The pre-owned car market has got a boost with the entry of startups like Cars24, Olx Autos, Droom and CarTrade. But there's still a policy vacuum here. Let's understand how it can hit the market
For many of those planning to buy a car and saving for it, things haven’t worked out very well lately. While some have faced a reduction in their earnings due to the Covid-19 pandemic, others have been informed by car dealerships about months-long long queues because of the global semiconductor chip shortage.
So what’s the option? Well, there is the booming used car market. In recent years, startups like Cars24, OLX Autos, Droom and CarTrade have brought a clear disruption in India’s second-hand vehicle market.
According to a recent report, this month…
The prices of used cars on platforms like Droom, Cars24 and Olx have surged 5-10% due to a surge in demand
There has also been a 25% surge in e-transactions on online used vehicle platforms
And the biggest demand has been for best-selling models like Alto, Scorpio, Santro and WagonR
According to the Indian Blue Book, used-car sales this year are likely to be at a four-year high of 4.3 million units. This increased traction for online used car platforms has meant that these startups are attracting investors.
CARS24 has raised $450 million in a Series-F funding round to double down on its growth. This is the biggest funding round for the six-year-old startup.
Last November, CARS24 had raised $200 million in a series-E funding round, which valued it at over $1 billion and made it the first unicorn in India’s auto space.
No comments:
Post a Comment