By Kaushik Narayan
The pre-owned phase within the automotive business was ripe for transformation because the pandemic hit dwelling in India. Challenges confronted by prospects included:
·Uniqueness: Every asset on the market or buy was distinctive. The mix of car options, gasoline kind, color, tyre kind and tread put on, mileage coated and physique situation was distinctive for every asset out there on the market
·Location: It was troublesome to know which vendor had what belongings out there on the market. Previous to digitalisation, patrons needed to go to a number of used automotive shops to know what was out there on the market
·Assessing car high quality: Automobiles had been assessed utilizing offline inspection reviews that weren’t standardised or out there for the customer to evaluation
·Pricing the asset: Asset pricing was not out there publicly
·Vendor belief: There have been no means to know if sellers could possibly be trusted aside from phrase of mouth or going by market repute
·Emergence of platforms for itemizing: The arrival of platforms like Cars24, Cardekho, OLX and Leaptrucks has made itemizing and looking belongings quite simple and straightforward for purchasers. Sellers can checklist their autos in a brief time frame and patrons can find autos they’re excited about very simply additionally
·Realtime inspection report availability: Detailed inspection reviews are actually made out there to prospects for autos that match their necessities. These reviews could embody detailed details about the car, the mixture, battery and tyre situation and particulars concerning any harm to the physique of the car.
·Use of AI for detecting car high quality: The arrival of Synthetic Intelligence helps extra correct estimation of car situation and high quality. This in flip helps enhance pricing estimates for autos
·Emergence of pricing engines: A number of pricing engines are at present out there that present a variety of costs for belongings based mostly on their producer, age, options, specs and placement. This has caused transparency in pricing belongings.
·Vendor scores: On-line scores on Google and Justdial complement phrase of mouth and referrals and assist add a layer of belief for sellers
These modifications have helped speed up transformation within the pre-owned business. This in flip assist organise this phase and in flip drive business development. This in flip has contributed to strong development in new automotive gross sales in 2022-23. A research within the US indicated that Used automotive patrons spent over 30% extra time on analysis versus new automotive patrons prior to creating a purchase order. Digitalisation has supplied these patrons entry to higher high quality data which has helped them make knowledgeable choices.
“Pre-owned automobiles have turn out to be an essential driver of development within the new automotive gross sales phase, as increasingly more prospects want to improve their autos. At Kia India, we’ve got seen the advantages of this development first-hand, as lots of our prospects have chosen to commerce of their outdated automobiles for a brand new Kia. This has helped us to penetrate the Indian market shortly and set up ourselves as a fast-growing and trusted model within the automotive business,” Hardeep Brar, VP and Head, Advertising & Gross sales, Kia India, mentioned.
Used automotive sellers and platforms additionally imagine that the belief in autos offered might be additional elevated with entry to service information from Authentic Gear Producers (OEMs). The supply of detailed car service historical past, insurance coverage claims and accident data will concurrently enhance each the accuracy of car pricing in addition to the arrogance of the customer within the car evaluation.
The digitalisation development within the pre-owned automotive phase continues to remain forward of the 2-wheeler, 3-wheeler and business car segments. Nevertheless, the arrival of platforms like Leaptrucks and emergence of extra demanding prospects who’re digitally savvy and search for transparency will assist speed up the transition to digitalisation within the different segments.
( Disclaimer:Kaushik Narayan is the CEO of Leaptrucks, a Bengaluru-based on-line market for assisted shopping for or promoting of used vehicles, buses or building equipment. Views are private)
