The rising aspirational Bharat on OLX
The pre-owned car market is rapidly outpacing new car sales and this trend is expected to continue as the fresh supply of cars enters the pre-owned market. Only a few years ago, it was about a third of the new car market; but in FY2018, it hit 4 million units against the latter’s 3.3 million. The pre-owned car industry is doing well today as consumers continue to aspire for upgrading their lives amidst the Indian economic slowdown. In this case, pre-owned cars offer a distinct pricing advantage versus new ones. Data from our OLX platform suggests that pre-owned cars, as good as new, can be almost 20-30% cheaper as compared to new cars.
The pre-owned car market is currently estimated to be $ 14 billion, and OLX estimates that it will have risen to $ 25 billion by 2023. At 1.4 times the size of the new-car market, pre-owned cars currently comprise a majority of the overall automotive sales in India and will have touched over 5 million units by 2020 and 6.6 million units by 2023.
OLX has been a pioneer in the pre-owned auto category having established its presence in India over the last 10+ years. The auto category records 2.4 billion monthly page views, and over 10 million users use OLX every month to buy or sell a pre-owned car.
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