recently launched a multi-channel platform, CarWale abSure. The online and offline car retail platform will help solve all problems related to buying used cars, starting from warranty to inspection services.
According to Bhanwari Lal, the trust deficit is one of the most concerning factors when it comes to buying used cars, and thus the industry has not reached its potential. “With this approach, anybody can rest assured that they are buying a product they can trust,” he said.
In the last couple of quarters, the onset of the pandemic disrupted the supply side of the automotive sector.
During a conversation with YourStory’s Daily Dispatch, Banwari Lal Sharma, CEO-Consumer Business, CarTrade, said,
New cars supply is quite constrained, and therefore, getting a car according to one’s preference is not feasible in the current scenario. The demand has been steady since the pandemic, but the supply is hardly catching up.
Founded in 2009, CarTrade is one of the leading automotive portals in India, which provides a seamless experience of buying or selling new, old, or used cars.
As now people are at home, following social distancing norms, they now prefer personal mobility to shared mobility, said Bhanwari Lal.
People want their own cars, but some cannot afford new cars. On the other hand, others can afford it, but they cannot buy a car of their choice due to lack of supply. These customers turn towards used cars whose demand in the last few quarters has been exceptionally high.
In terms of traffic, at CarTrade, initially, there was a dip at the start of the pandemic. However, the company emerged with a 40 percent yearly growth as a winner. “We sit today on the highest ever traffic,” said Banwari Lal.
In fact, general enquiries for cars and bikes have gone up. A majority chunk of growth has come during the last festive season — August 2020. Now, with the upcoming season, the company is only hopeful for further growth.
“Despite the supply constraints, the demand is fairly strong as we see right now,” he said.
Banwari Lal explained the company is still learning as to what it needs to do. In general, cars and bikes are big categories in India and command huge mindshare from consumers in terms of their understanding. However, the penetration of automotive in the country is minimal.
As compared to other developed countries, in India, car penetration is less than 3 percent. There is a lot of headroom for growth, and the company aims to make the organisation as big as possible in the next decade or two.
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