The market for the used cars in India is expected to reach $75 Billion by 2023, recording a CAGR of 15.2%
The continuous hike in fuel prices, heavier taxes on new cars and access to offline used car sellers are making the proposition of buying a used car more acceptable to Indian consumers.
In recent years, this growing market has given a boost to plenty of second-hand automotive companies. The market for the used cars in India is expected to reach $75 Billion by 2023, recording a CAGR of 15.2% during the forecast period.
One of the leading second-hand automotive companies, OLX has collaborated with Frontier Car Group (FCG) to launch its offline used car selling stores called ‘Cash My Car’. Germany-based FCG, via this partnership, has made its first step into the Indian Market. FCG builds and operates pre-owned automotive marketplaces within emerging markets such as Nigeria, Mexico, Chile, Pakistan, and Indonesia.
Currently, 27 Cash My Care stores are operational across 10 cities, and the company is looking forward for aggressive expansion. They are eyeing to open 150 stores by the end of 2021 across 40 cities.
A Symbiotic Relationship
To build and operate Cash My Car stores across cities in India, OLX and FCG have decided to share their technological resources, expertise and knowledge.
As part of the joint venture, FCG will help set up the technology back-end for Cash My Car and later on help scale the business in terms of operations. OLX will leverage on FCG's know-how of emerging economies, expertise in scaling offline automotive platforms and building infrastructure tailored to the local environment.
With OLX’s Offline store, users can now either sell a pre-owned car directly on the OLX online platform, OLX Auto or offline at a Cash My Car local store. An OLX Cash My Car authorised vehicle inspection agent will physically inspect the condition of the car and the documentation. On the basis of the inspection, the car is then auctioned online to OLX Cash My Car’s partners across cities. The entire process can be completed in 45 minutes. This will not only save the sellers’ time and energy but will also provide quality assurance to the buyer.
Sujay Tyle, co-founder and CEO of Frontier Car Group, said, “OLX Cash My Car will ease the friction associated with selling pre-owned cars by focusing on pricing, transparency and speed.”