Auto industry experts from OLX Autos, Kia India, FADA, and CRISIL Limited convened together to discuss how the pandemic has fuelled the surge in car prices and the waiting time for new cars. Further, paving the way for potential new car buyers to explore the pre-owned cars market. Moreover, with digitisation and the pandemic restricting customer movements, the digital medium has introduced additional platforms for dealers to showcase and sell their vehicles.
Organised in association with Autocar India, the OLX Auto Talk 4.0 brings together the who’s who of the automobile industry discussing how buying a car is one of the most crucial decisions for a customer, and further speaking about the untapped opportunities in the pre-owned car market. One of the vital factors that the experts agreed upon was transparency, playing a critical role while buying a pre-owned car. Followed by the need to give a new car experience to a used car buyer, incorporating services like extended warranties, service packages, complete retail experiences, and more.
Sharing their thoughts on the emerging new trend of pre-owned cars and what more can be done, experts said:
Hardeep Brar, VP, and Head of Sales and Marketing, Kia India, said, “Everything that we envision to offer a new customer must be provided to a used car customer. The way we compare the features and services when we sell a new car, we must emulate the same while selling a used car to entice the customers. Cars might be new or old, but what works is the confidence with which we sell our cars. Additionally, transparency is key to selling a used car. When selling a used car to a customer, one needs to be transparent about the services, features, warranties, guarantees that help them make a wise decision. Moreover, as we’ve witnessed that the pre-owned car market is set to grow in the coming years, we’re proud to announce that Kia India is planning to enter the used car market by 2022, once our cars turn three years old.”
Focusing on the challenges associated with selling pre-owned cars, Amit Kumar, CEO, OLX Autos India, said, “The future is phygital. With the pandemic we have witnessed a shift in the consumers’ approach. While consumers now prefer to get their car inspected and picked up from home, they prefer to complete the paperwork digitally. As the pre-owned market calibrates its retail experience to serve customers demands & expectations, the market is expected to grow to 10 Mn used car transactions by 2030. Financing can become a big enabler of growth in the future, and will encourage people to opt for pre-owned cars as their next purchase.”
Elaborating his opinions on the emergence of new platforms and marketplaces, Hemal Thakkar, Director, CRISIL Limited, said, “The pandemic-induced supply challenges and increased holding period is just temporary. Once normalcy returns, the supplies will get back to their original form. Furthermore, the entry of OEMs in the used car sphere has led to the establishment of organised dealerships. Since 25-30% of the market is in the metros and the rest is in Tier 2 and Tier 3 cities, OEMs will play a strong role in influencing the thought processes of people and gaining their trust. The rise of the online marketplace has resulted in price discovery and risk reduction, wherein as and when the industry grows and becomes more organised, deltas will come down.”
Emphasizing the dealer’s view on used cars and how digitization can help their business, Vinkesh Gulati, President, FADA, said, “We work with used cars and offer exchange bonuses to clients. Players like OLX Autos and others have helped us increase the share by helping to compete with unethical practices like changing engine parts, distance traveled, etc. Through heavy publicizing, OLX Autos has helped push the non-organized elements into the organized markets. To date, I feel that the used car market is still facing the issue of transparency, wherein there’s an increase of online transfer of used cars without the right or transparent process or approach. There should be stringent, transparent policies and processes in place.”
The discussion also highlighted a few interesting insights from OLX Autos CRISIL Study’ 21 conducted recently stating that first-time buyers account for 40-45% of pre-owned cars sold in India. Also, digitalisation is playing a significant role in accelerating the growth of the pre-owned automobile segment. The share of organised players (including digital platform sales) to industry sales is expected to increase from 20-22% levels in FY21 to 30% by FY26.
View the complete OLX Auto Talk 4.0 here: www.youtube.com/watchv=C7F_AC2Ii4c.
About OLX Autos
OLX Autos is a global car marketplace that’s transforming the auto industry. A one-stop solution to buying or selling a car, it’s safe, convenient, and offers guaranteed peace of mind for both buyer and seller.
OLX Autos operates more than 450 inspection centres across Asia and the Americas, and online trading platforms for people to buy and sell cars. To date, OLX Autos has bought, sold, and inspected more than 400,000 cars.
OLX Autos is currently active in Argentina, Chile, Colombia, Ecuador, India, Indonesia, Mexico and Peru. It operates under the well-known webuyanycar.com brand in the US, and CarFirst in Pakistan.
OLX Autos is part of OLX Group, which operates one of the fastest-growing networks of trading platforms globally. It serves 322 million people every month in 30+ countries around the world, helping them buy and sell cars, find housing, get jobs, buy and sell household goods, and much more.
For more information, please visit www.olxgroup.com.