44% Of Buyers In Pre-Owned Car Market Lean Towards EVs: IBB Report

The Indian pre-owned car market is witnessing a gradual shift, marked by the slow yet steady acceptance of electric vehicles (EVs) and the emerging trend of car leasing, according to a new report by Indian Blue Book (IBB). Despite significant strides in recent years, both sectors face distinct challenges that must be addressed to facilitate wider adoption.

Electric vehicles in India remain a "work in progress," with their market penetration still at an early stage. This nascent status is reflected in the limited presence of used electric cars in the market. The primary reason for their scant supply is the reluctance of current EV owners to sell. Given the relatively recent introduction of EVs in India, owners are likely to hold onto their vehicles longer, contributing to a smaller pool of used EVs.

Moreover, potential buyers of used EVs face significant concerns regarding battery life. This uncertainty over battery longevity poses a substantial dilemma, making it a critical factor for those considering purchasing a pre-owned electric car. The scepticism is evident from market research: while 44 per cent of respondents show a preference for buying a used EV, a notable 56 per cent remain undecided. This division underscores the broader market's hesitance and the need for more definitive answers about EV battery performance and durability over time.

Parallel to the EV market, car leasing is slowly gaining traction in India. Predominantly established within the B2B segment, car leasing is still in its infancy in the B2C market. One of the significant barriers to its adoption is the lack of consumer awareness. Only 28 per cent of used car buyers are familiar with the concept of car leasing, highlighting a substantial knowledge gap.

Despite this, there is a burgeoning interest in car leasing, with 62 per cent of respondents expressing willingness to consider it in the future. This indicates a growing curiosity and openness among consumers towards the leasing model. The potential benefits of leasing—such as lower initial costs, reduced maintenance responsibilities, and the flexibility to switch cars more frequently—are appealing. However, these advantages remain under-communicated to the broader public.