Diesel, Hybrid/Electric), By Sales Channel (Peer-to-peer, Franchised Dealers, Independent Dealers), By End-use (Personal, Commercial), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 - 2028
The used cars market is estimated to grow massively by 2028 owing to increasing disposable income that has raised the purchasing power of the working class.
During the COVID-19 pandemic, the market was impacted moderately due to safety protocols, lockdowns, and containment measures that caused a steep decline in transportation. However, relaxation in these strict rules and regulations as well as better affordability of used cars have created massive growth opportunities for business growth.
Moreover, key participants in the industry have been focusing on expanding their market presence with used cars in untapped regions at competitive prices and innovative technologies, thereby improving overall market dynamics. For instance, in August 2021, CarMax Inc., a leading used cars retailer, announced its expansion strategy in Dallas, Texas. The new expansion project entailed more than 200 job openings, a new technology innovation center, a new auction facility, and a remote customer experience center.
Likewise, in August 2021, Mahindra First Choice Wheels Ltd., an Indian leading used cars retailer, inaugurated 75 new franchise stores across India. With this move, the company accomplished over 1100 outlets across the country, creating a strong position in the domestic industry.
To cite another instance, in March 2022, AutoScout24, a leading European used cars marketplace, launched Smyle, a new digital retailing service for used cars. This service was intended to allow customers to buy used cars online and have them delivered to themselves directly.
The used cars market has been categorized by fuel type, vehicle type, end-use, sales channel, and region. The vehicle type segment is majorly classified into Hatchback, Sedan, SUV, and others. The hatchback vehicle type segment is likely to expand substantially due to high availability of compact and affordable hatchback car models. The SUV vehicle type segment is likely to observe strong growth through 2028 owing to the ability of these vehicles to navigate diverse terrains.
With respect to fuel type, the market has been divided into gasoline, diesel, hybrid/electric, and others. The gasoline segment is anticipated to witness notable growth by 2028 due to rising demand for used cars operating on low-cost fuel.
With regards to sales channels, the used cars market has been segregated into peer-to-peer, franchised dealers, and independent dealers. The peer-to-peer sales channel segment is expected to progress at a notable pace through the study timeframe on account of increasing penetration of online channels that allow buyers to conveniently compare as well as purchase used cars.
In terms of end-use, the market has been split into personal and commercial. The personal segment is estimated to record considerable revenue growth by 2028 driven by soaring demand for used cars due to rising disposable income.
In the regional landscape, the Middle East & Africa used cars market is likely to observe significant progress as a result of growing consumer preference for refurbished used cars in the MEA region.
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