Chennai: The used car market is enjoying an abundance of requests, especially for the best-selling mass market model, because new car production continues to be influenced by semiconductor deficiencies.
As a result, used cars have seen a price increase of 5-10% and online transactions have jumped by 25% on an organized player platform such as DROOM, OLX, Cars24 and others in the April-August period.
“We have seen demand for used car shooting through the roof from April to August.
In April, we did business $ 130 million, which now reached $ 165 million.
In terms of units, 7,500 used cars have now reached 10,000.
List of used cars on the platform We have increased from 900,000 in April to 1.1 million now, “said DROOM Founder-CEO Sandeep Aggarwal.
Most of the leaps in sales are in the best-selling model.
“Between Q4FY21 to Q2FY22, sales of fast moving models such as Alto 800, Scorpio, Santro and Wagonr on our platform have increased by 55%, each 42%, 37% and 23%,” said CEO OLX Autos Amit Kumar.
This also means price increases.
“The price rose 5%, but used cars were still cheap buying,” said Gagarwal MROOM.
“The price of the best-selling model rose 3-10%,” said Kumar Olx.
Car marketers who have previously possessed said that the lack of chip is ongoing in the automotive industry – which has reached the production ramp-up before the festival season – will then increase the sale of used vehicles.
“Now the automotive industry faces a chip lack crisis, production will see a significant decline in the coming months.
With the upcoming celebration season and a decline in new car production, the demand for cars that have been previously owned is expected to watch significant uptick,” said Kunal Mungra, CEO Cars India, Cars24.
The new car dealer has said that with shares around 25 days, the festival season will be LOYO this year because car companies will not be able to produce enough.
The used car inventory has also dropped due to high demand – from 19.2 days in January-March to 18.7 days in July-September.