EXCLUSIVE: This is what has changed in 2016 for consumers in the online car market

Many things have changed since car e-commerce players such as CarDekho, CarTrade, Droom etc. entered the market, some as old as 7 years back.

The customer has changed preferences and the online market has adapted accordingly.

According to reports, unlike the new car market, India's used car market has had a relatively stable growth. From 1.6 million units (worth Rs 38,500 crore) in 2011, it is today pegged at 3.3 million units (Rs 96,000 crore). According to Nagendra Palle, MD, Mahindra First Choice Wheels Ltd, the used car or pre-owned car market will continue to grow at a steady pace of 15% to touch Rs 2,50,000 crore or 6.6 million units by 2021.

This can be attributed to ownership cycles are shortening — from 6-7 years five years back, it today hovers around four years and is likely to dip further to 3.5 years by 2021. This is helping grow the available pool in the used car market.

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Maruti Suzuki India Ltd, India’s largest car maker, reportedly even said that the local car market will reach 5 million units in annual sales by 2020, making the country the fourth-largest market in the world.

Sandeep Aggarwal, CEO & Founder, Droom told Business Insider that innovation is the need of this market to drive sales. Droom started with being a second-hand car online marketplace and has recently started selling new cars. “We have initiated measures such as pre-approved the loan, Test drive at the doorstep, collaborated a lot of companies for freebies, roadside assistance, and extended warranty to attract customers.

Currently, we are seeing 50-60% traffic in online auto sales’’ says Sandeep when asked about where the company stands after two years of operations.

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Companies like CarDekho have also taken to revamping their customer experience entirely using big-data analysis. From using new technology such as Virtual Reality to 3D technology, the company is making sure that from start (buying), owning to finish (selling) , they assist the customer.

Vinay Sanghi – Founder and CEO, CarTrade agrees with that sentiment. The company is planning to tap the used car financing industry and bridging the gap between customers and lenders in highly fragmented market where only 10% of the used cars are sold by registered sellers.
So if you’re looking to buy a used car, you know that these portals are your best bet. From giving you the right price for a car to after-sales servicing the online car e-commerce space is catering to everything your car might need.