Online used car sales steadily growing
India saw three online used car platforms -- Droom, CarDekho and Spinny -- becoming unicorns (market cap of over $1 billion) in 2021 and riding the digital wave, the used car sales are expected to grow to 8.3 million units (at a healthy CAGR of 11 per cent) by 2026, a new report showed on Monday.
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New Delhi: India saw three online used car platforms -- Droom, CarDekho and Spinny -- becoming unicorns (market cap of over $1 billion) in 2021 and riding the digital wave, the used car sales are expected to grow to 8.3 million units (at a healthy CAGR of 11 per cent) by 2026, a new report showed on Monday. Data monetisation, in-vehicle connectivity, subscriptions, rental, charging, and long-term maintenance packages are expected to command a large share in the profit pool, according to data provided by Bengaluru-based market research firm RedSeer.
"Reduced period of car ownership among the millennial demographic has also been observed, and is a key contributor to the growth in the used car segment," the report mentioned. Although a booming segment, the used car market comes with its own set of considerations.
"The used car market comprises 30,000 dealers as of now, making it an extremely fragmented space. Of the existing dealers, close to 45 per cent are commission agents or brokers. Most of them have no physical space of business, and operations are bound to be unorganised," the report mentioned.
