Note ban, GST, BSIV norms made a dent in pre-owned car market: Report

The segment grew 6% lesser in the previous fiscal against projected growth of 15%

The demonetisation coupled with GST and BSIV norms seem to have made a dent in the domestic pre-owned car market with the segment growing six per cent lesser in the previous fiscal against the projected growth of 15 per cent, as per an industry report.

However, at the same time, the Centre's decision in November last year to ban Rs 500 and Rs 1,000 notes, which were subsequently replaced with new Rs 500 and Rs 2,000 notes, and greater access to credit have allowed for increased finance penetration in the organised segment, IndianBlueBook, a vehicle pricing research platform, said in a report released today.

The 3.6 million pre-owned car market grew at nine per cent as the demonetisation reduced market size by two lakh units or an estimated six per cent of the overall used car sales market, it said.

Over the past year, the market has been hit by significant "jolts" in the form of three major market reforms -- demonetisation, BSIII/BSIV and GST, it said.