According to Statista, in 2020, the used cars market, consisting of organised and unorganised players, had over 4.2 million units across India. Amidst the COVID-19 pandemic, the market saw rapid growth on the back of affordability, hindrances in the production of new vehicles, etc.
And, Delhi-headquartered OLX Autos, founded in 2020, is one such startup consistently working in the used cars market to scale up business and establish a name.
Amit Kumar, CEO of OLX Autos, said the industry has grown rapidly in the last decade, but the pandemic has caused a lot of shifts in consumer trends.
“People wanted to avoid shared transport and shared mobility, and masses with resources opted for used cars, which brought in a shift and the used cars market grew quite rapidly,” he said.
Expected to grow rapidly at around 15 percent CAGR, Amit added, “By 2030, in India, you should see close to 10 million used cars transactions on an annual basis.”
OLX Autos gets about 22,000 listings a day. As compared to the pre-COVID times, the startup is ahead in both demand and supply.
However, since the demand has exceeded supply, creating a gap, the startup is seeing a strengthening of prices on key car segments. “Generally, across the board, you could see a 5-10 percent strengthening of prices in India,” Amit added.
At present, OLX Autos runs over 150 retail outlets across India. Amit said, “Our last campaign, ‘Price nahin, surprise milega’, has gotten us on a very good growth trajectory.”
This year, the used car startup intends to continue on its growth trajectory and plans to focus on the marketing side to see significant results in its business as the used cars market expand.
However, it does not share a fixed business plan with YourStory, considering the pandemic situation.
Edited by Suman Singh