New Delhi. India has set three online used car platforms- Drum, Car Dekho and Spinny to become a unicorn (market cap of over $1 billion) in 2021. Riding on the digital wave, used car sales are expected to grow 11 percent to 8.3 million units by 2026. This information has been given in a new report on Monday.
Data monetization, in-vehicle connectivity, subscription, rental, charging and long-term maintenance packages are expected to account for a major share in the profit pool, according to data provided by Bengaluru-based market research firm RedSeer.
Though a fast growing segment, the used cars market comes with its own ideas.
The report noted, “The used car market now comprises 30,000 dealers, which makes it an extremely fragmented space. Of the existing dealers, around 45 percent are commission agents or brokers. Most of them have businesses with has no physical location and is bound to operate.”
Unorganized dealers have low productivity as they face price based competition from unorganized brokers or C2C transactions.
Despite the fact that the used car market has its challenges, digital is playing its part to solve them, as major players are adopting digital best practices and incorporating them effectively into their dealership models.
The findings revealed, “It is estimated that most new car dealerships are now connected online through the OEM online network and benefit from targeted leads (through OEM and auto portals). Out of 30,000 used car dealerships , is continuously spending on at least 4,000 online auto portals.
With the help of a transparent, organized, efficient and technology driven dealership model, the used car segment can bridge the existing gaps.
“Competitive intelligence, high quality data, solid user experience is the need of the hour,” the report said. (IANS)
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