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Demand for ‘unboxed’ cars on rise, says OLX

Demand for ‘unboxed’ cars on rise, says OLX

Listing of ‘Unboxed’ cars, ie owned for less than 2 years, are seeing an impressive growth on OLX auto platform, with an impressive 18% y-o-y growth in 2018 over 2017.

While 1.1 lakh unboxed cars were listed on OLX between January – August 2017, the listings jumped to 1.3 lakh between January-August 2018. More impressively, buyer inquiries for such cars jumped 50% in 2018. While this is predominantly a metro trend at present, it is expected to play out in tier 2 and tier 3 cities in the coming months, said an OLX Auto report on Friday.

According to the report, the key growth drivers for unboxed cars, including increased frequent launch of new cars which push the users to upgrade their vehicles more frequently, especially among those who yearn for better tech and newer features. This is further accentuated by rising consumer aspirations, reflected in shortening car ownership cycles.

For buyers, these unboxed cars offer a substantial 25%-30% discount on the market price of the same car model, which is a very attractive deal for the discerning Indian car buyer.

This growth trend is strongly evident in the premium cars category, which is expected to dominate the pre-owned automobile sales this festive season. Listings for premium brands such as Audi, BMW, and Mercedes Benz have grown 49% in 2018. SUVs outsell sedans, on the whole, showcasing the buyer’s penchant towards having a bit of muscle on the road.

Maruti, Honda and Mahindra are the top brands in the unboxed cars segment on OLX. Delhiites lead the seller volume for Unboxed cars in the premium cars category, with 30% share of all listings, while Mumbaikars follow with 20% share. Chennai and Kolkata, with 8% and 5% share, respectively of premium cars listings, are the next biggest markets.

Commenting on the report, Sunny Kataria, vice-president of auto category, OLX India, said: “Unboxed cars represent a fantastic opportunity for buyers to grab a car of their dreams at extremely attractive prices.

Unboxed cars are 30% cheaper than their new counterparts.”

He further said, “Pre-owned cars have always outsold the new cars, and with the increasing trend of Unboxed cars, OLX can bring incredible value and savings for buyers. People are changing cars faster just like their smartphones and this lifestyle trend will give an impetus to the overall car market.” According to him, the pre-owned car market presently stands at 3.8 million units annually and is projected to grow to over 7 million units by 2020. This growth will be underpinned by rapid urbanisation, the ubiquitousness of smartphones, changing consumer needs and an ever-growing population of millennials. Auto is the largest category on OLX, generating 40% of all user visits on the platform.

Source: Financial Express