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Used Car Market – India
April 2015

Executive Summary

Market

SAMPLE

 Used car market in India, is currently pegged at around a mn units as per sales volumes
 The used car segment is a major part of the Indian automobile industry, an industry which contributes to
nearly 22% of the country’s manufacturing GDP
 Poised to grow at a CAGR of b-c%, the used car segment is expected to grow at a higher rate than the new
car segment
 The market is majorly dominated by the unorganized sector, however, organized players have been
penetrating rapidly since the last five years
 Preference for used cars is much influenced by price range, brand and model, type of dealers and qualitative
factors like personal experience, view of family/friends and outcome of test drive

Drivers

Drivers &
Challenges

 Favorable Demography and a Healthy Economic
Outlook
 Growing Interest of Organized Players in the
Market
 Growing Automotive Industry
 Online Portals and Increased Internet Penetration
 Availability of More Advanced Cars Driving Preowned Market

Challenges
 Impressive Offers on New Cars Posing
Threat to Used Car Market
 Constantly Fluctuating Fuel Prices
 Cumbersome Process

Major Players

Competition

Player 1

Player 2

Player 3

Player 4

Player 5

Player 6

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•Macroeconomic Indicators
•Introduction
•Market Overview
•Recent Developments
•Drivers & Challenges
•Competitive Landscape
•Direct Investment Scenario
•Strategic Recommendation
•Appendix
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Macroeconomic Indicators (1/3)
GDP at Factor Cost: Quarterly
INR tn

Q1

Q2
2011-12

2012-13

Q3
2014-15

2013-14

Q4

Inflation Rate: Monthly
%

Jul 2013 - Aug 2013

Aug 2013 - Sep 2013

Sep 2013 - Oct 2013

Oct 2013 - Nov 2013

USED CAR MARKET IN INDIA 2015.PPT

Nov 2013 - Dec 2013

4

•Macroeconomic Indicators
•Introduction
•Market Overview
•Recent Developments
•Drivers & Challenges
•Competitive Landscape
•Direct Investment Scenario
•Strategic Recommendation
•Appendix
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Used cars, the new business instrument of Indian auto
sector has carved a niche as a potential area of growth

SAMPLE

Automobile Industry Overview – India
• India's automobile industry is considered to be one of
the fastest growing sectors in the world
 Globally, India holds the 6th position when it comes to auto
sales
 By 2020, Indian roads are expected to cruise the weight of
nearly 9 mn new cars in addition to the billions of vehicles that
already exists
 As per recent trend based on the mindset of the average Indian
population, used car market is the most promising space for
auto sales in the future
 The segment puts automobiles to refurbish and reuse thus
contributing responsibly towards a cleaner earth

• Though sales of new cars remain sluggish, the secondhand car market is increasingly turning into a welcome
source of revenue for car makers

Worldwide Car Sales in 2014*
mn units

Europe Russia

USA

Japan

Brazil

India

China

New Car vs. Used Car Sales in India
New Car

Used Car

mn units

• Prudence of having a used car division has already been
realized by Volkswagen, Ford, Toyota, Hyundai, Tata,
Maruti Suzuki, and even by luxury car maker MercedesBenz

2009

2013

Note: *Figures correspond to light vehicles registration from Jan to Nov, 2014, Unless otherwise mentioned all figures are for financial year Apr to Mar

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•Macroeconomic Indicators
•Introduction
•Market Overview
•Recent Developments
•Drivers & Challenges
•Competitive Landscape
•Direct Investment Scenario
•Strategic Recommendation
•Appendix
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Factors such as increasing share of organized companies in
the business, people switching cars sooner,…

SAMPLE

Used Car Market – Overview (1/2)
• Text

Used Car Market – Market Size and Growth
mn units
X%

2013

2014e

2015e

2016e

2017e

2018e

Note: Market size corresponds to passenger vehicles only, Figures are for financial year Apr-Mar

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…lower prices in the segment and easy availability of loans
are likely to boost demand for second hand cars

SAMPLE

Used Car Market – Overview (2/2)
Segmentation Based on Qualitative Factors

Segmentation Based on Price and Brand

Expected Industry Growth Based on Price Range

Preference of Buyers Depending on the
Type of Seller

Note: The various segmentations regarding consumer preference apart from expected industry growth correspond to a market survey conducted on used car market in the United Kingdoms

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•Macroeconomic Indicators
•Introduction
•Market Overview
•Recent Developments
•Drivers & Challenges
•Competitive Landscape
•Direct Investment Scenario
•Strategic Recommendation
•Appendix
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Investment in Automotive Sector

