OLX claims 100% sale of pre-owned vehicles

There has been a tremendous increase in the sales of pre-owned vehicles. Ranging from vintage classics like Royal Vintage Austin to out-of-production Ambassador, Hindustan Contessa, Premiere Padmini and mass models such as Maruti Suzuki Alto, Toyota Innova and Mahindra Scorpio, there has been a stupendous hike in the re-sale market.

There has been a jump of more than 100% in the number of pre-owned passenger vehicle transaction, OLX claimed. The amount has increased to gross merchandise value of $1 billion as compared to $470 million last year.

The top metropols still contribute to 52% of the sales . However, rest 48% is constituted by the transactions that are done from over 4,000 towns and villages such as Pathanamthitta, Ankleshwar, Dindigul and Pimpri.

According to Amarjit Singh Batra, chief executive officer at OLX India, the trend might continue as there are supply-side constraints at present.

"On the seller side, listings are growing by 45 per cent, but on the buyer side, the growth is in excess of 100 per cent. More than half are first-time car buyers with an average age of between 24 and 35 years," Batra told ET.

Around 1.2 million enquiries for about 370,000-odd vehicles listed on the platform are received by OLX on a monthly basis. The company claims that it has managed to the capture 72% of the 3.3 million pre-owned car mark in the country.

Maruti Suzuki Alto, Swift, Dzire, Honda City, Toyota Innova, Mercedes C and E Class are some popular models sold on the platform. Mercedes has the largest number with 1480 listings followed by BMW (1243 vehicles) and Audi (878 vehicles) in the luxury segment.
The pace at which pre-owned passenger vehicle transactions are taking place online shows that the automobile segment has emerged as the strongest and most liquid category for OLX.
(image: indiatimes)