CHENNAI: Demonetisation and the introduction of BS-IV norms over the last financial year have taken a chunk out of the pre-owned car market, according to data from Mahindra-owned vehicle pricing research platform Indian Bluebook.
The ‘India Pre-Owned Car Market Report, 2017’ put the pre-owned segment’s growth at nine per cent, six per cent lower than the 15 per cent projected for the year. According to data, the impact of demonetisation and BS-IV norms saw the market losing around 2 lakh units, selling 3.6 million units. However, demonetisation also had positive impact, increasing access to credit and allowing for increased finance penetration in the organised segment.
“While these reforms have no doubt disrupted the status-quo, they have necessitated that all stakeholders change with the times and become more organised,” said Mahindra First Choice Wheels’ managing director and CEO Nagendra Palle. “Notwithstanding the short-term hiccups, we strongly believe these market reforms are good for the organised industry in the long term,” he said.