CarDekho and Carmudi are coming together for enhancement
in technology, processes and platform for improving user experience
India: CarDekho, which is one the
leading auto portal for the purchase of new and used vehicle market, announced plans
to acquire Carmudi, an online car classifieds website in Philippines. CarDekho
is owned by Girnar Software Pvt. Ltd. and the company has raised $185 million as
of 2019 from investors such as Sequoia Capital India, HDFC Bank, Hillhouse
Capital, Dentsu Inc., among others. Girnar Software also operates several other
successful online auto platforms including Gaadi.com, Powerdrift.com,
BikeDekho.com and ZigWheels.com.
President and co-founder of
CarDekho stated that, “The company is excited to expand their international
footprint and invest in the new region. Philippines underlying macro
fundamentals make it an extremely promising market. The market demand for new
PVs in the Philippines has grown at a CAGR of 14 % during 2014-2018 with new
car sales crossing 3,80,000 units in 2018. We see this growth as a big
opportunity to digitize the Philippines auto ecosystem and engage with
consumers throughout their online car buying journey. Our strong ecosystem play
has made us a leader in India and Indonesia. And now we are expecting the same
for the Philippines.”
According to TechSci
Research, automotive industry in Philippines is recovering from slowdown
and online car sellers which occupy a small share of the market witnessed relatively
higher growth over the past few years. Acquisition of the Carmudi by CarDekho
will help the latter to expand its presence in South East Asia. Carmudi has a
well-established presence in the country and is known for its powerful search tool
and quality listings. CarDekho will not only digitalize but also simplify the
entire auto ecosystem, consequently, driving the new as well as used vehicle
sales in the country.
According to a report published
by TechSci Research, “India Used Car Market By Vehicle Type (Small,
Mid-Size & Luxury), By Sector (Organized Vs. Semi-Organized/Unorganized),
By Sales Channel (Dealership/Broker Vs. C2C), By Fuel Type (Petrol &
Others), 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.
According to another TechSci Research report, “South East Asia Tire Market By Vehicle Type (Passenger
Car, Light Commercial Vehicle, Medium & Heavy Commercial Vehicle,
Two-Wheeler, Three-Wheeler and OTR), By Demand Category (OEM Vs Replacement),
By Radial vs. Bias, By Rim Size, By Tire Type, By Country, Competition,
Forecast & Opportunities, 2014-2024”, South East Asia tire market
was valued at around $ 11 billion in 2018 and is projected to surpass $ 17
billion by 2024. Anticipated growth in the market is led by rising sales of
two-wheelers and passenger cars as well as expanding overall vehicle fleet across
all the major countries in the region. Moreover, rising disposable income is
boosting demand for premium vehicles across various countries of South East
Asian region, thereby further fueling growth in the region’s tire market.