Unlocking True Potential of Pre-Owned Car Industry post COVID-19
The mushrooming of the pre-owned car industry over the past few years has resulted in the growth of various players who act as intermediaries in the transaction between buyer and seller, including online marketplaces. However, it is important to note that there are no regulatory provisions for these intermediaries although they are at the center of transactions for pre-owned cars and trade the car multiple times before it is eventually registered in the name of the ultimate owner.
The Motor Vehicle Act, which is the current law on sale, purchase and registration of motor vehicles has been unable to keep up with the changing dynamics in the market, particularly with respect to the role played by intermediaries. Therefore, it is imperative that the Ministry of Road Transport and Highways (MoRTH) revisits the provisions of law, particularly because in absence of any regulatory framework, the operation of the market leads to many concerns.
Chase India, a leading public policy research and advisory firm, and Consumer VOICE, a prominent consumer-centric voluntary organization, today released a comprehensive industry report highlighting the need to define the motor vehicle intermediary as well as regulating and providing policy clarity for the exponential growth of the sector. The report titled, “Unlocking True Potential of Pre-Owned Car Industry post COVID-19”, advocates to build a robust and resilient policy ecosystem for the used car industry.