The used car market is rapidly expanding, with buyers and sellers relying on data to make informed decisions. This project aims to analyze a dataset of used cars to uncover insights, trends, and patterns that can benefit potential buyers, sellers, and dealerships. By leveraging data analytics techniques, we strive to identify key factors affecting car prices, fuel efficiency, and overall performance.
- Dataset: A dataset of used cars, including attributes like price, mileage, engine size, power, and more.
- Python: Jupyter Notebook for coding and visualizing analysis
- Tableau: For Dashboard
All necessary resources are included in the repository to reproduce the analysis.
The dataset contains information about used cars, including but not limited to:
Contains over 6,019 rows with complete and incomplete data for analysis.
| Feature | Description |
|---|---|
| Car Age | Age of the car derived from the year of manufacture. (Feature Engineered) |
| Price per KM | Ratio of price to kilometers driven, representing cost efficiency. (Feature Engineered) |
| Fuel Efficiency | Normalized mileage combining Mileage (kmpl) and Mileage (km/kg) for consistent analysis. (Feature Engineered) |
The dataset has been preprocessed to handle missing values, identify outliers, and engineer features for better insights. Key tasks include:
- Handling missing values in mileage, engine size, and power columns.
- Normalizing mileage to accommodate different units (kmpl vs. km/kg).
- Analyzing relationships between features like price, mileage, engine size, and power.
The used car market is a dynamic landscape where pricing, performance, and regional preferences intersect. This analysis of 6,019 vehicles uncovers actionable insights to guide buyers, sellers, and dealerships in navigating this competitive space. Key findings reveal a market sharply divided between premium and economy segments, with opportunities emerging in alternative fuel vehicles and regional targeting.
- Market Polarization: High-performance cars (3000-4000 CC engines, 300-400 command a 212% price premium (₹30 lakhs vs ₹7 lakhs for economy models), signalin strong demand among affluent buyers. Meanwhile, economy brands like Maruti and Hyundai dominate sales volume with fuel-efficient, budget-friendly options (20-21 km/ 25% above market average).
- Regional Nuances: Coimbatore and Bangalore lead premium sales (₹13–15 lakh average while Mumbai and Hyderabad account for 25% of inventory, favoring local brands like Maruti and Honda.
- Fuel Efficiency Trade-offs: Luxury brands (e.g., Lamborghini) prioritize power over efficiency (6–8 km/l vs. economy cars’ 20+ km/l), but alternative fuel vehicles untapped potential with 50% higher efficiency than conventional options.
- Strategic Opportunities: Balancing performance with affordability, targeting high-income cities, and promoting eco-friendly vehicles could unlock growth in a market increasingly driven by value-conscious and environmentally aware buyers.
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High-Performance Vehicles Command Premium Prices: High-performance vehicles with 3000-4000 CC engines and 300-400 BHP are priced at ₹30 lakhs on average, 212% above the typical market rate, reflecting their superior power, luxury features, and advanced technology.
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Affordable Economy Segment with Balanced Performance: Vehicles with 1500 CC engines and 100-150 BHP, averaging ₹7 lakhs, cater to the economy segment, offering a balance of affordability and performance. The price gap of ₹23 lakhs compared to premium vehicles highlights clear market segmentation.
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Luxury Brands Set the Benchmark for High-End Pricing: Luxury brands like Lamborghini, Bentley, and Porsche maintain an average price of ₹76 lakhs, driven by their exclusivity, brand prestige, and superior vehicle quality despite limited availability.
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Volume Leaders Maintain Competitive Edge in Mass Market: Maruti and Hyundai lead in sales with 1,211 and 1,107 units respectively, positioning themselves as reliable, value-for-money options that dominate the used car market.
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Brands like Maruti, Datsun, and Renault, which are priced under ₹5 lakh, offer fuel efficiencies of 20-21 km/l, which is about 25% to 31% higher than the overall average of 16 km/l. This makes them a more fuel-efficient choice compared to the typical car in the market.
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Luxury brands like Lamborghini and Bentley, priced at ₹120 lakh and ₹60 lakh respectively, offer fuel efficiencies of 6 km/l and 8 km/l. This is 50% to 67% lower than the fuel efficiency of affordable cars (20-21 km/l). These vehicles, while less fuel-efficient, justify their higher prices by focusing on performance and luxury.
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Premium Vehicles Show Strong Demand in High-Income Cities: Coimbatore and Bangalore lead in premium vehicle sales, with average prices of ₹15.1 lakhs and ₹13.3 lakhs respectively, indicating a preference for high-end cars driven by stronger purchasing power.
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Market Dynamics in Major Metropolitan Areas: Mumbai and Hyderabad control 25% of the total inventory, with distinct brand preferences—Maruti leading in Mumbai and Honda in Hyderabad, reflecting regional brand loyalties.
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Conventional Fuel Vehicles Dominate, but Efficiency Gains for Alternatives: Petrol and diesel vehicles, making up the majority with 5,951 units, offer an average fuel efficiency of 8 km/l, whereas alternative fuel vehicles, though limited in number (68 units), provide superior fuel efficiency at 12+ km/l.
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Growth Potential for Alternative Fuel Vehicles: The efficiency gap suggests that alternative fuel vehicles have significant growth potential in the market, especially as environmental concerns and rising fuel prices drive consumer interest in more efficient options.
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Focus on High-Performance Vehicles for Wealthy Customers
Invest more in high-performance cars (e.g., with 3000-4000 CC engines) as they appeal to premium buyers willing to pay higher prices. -
Keep Offering Affordable Cars with Good Mileage
Continue promoting affordable cars (e.g., Maruti, Datsun) that offer great fuel efficiency and are budget-friendly for mass-market buyers. -
Target High-Income Cities for Premium Cars
Focus on cities like Coimbatore and Bangalore, where people are more likely to buy expensive, luxury cars due to their higher income. -
Leverage Regional Brand Preferences
In cities like Mumbai and Hyderabad, focus on popular local brands (Maruti in Mumbai and Honda in Hyderabad) to increase sales by tapping into regional preferences. -
Promote Eco-Friendly Cars for Future Growth
With rising concerns over the environment, encourage the adoption of alternative fuel vehicles (like electric or hybrid cars) that offer better fuel efficiency and attract eco-conscious buyers. -
Balance Price and Fuel Efficiency for Better Value
Offer a pricing strategy that highlights the fuel savings of affordable cars, attracting buyers who want both performance and long-term savings.
- Dataset: A dataset of used cars, including attributes like price, mileage, engine size, power, and more.
- Python: Jupyter Notebook for coding and visualizing analysis
- Tableau: For Dashboard
All necessary resources are included in the repository to reproduce the analysis.