SAMPLE

FDI Regime – Automotive Industry
Total FDI Equity Inflows over the Years - Overall
INR bn

2009

FDI in Automotive Sector
INR bn

2010

2011

2012

2013

2013

2014

2014 (Apr-Jul)

Top 8 sectors Attracting FDI in India (2014)
INR bn

Service Sector

Construction Telecommunication Computer
Drugs and
Development
Hardware
Pharmacueticals
and Software
USED CAR MARKET IN INDIA 2015.PPT

Automotive
Industry

Chemicals
(Other than
Fertilizers)

Power

11

•Macroeconomic Indicators
•Introduction
•Market Overview
•Recent Developments
•Drivers & Challenges
•Competitive Landscape
•Direct Investment Scenario
•Strategic Recommendation
•Appendix
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Drivers & Challenges

SAMPLE

Drivers

Challenges

Favorable Demography and a Healthy
Economic Outlook

Impressive Offers on New Cars Posing
Threat to Used Car Market

Growing Interest of Organized Players
in the Market

Constantly Fluctuating Fuel Prices

Growing Automotive Industry

Cumbersome Process Repelling
Customers

Online Portals and Increased Internet
Penetration
Availability of More Advanced Cars

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Strong growth of new cars is expected to generate a
consistent demand for them, thus necessitating…

SAMPLE

Growing Automotive Industry (1/2)

Impact

• Text

Domestic Automotive Sales
mn units
Y%

2008

2009

2010

2011

2012

2013

2014

Note: Automotive sales figures is for all car segments

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…a market for the re-use and refurbishment of the old stock
at a constant rate

SAMPLE

Growing Automotive Industry (2/2)
Rising Passenger Vehicle Production

Commercial Vehicles*

‘000 units

‘000 units

B%

A%

2009

2010

2011

2012

2013

2014

2009

Growing Automotive Industry Turnover

2010

2011

2012

2013

2014

Two and Three Wheelers

INR tn
‘000 units
D%

C%

2013

2009

2016e

2010

2011

2012

2013

2014

Note:*Commercial vehicles include small, light, medium and heavy commercial vehicles

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Launch of new cars at low prices and unlimited choice in the
same affecting the demand for used cars

SAMPLE

Impressive Offers on New Cars Posing Threat to Used Car Market

Impact

• Text

New Launches

On Sale Date

Price (INR mn)

Genre

Nissan Datsun Go

Hatchbacks

Honda New Jazz

Hatchbacks

Chevrolet Beat Facelift

Hatchbacks

Maruti New Celerio

Hatchbacks

Tata Indica Vista Facelift

Hatchbacks

Hyundai New i20

Hatchbacks

Tata Manza Facelift

Saloons

Fiat Linea Facelift

Saloons

Hyundai compact saloon

Saloons

Renault Duster Facelift

SUV

Datsun Go+

MPV

Honda Mobilio

MPV

Note: The list is not exhaustive, SUV: Sport Utility Vehicle, MUV: Multi Utility Vehicle)

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•Macroeconomic Indicators
•Introduction
•Market Overview
•Recent Developments
•Drivers & Challenges
•Competitive Landscape
•Direct Investment Scenario
•Strategic Recommendation
•Appendix
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Porter’s Five Forces Analysis

SAMPLE
Impact

Threat of New Entrants
• Text

Impact

Impact
Impact
Competitive Rivalry
Bargaining Power of Buyers

Bargaining Power of Suppliers
• Text

• Text

• Text

Impact

Threat of Substitutes
• Text

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Competitive Benchmarking (2/5)

SAMPLE

Key Ratios of Top 3 Companies – Operational Basis (FY 2014) (1/3)
Gross Margin

%

Player 1

Operating Margin

Player 2

Net Margin

Player 3

• Text

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SAMPLE

Public: Domestic Company – Player 1 (1/5)
Company Information

Offices and Centres – India

Corporate Address

Tel No.
Fax No.
Website
Year of Incorporation

Head Office

Ticker Symbol
Stock Exchange

Products and Services
Category

Products/Services

Key People
Name

Designation

Sectors (EPC)

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SAMPLE

Public: Domestic Company – Player 1 (2/5)
Financial Snapshot
Total Income

Key Ratios
Net Profit/Loss

Particulars

INR mn

INR mn

y-o-y change
(2014-13)

