Worldwide semiconductor shortages are reducing the production of new cars. People are now moving towards the market of second-hand cars. This is the reason why the second-hand car market has now become costlier by 5 to 10%. As a result, online transactions in online second-hand car platforms like Droom, OLX, Cars24 have increased by 25% in the April to August period.
Car demand was 10 thousand units in April
Sandeep Agarwal, founder, and CEO of Droom says that between April and August. The demand for second-hand cars has increased like rocket speed. Its market was $ 130 million (about Rs 958 crore) in April, which has grown to $ 165 million (about Rs 1,216 crore) in August.
Talking in terms of units, the second-hand car has increased from 7,500 units to 10 thousand units. On Droom’s platform, this figure has gone up from 9 lakh units to 10.1 lakh units in April. Even though the price of a second car has increased by 5 to 10%. There is still space for good bargaining in these cars.
Alto will be in highest demand in second-hand cars
Amit Kumar, CEO, OLX Auto says that in second-hand cars, people are preferring those cars which remain the best-selling models. In the fourth quarter of FY 2021 and the second quarter of FY 2022, sales of Alto 800 were 55%, Scorpio 42%, Centro 37%, and WagonR 23%. The price of the based selling model has gone up by 3 to 10%.
Due to the increase in demand, the stock is decreasing
Kunal Mundra, CEO, CARS24, which sells used cars, says that there is a chip shortage in the auto industry right now, second-hand car sales in the country are expected to increase more than before the festive season. He said that the new car dealers have already said that we have only about 25 days of stock, which will be less for this year’s festive season.
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