Some of the major used cars market players are Arnold Clark Automobiles, Asbury Automotive Group, CarMax, Carvana, Emil Frey AG, Maruti Suzuki True Value, TrueCar, and AutoNation.
Global Market Insights Inc. has recently added a new report on the used cars market which estimates the market valuation for used cars to cross $1.5 trillion by 2027 from $1.2 trillion in 2020.
The market is expected to witness a high growth rate due to the significant increase in the availability of used cars through online portals, the report noted.
Websites and smartphone applications allow buyers to conveniently compare and purchase used cars, accelerating the market size, it said.
The used cars industry faced various challenges due to the rapid spread of COVID-19 pandemic during the first half of 2020.
However, the market witnessed an upward trend during the third quarter of 2020 due to the growing demand for personal mobility solutions. Social distancing practices and high priority for personal health are driving the sales of used cars during the pandemic.
The increasing presence of independent dealers in various countries across the globe will provide lucrative growth opportunities for the market growth, the report noted.
Independent dealers offer customers with creatively refurbished cars integrated with in-car entertainment systems. These players also offer a wide range of vehicles of various brands, thereby creating a positive outlook for the industry.
The Asia Pacific used cars market is anticipated to witness a growth due to the proliferation of used car trading services coupled with the increasing number of organised companies in China and India, the report highlighted.
Used car traders in Asia Pacific are offering an array of technology-enabled tools such as virtual online outlets and mobile-based applications for tracking car performance. The increasing adoption of these technologies will contribute to the escalating market growth.
Players active in the used cars market are Asbury Automotive Group Inc., Arnold Clark Automobiles Ltd., Carvana, CarMax Inc., Group 1 Automotive Inc., Emil Frey AG, Mahindra First Choice Wheels Ltd., Lookers PLC, and Maruti Suzuki True Value.
These players focus majorly on strategic partnerships and collaborations to enhance their service offerings. For instance, in January 2020, CarMax Inc. partnered with Edmunds Inc., a digital automotive firm, with an investment of $50 million. The partnership aided the company to boost its digital presence in the industry.
Some major findings:
- Rising emphasis on the adoption of online portals for selling and purchase of used cars is driving the market size. Features offered by online portals, such as comparison of two car models and lucrative financing options, will support the industry.
- Hatchback used cars will foresee a substantial growth rate owing to their compact size and affordable prices, accelerating the market growth.
- The presence of several industry players coupled with the rising adoption of used cars for commercial purpose is augmenting the used cars market share in North America and Europe.
- The diesel segment will witness a steady growth rate owing to the low cost of fuel. The market will also witness a shift toward alternative fuels, such as CNG and LPG, over the coming years.
- Key players operating in the used cars market include Arnold Clark Automobiles Ltd., Asbury Automotive Group Inc., CarMax Inc., Carvana, Emil Frey AG, Maruti Suzuki True Value, TrueCar, Inc, and AutoNation, Inc.
- Major strategies adopted by the market players include mergers and acquisitions and strategic partnerships with other industry players to enhance their market share.