2014

2013

2012

2011

Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed

2011

2012

2013

Return on Working Capital

2014

Return on Assets
Return on Fixed Assets

Financial Summary
• The company earned a net profit of INR - mn in FY 2014, as
compared to net profit of INR - mn in FY 2013
• The company reported total income of INR - mn in FY 2014,
registering an increase of -% over FY 2013
• The company earned an operating margin of -% in FY 2014, an
increase of - percentage points over FY 2013

• The company reported debt to equity ratio of - in FY 2014,
registering an increase of -% over FY 2013

Key Financial Performance Indicators
Indicators

Value (13/01/2015)

Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)

PE Ratio (Absolute)

Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios
Current Ratio
Cash Ratio

Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover

Note : This company has had a fiscal year change on Dec-31, 2011

Improved

USED CAR MARKET IN INDIA 2015.PPT

Decline

21

SAMPLE

Public: Domestic Company – Player 1 (3/5)
Key Business Segments

Key Geographic Segments

Automotive

Information Technology Services

Farm Equipment

Others

India

Overseas

%
%

2011

2012

2013

2014

2011

2012

2013

2014

Business Highlights (1/2)
Description

News

Overview

• Text

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SAMPLE

Public: Domestic Company – Player 1 (4/5)
Business Highlights (2/2)
Description

News

Automotive

• Text

Other Business
Spheres

• Text

Acquisitions and
Achievements

• Text

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SAMPLE

Public: Domestic Company – Player 1 – SWOT Analysis (5/5)

• Text

• Text

S

W

O

T
• Text

• Text

Note : LCV: Light Commercial Vehicles; HCV: Heavy Commercial Vehicles

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SAMPLE

Private: Foreign Company – Player 2 (1/5)
Company Information

Offices and Centres – India

Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation

Head Office

Products and Services
Category

Products/Services

Key People
Sectors (EPC)

Name

USED CAR MARKET IN INDIA 2015.PPT

Designation

25

SAMPLE

Private: Foreign Company – Player 2 (2/5)
Shareholders of the Company

Ownership Structure
Foreign Holdings

Name

No. of Shares held

Total

100.0%
100%

Ownership structure corresponds to Date of AGM: 30/09/2014

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SAMPLE

Private: Foreign Company – Player 2 (3/5)
Financial Snapshot
Total Income

Key Ratios
Net Profit/Loss

Particulars

INR mn

INR mn

2011

2012

2013

2014

Financial Summary

2013

2012

2011

Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios

• The company reported total income of INR - mn in FY 2014,
registering an increase of -% over FY 2013

Leverage Ratios

• The company reported debt to equity ratio of - in FY 2014, an
increase of -% over FY 2013

2014

Profitability Ratios

• The company incurred a net loss of INR - mn in FY 2014, as
compared to net loss of INR - mn in FY 2013

• The company earned an operating margin of -% in FY 2014, an
increase of - percentage points over FY 2013

y-o-y change
(2014-13

Current Ratio
Cash Ratio
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved

USED CAR MARKET IN INDIA 2015.PPT

Decline

27

SAMPLE

Private: Foreign Company – Player 2 (4/5)
Business Highlights
Description

News

Overview

• Text

Services

• Text

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SAMPLE

Private: Foreign Company – Player 2 – SWOT Analysis (5/5)

• Text

• Text

S

W

O

T

• Text

• Text

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•Macroeconomic Indicators
•Introduction
•Market Overview
•Recent Developments
•Drivers & Challenges
•Competitive Landscape
•Direct Investment Scenario
•Strategic Recommendation
•Appendix
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SAMPLE

Direct Investments – Player 1

CD Investments – Geography-wise

Total Investments – Sector-wise
Consumer Discretionary
Industrials
Financials

Asia/Pacific

Information Technology

Europe

Materials

Africa/ Middle East

Energy

United States and Canada

Consumer Staples

Latin America and Caribbean

Telecommunications Service

CD Investments – Segment-wise

Investment Snapshot
• Text

0%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

100

Automobile and Components
Retailing
Consumer Services
Media
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Company Specifics (1/2)

SAMPLE

Recently Disclosed Industry Specific Strategic Alliances within the Last Two Years
Company

Strategic Alliance

Primary Industry

Player 1

Player 2

Player 3

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•Macroeconomic Indicators
•Introduction
•Market Overview
•Recent Developments
•Drivers & Challenges
•Competitive Landscape
•Direct Investment Scenario
•Strategic Recommendation
•Appendix
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Strategic Recommendation (3/4)

SAMPLE

Consumer Insights
Certified Pre-Owned (CPO)

Non-certified Pre-Owned

Private Party

Overall

Condition

Inspection

Warranty

Financing

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Used Car Market – India report is part of Netscribes’ Automotive and Logistics Series.
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