Around 72 per cent of all used cars sold in India are using the services of OLX, the online marketplace for used goods. Using the statistic, the company said it holds the largest market share in the used car space.
As per industry estimates, there are 275,000 used cars sold in India every month. Latest OLX data suggests that the market leader in the used car space registers over 370,000 listings of used cars per month, out of which 200,000 cars get sold every month.
OLX data implies that the number of cars sold is also bigger than the combined monthly sale of the two largest consumer automobile players in the country. The combined sale value (GMV) of the sold cars on OLX put together is equivalent to $1 billion per month.
OLX is India's top marketplace for used goods including used cars, motorcycles, and household items, commanding 80 per cent market share of the consumer-to-consumer (C2C) trade in the country. The auto category is the largest category by traffic on OLX, generating 45 per cent of the traffic, resulting in 1.3 billion page-views, per month as of August.
Each car listing on OLX is viewed on an average more than 1,000 times, and receives 11 unique buyer responses. OLX also receives 1.2 million buyer enquires on used cars every month. A regional break-up of the car listings shows 52 per cent of them coming from metro markets of Delhi, Mumbai, Bangalore, Chennai, Hyderabad, and Kolkata. The remaining 48 per cent of the listings come from non-metro cities. Last year, 4,000 cities and towns across India sold on OLX.
Maruti Suzuki, Hyundai, Tata, Mahindra and Toyota, are the most popular brands sold on OLX in descending order. While Maruti Alto, Maruti Swift Dzire, Toyota Innova and Mercedes C/E Class are the most popular models in hatchback, sedan, SUV and premium cars, respectively.
"OLX's success in the used cars space is a result of three distinct customer benefits that the platform offers - largest quantity of unique and high quality user-generated listings from car owners, great value for both buyers and sellers because of disintermediation, and maximum traffic driving a steady stream of used car buyers," Amarjit Singh Batra, CEO, OLX India, was quoted as saying by the Hindu Business Line.
"These benefits, put together, have made OLX the most liquid market for used cars," he added.
Growing disposable incomes, better living standards and improved penetration of internet are driving the growth in the used car market in India over the last few years.
According to industry estimates, roughly 1.2 used cars are sold in the country for every new car sold in India. However, when compared to developed economies, the figure is not as optimistic. In the developed world, roughly three used cars are sold for every new car sale.