Used vehicle sales gains momentum post-pandemic: Droom
Hyderabad Droom, automobile e-commerce platform has said that the company has witnessed a CAGR of 44 per cent between 2019 and 2021 and has showcased a steep growth of 58 per cent in 2022 (YTD) owing to the increase in used vehicle adoption during the pandemic.
The Indian online used vehicle market was valued at Rs 154 billion in FY21 and is projected to reach Rs 1,994 billion by FY26, registering a CAGR of 66.9 per cent. Used automobile markets online penetration is expected to be close to 10 per cent by FY26 which is at approximately 2 per cent currently. This projection is the outcome of the shift in customers' preference towards buying of used vehicle online, preference of personal mobility override sharing, unwarranted physical dealership, and availability of multiple price options in used vehicles. Moreover, due to the uncertain economic environment post-Covid-19, used vehicles are witnessing even stronger demand.
In its latest report, Droom also said that the used car market is one of the best performing categories in the automobile industry. Few of the key factors that are driving the growth of India's fast-evolving used vehicles market includes migration from BS4 to BS6 which resulted in hike of new vehicles prices, semiconductor chip shortage and lack of clarity on EV infrastructure.
"The used vehicles market is topping all charts and is now one of the hottest categories in the current times. While Droom has always been on a growth journey, it is still surprising to see this market flourishing at an unprecedented pace. Pandemic turned out as a blessing in disguise for the used vehicle industry and has shifted consumers' preferences towards used vehicles vs new vehicles. We expect this growth to continue in the upcoming months and hope that more and more consumers will make the most of this fast-growing market," Sandeep Aggarwal, Founder and CEO, Droom, said.
Droom has been offering a wide range of automobile categories starting from bicycles to planes to commercial vehicles to earth moving vehicle to EVs and many more on its platform. Droom has 300K on time supply of automobile coming from 1,150 cities across India.