How the used car industry is driving the nation’s startup culture

New Delhi: Over the past decade, the used car market has shown very promising characteristics that have only amplified with the onset of the pandemic. With financial constraints everywhere, people have become thrifty by reconsidering their wasteful spending. But given the growing health and safety concerns for personal mobility, coupled with the shortage of semiconductors, used cars have paved the way for the most viable solution to the problem.Read also – Good news! Audi set to unveil new version of A8 in India, reservations will open in coming days

The more affordable slice of used cars versus new cars has been instrumental in giving the industry a boost during the pandemic and the trend is not going to become obsolete in the near future. Considering the immense potential of the segment, the sector is expected to reach over 70 lakhs in vehicle sales by 2025-26 from the 38 lakhs marked in 2020-21. The used car market is booming like never before and start-ups are nimble enough to capitalize on this promising opportunity. Also Read – As Fuel Price Rise Rally Continues, Electric Vehicle Registration in Delhi Shows Major Spike

Previously, the used car market was very fragmented, but recent years have seen huge efforts have been made on the ground by organized players where credit can be given to start-ups’ adventure in the hitherto unexplored segment. While the major automotive players were the first to enter the sector in 2001, as early as 2008 start-ups entered the industry. But they have actually gained traction during the pandemic by filling in existing gaps in the industry. Also Read – Honda discontinues Civic and CR-V and halts production at Greater Noida plant

Seizing the opportunity, start-ups have provided new age experience and solutions in the physical and digital sphere while meeting the needs of both seller and buyer. Recognizing the disruption to physical operations, industry players have been nimble enough to offer online services with alacrity to ensure seamless business continuity. This has opened up a whole new latitude for the industry that has accelerated the acceptance of used cars that otherwise would have taken a long time to reach the milestone where they are now.

Dealerships have focused on adding value to the customer experience. They made arrangements to give the same quality of experience that matched expectations when buying a car first hand. By foraying into omnichannel presence across both online and offline channels, start-ups have been striving to reach the maximum number of PAN India customers. They have taken the customer experience to a whole new level by providing in-home test drive services. The incremental changes have proven to be an attractive point allowing customers to freely explore a wide range of options just a click away.

Along with this, the new players have endeavored to give structure to the otherwise dispersed industry by offering end-to-end services involving documentation authentication, financing options, thorough vehicle inspection, pricing seamless, vehicle used credibility building which has played a major role in instilling confidence among customers around the industry.

In order to establish a more comprehensive structure, start-ups have begun to incorporate progressive business models to cater to various industry stakeholders. They have come up with C2B – for selling used cars to the platform, B2C – for selling used cars through the platforms to customers, C2C – online market presence, B2B – the list of used car dealers on the platform.

Additionally, the penetration of used cars in Tier II and Tier III cities has further given the desired boost to the segment where start-ups can exert better inroads into the areas through their extensive network.

The used car industry is on the cusp of promising change and with start-ups emerging as potential players, it can invariably contribute to the economy and at the same time amplify the start-up mission of the country.

About the Author

Smit Garg, MD and Co-Founder, Luxury Ride

Sumit Garg is the CEO and co-founder of Luxury Ride, a latest shopping destination for the most exclusive and compelling pre-owned luxury cars. At Luxury Ride, Sumit oversees various departments and his primary focus is the exponential expansion of Luxury Ride across India. He is also very involved in the daily running of the business in order to get the right DNA that can support the exponential growth of the business and create a solid foundation.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of India.com. The author is solely responsible for any claims arising from the content of this article.)