According to a study published earlier this month, the used car market is expected to grow by 19.5% annually until fiscal year 2027 to reach 8 million units.
A recent CRISIL-OLX Auto report suggests that the used car market in the premium segment has seen a sharp rise in demand as well as supply in the first half of this calendar year.
We have just launched a pilot platform for certified pre-owned cars Volvo Select with two dealers India. We want to expand it in a phased manner and we aim to have the platform available on our network by 2023 or early 2024, Jyoti Malhotra, managing director, Volvo Car India, told PTI.
Customers want quality, warranties, guarantees and proper due diligence from manufacturers when it comes to buying a used car, according to Malhotra.
Malhotra also said that volumes could get bigger if the segment is driven by manufacturers.
In this (model), consumers get the right price for the car and buyers also get the right price along with the quality and value of the product, which is what “Volvo Car India is working on,” he said.
Malhotra said the company expects at least one-third of its volume to come from the platform once it becomes functional across the network.
Volvo Car India’s total sales for 2021 stood at 1,724 units, up 27 percent from the 1,361 vehicles sold a year ago.
He said there was good demand in the first half of 2022 with volumes up 17 percent year-on-year at 800-plus units, adding that sales could grow by 25 percent between July and December.
“From a demand point of view, it’s better because we have a good backlog, but we’re still constrained by supply,” he added.
Malhotra estimates that the company could close the year (2022) at around 1,900-2,000 vehicles, which he believes will be “decent growth” given supply chain constraints.
Volvo plans to phase in a fully electric car by 2030. As part of this, Volvo Car India has already switched its Indian car line-up to petrol mild hybrids this month.
In addition, the company has already launched its locally assembled all-electric SUV, the XC40 Recharge, in July this year and plans to launch another electric vehicle by the middle of next year.
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