By Kaushik Narayan
The pre-owned phase within the automotive trade 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, gas kind, color, tyre kind and tread put on, mileage lined and physique situation was distinctive for every asset accessible on the market
·Location: It was tough to know which vendor had what belongings accessible on the market. Previous to digitalisation, patrons needed to go to a number of used automotive retailers to know what was accessible on the market
·Assessing car high quality: Autos have been assessed utilizing offline inspection stories that weren’t standardised or accessible for the client to overview
·Pricing the asset: Asset pricing was not accessible publicly
·Vendor belief: There have been no means to know if sellers may very well be trusted aside from phrase of mouth or going by market status
Digitalisation and Covid supplied a singular alternative for sellers and patrons to handle these main considerations. The options which have emerged have made the trade stronger, extra resilient and prepared for the subsequent stage of progress. A current research within the US discovered that used automotive patrons spent over 30% extra time on analysis compared to a brand new automotive purchaser because of digitalisation. Acceleration because of digitalisation was primarily as a result of following components:
·Emergence of platforms for itemizing: The appearance of platforms like Cars24, Cardekho, OLX and Leaptrucks has made itemizing and looking belongings quite simple and simple for patrons. Sellers can record their autos in a brief time period and patrons can find autos they’re fascinated with very simply additionally
·Realtime inspection report availability: Detailed inspection stories at the moment are made accessible to prospects for autos that match their necessities. These stories could embrace detailed details about the car, the combination, battery and tyre situation and particulars concerning any harm to the physique of the car.
·Use of AI for detecting car high quality: The appearance 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 accessible that present a variety of costs for belongings based mostly on their producer, age, options, specs and placement. This has led to transparency in pricing belongings.
·Vendor rankings: On-line rankings 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 trade. This in flip assist organise this phase and in flip drive trade progress. This in flip has contributed to strong progress 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 change into an necessary driver of progress within the new automotive gross sales phase, as increasingly more prospects want to improve their autos. At Kia India, we now have seen the advantages of this development first-hand, as a lot of our prospects have chosen to commerce of their previous 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 trade,” Hardeep Brar, VP and Head, Advertising & Gross sales, Kia India, stated.
Used automotive sellers and platforms additionally consider that the belief in autos bought may be additional elevated with entry to service information from Unique 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 client 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 appearance 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 vans, buses or building equipment. Views are private)
