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OLX maintains its lead in pre-owned cars, posts 77% sales in 2017

India Used Car Market

OLX extends its leadership in pre-owned cars segment with growth from all areas of business. Every car listing attains more than 1000 views, and approximately 65 per cent of cars are already sold by the first week. In 2017, the transactions on the platform grew by 25 per cent, from 2.4 million units sold in 2016 to 3 million units in 2017.

India: OLX maintains its lead in the pre-owned cars segment, with growth from all the business areas including business sellers, listings and revenue streams.

Going by the industry estimates, the market-size for pre-owned cars is around 3.8 million units, which places OLX as the leader with 77% share of the total industry. On the business front, the revenue generated from the pre-owned cars segment has increased three times in the fiscal year 2017-18, with the extensive support of an active business sellers base, launch of customized solutions and a strong sales support team of 200, operating in 50 different cities.

Every listed car on the platform, gets roughly 1000 views, and more than 65 per cent of cars are sold by the first week. In 2017, the transactions on the platform grew by 25 per cent, from 2.4 million units sold in 2016 to 3 million units in 2017.

In 2017, the new dealer sign ups multiplied in automobile category on the platform. In an attempt of fostering the community, OLX financed a dealer connecting program called Driveathon, an attempt to assist dealers in coming online. OLX ran the program in around 20 cities, covering over 3,000 dealers. As a part of the initiative, OLX educates car dealers about the latest trends in the pre-owned automobile market, hosts workshops with industry experts and promotes knowledge sharing on regulatory developments in the automobile sector. OLX aims to expand the reach of this property to 40 cities in 2018.

The director for Auto Category, OLX India in an interview said that the company is focused on transforming how pre-owned cars are bought and sold in the country. He claimed that 2017 was a good year for OLX, wherein they developed the cars category by robust revenue streams and generating a sustainable business model. The deep understanding of online classifieds has placed OLX in a solid position to take the market forward.

OLX posted a 50 per cent growth in the number of buyers, whereas the seller base increased by 100 per cent in the pre- owned cars category, in 2017. The regional break-up of the car listings demonstrates that 55 per cent of the car sales comes from tier one markets of Delhi, Mumbai, Bangalore, Chennai, Hyderabad, and Kolkata. The remaining 45 per cent of the listings come from tier two cities. OLX reaches over 4,000 cities in India.

The automobile category including cars and bikes, is the largest section on the platform, having 45 percent of the total user visits. Every day over 15,000 cars are listed for sale, on the platform.

According to TechSci Research, the pre-owned car segment in India is expected to grow at a high CAGR due to the growing urbanization, rising middle class and increasing population in the country. Moreover, the rising inclination of consumers towards affordable pre-owned cars and well improved after car sale services are driving the growth of the Pre-Owned Car Market in India. Due to widespread use of internet throughout the country, consumers are now able to buy and sell their cars online at a very good price. This is one of the main drivers for the online platforms like OLX, Ouikr etc

According to the recently published report by TechSci Research, According to India Used Car Market By Vehicle Type, By Sector, By Sales Channel, By Fuel Type, Competition Forecast & Opportunities, 2012 – 2022”, India used car market is projected to reach over $ 66 billion by 2022, on the back of growing population and rising urbanization in the country. Increasing focus of automakers towards setting up used car networks in different parts of the country and growing inclination of consumers towards used cars owing to their affordability and improved after sales services are some of the other major factors expected to boost demand for used cars in India in the coming years. Moreover, market growth is anticipated to be driven by rising penetration of online platforms such as OLX, Quikr, etc., that enable used car dealers to boost their reach to a larger audience.

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