Monday, May 20, 2024

Indian Pre-owned Car Market Study’ by OLX Autos in partnership with CRISIL

OLX Autos announced the 5th edition of its Auto report – one of a kind study on the pre-owned car market in association with CRISIL- that estimates the size of the pre-owned car market in India and examines key trends and attitudes towards the sector. A comprehensive report on India’s pre-owned car industry, the study combines OLX Autos’ vast and extensive data, along with CRISIL’s known edge in research and insights to arrive at decisive trends that are shaping the sector.

According to the ‘OLX Autos -CRISIL Study 2021’ the pre-owned market has been outpacing the new car market, and the industry is expected to clock a healthy growth rate of 15% in FY22. As per the study, the prospects continue to be bright on the longer horizon, with a 12-14% CAGR expected over the next few years, taking the size of the market to more than 7 million vehicles by FY26, from 3.8 million units in
FY21. In contrast, the new car market is expected to grow at a tepid 10% CAGR. With many people preferring socially-distanced personal mobility, during and because of the pandemic, the pre-owned car market is expected to continue to be a sunrise sector. In addition, the accelerating trend of digitalization will lead to an increasing share of sales through digital classifieds, which will move to 25% from 15% currently. The share of organised players in the pre-owned market, including digital platform sales, will also see a 10% increase, from 20% currently to 30% in five years.

“The OLX Autos CRISIL- Studybrings in breakthrough insights into the pre-owned car segment. The preference for personal mobility has propelled a huge swing in favour of used-car sales that are expected to reach a phenomenal 1.5x more than that of new car sales over the next five years. The digital switch has been highly transformative, bringing in its wake increased transparency, trust and a huge choice of new generation vehicles to the consumer. The unique customer insights from the study will introduce further innovation in the sector. In order to keep pushing the ball up, to give enhanced comfort and safety to our customers, we are accelerating product development, and have pioneered home and self-inspection services. The new levels of innovation introduce a fresh dose of optimism in the sector.” – Amit Kumar, CEO, OLX Autos India.

“The study is a definitive commentary on the pre-owned car segment. OLX CRISIL Auto Study is a deep dive into the pre-owned car segment giving qualitative insights on changing matrix in the post-pandemic ecosystem, highlighting the key growth triggers, market-wise segmentation, post covid consumer behavior, evolving trends in this landscape, and much more. As a continuous effort annually, this year we partnered with research analyst CRISIL to understand the diverse customer insights and penetrating market trends across the country in elevating the efforts to know the market better, changing customer preferences and evolving customer needs.” – Sapna Arora, CMO, OLX India.

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