Droom has just released its annual report for the trends in the Indian used car/bike industry. The said report is based on all the buyer and seller activity online, Droom’s proprietary methodology along with a very large sample of over 1.1 billion visitors, 20K+ automotive dealers, 1,086 cities, 3 million listings, USD 25bn in-listed inventory on Droom platform with 315k sold vehicles and $3.1bn in-sold GMV. The report reveals some interesting trends in the pre-owned car and bike verticals. To start with, a 300% increase has been witnessed in the digital adoption of automobiles. As per Droom, the Covid-19 pandemic has accelerated this digital adoption and the shift is more pronounced among used cars and two-wheelers as opposed to new ones.
Moreover, the customers in India prefer white and silver shades the most and these two colours account for over 50 percent of the total pre-owned cars sold. Another interesting trend is the shift to diesel cars. The numbers went up from 35% of the total pre-owned cars sold in 2015 to 65% by the year 2020. Droom’s annual report also reveals the annual ownership duration for different categories. In order to be specific, the average duration of ownership for cars is 6 years while the same for bikes and scooters is around 5 years and it is 3 years for superbikes.
It has been noticed that the average duration for the ownership of the car has reduced from 66 months in 2019 to 60 months in the year 2020. The report also mentions that Indian and Japanese cars OEMs make up for 55% of total pre-owned cars sold. However, German cars have made more in-roads and have gone up from 10% of total pre-owned cars sold to 18% and Korean cars have gone down from 20% to 12%. Furthermore, the preference for automatic transmission is increasing among the customers in India. The number has gone up 20% to 35% in the last 6 years.
Talking of two-wheelers, the Indian OEMs continue to dominate with 54% market share and 42% by Japanese OEM while the rest of the world account for only 4% of total pre-owned two-wheelers. Talking of the best-selling pre-owned cars, Maruti Suzuki Swift Dzire tops the list while Hero Splendor Plus remains at the throne when it comes to best-selling pre-owned two-wheelers.
Speaking on the annual report and its findings, Sandeep Aggarwal, Founder & CEO, Droom said that at Droom, the team has been building a 21st-century digital platform and ecosystem for buying and selling automobiles. He adds that given the fact that Droom is a pure-play online company and has petabytes of data on buyers, sellers, listings, brands, years, and cities for the automobile, it is always a pleasure to share top insights from this data with the automobile industry fraternity.
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