“We have seen the demand for used cars skyrocket from April to August. In April, we did business for $ 130 million, which now amounts to $ 165 million. In terms of units, 7,500 used cars have now risen to 10,000. The used car listings on our platform have grown from 900,000 in April to 1.1 million now, ”said Droom founder and CEO Sandeep Aggarwal.
Most of the jump in sales is in the best-selling models. “Between Q4FY21 and Q2FY22, sales of fast-moving models like Alto 800, Scorpio, Santro and WagonR on our platform increased 55%, 42%, 37% and 23% respectively,” said Amit Kumar, CEO of OLX Autos. This has also meant an increase in prices. “Prices are up 5%, but used cars are still a bargain,” said Aggarwal of Droom. “The price of the best-selling models went up between 3 and 10%,” said Kumar of OLX.
Used car marketers say the current chip shortage in the auto industry, which has boosted production ahead of festival season, will further boost used car sales. “Now that the automotive industry faces the crisis of shortage of chips, production will experience a significant decline in the coming months. With the upcoming holiday season and the decline in new car production, the demand for used cars is expected to witness a significant rebound, ”said Kunal Mundra, Cars India CEO, CARS24.
New car dealers have already said that with stocks around 25 days, the festival season will be lackluster this year because auto companies won’t be able to produce enough. Used car inventory has also dropped due to high demand, from 19.2 days in January-March to 18.7 days in July-September.