National Technology Day 2022: How start-ups leveraging tech innovations to organise India’s used car market
Digital-native used car dealers are also using a hybrid or phygital approach – online offerings coupled with physical pan-India outlets to push greater sales. Here, greater elaboration is required on how start-ups are utilising technology in the used car domain.
Imagine if a prospective pre-owned vehicle buyer could undertake the entire journey – right from car search, perusal, purchase, finance, insurance and sales – and get a great deal too while sitting within the safe confines of his or her home. Indeed, this requires no imagination since it is already happening, thanks to the entry of new-age car retailers in India’s used car market, who are providing customers with a seamless, enjoyable experience by leveraging the latest tech tools and innovations.
As per a RedSeer Management Consulting report, the country’s car services and repairs market is slated to touch $25 billion by 2030, rising from $8 billion in 2020 and growing at a CAGR of 12%. The report mentions that online platforms are fast-forwarding the focus on digitising the complete used car ownership journey. By deploying digital technology to offer customers the best services, these new-age players are attracting higher footfalls and increasing margins.
While the used car segment has seen sustained growth for years, many hurdles have hindered greater growth, particularly for unorganised players.
But the advent of digital players has led to the space becoming more professional and organised, enhancing their trust and transparency quotient with customers by offering them multiple benefits, thereby driving faster transactions.
For example, online platforms leverage artificial intelligence, machine learning, data analytics and algorithms for gaining a better understanding of customer preferences, engaging with them and ensuring proper inspection of cars. Where traditional used car players provide a choice of a few dozen vehicles only, digital dealers have portfolios running into thousands across diverse brands that prospective buyers can view for selection.
Digital-native used car dealers are also using a hybrid or phygital approach – online offerings coupled with physical pan-India outlets to push greater sales. Here, greater elaboration is required on how start-ups are utilising technology in the used car domain.
A full-stack used car platform’s hybrid approach allows prospective buyers to view a vehicle online and buy it offline – even vice versa. Consequently, customers have complete control over their car-buying experience. What’s more, they can book at-home test drives. At the predetermined time, the chosen car is sent to their doorstep. Not surprisingly, some at-home test drives convert directly into sales.
Since the online presence is also supported with offline outlets in metros as well as non-metro cities, buyers find it easy to first browse and then buy vehicles after due inspections and test drives. Best of all, the portal allows buyers to have a 360-degree view of all listed pre-owned cars. Prospective buyers can also view photos and a comprehensive report about the vehicle’s maintenance and service history. As a result, customers receive accurate information about a vehicle’s current condition, which is then backed by transparent pricing.
Moreover, each vehicle passes a 200-point inspection before being listed online. Given such measures, buyers are assured that every car is in good condition. All this then comes with a fixed-price assurance. That’s not all. A buyer then receives warranties and guarantees to take care of any possible post-sales problems. Despite all this, if a buyer is unsatisfied after a purchase, a full refund is given on the vehicle’s return, no questions asked, through the full-stack retailer’s 5-day money-back guarantee, subject to certain conditions.
Through all this, one digital device playing a decisive role is the mobile phone. Today, more than half of all car buyers use their smartphones to garner information and insights about prospective vehicles, which includes other specifications and prices.
Finally, the icing on the cake is the option of a contactless purchase of completely-sanitised pre-owned cars via at-home test drives and doorstep deliveries. In the new normal, start-ups are clearly a step ahead of other entities in organising and professionalising the nation’s used car market.
The writer is the Founder & CEO – Spinny, Niraj Singh
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