Local Dealers Dominate, But Auto Tech Startups Gain Ground: IBB Report

Recent studies have shown a significant shift in consumer preferences and behaviours when it comes to exploring and purchasing pre-owned vehicles, according to the Indian Bluebook (IBB) report, widely considered the holy grail for the pre-owned car market. It new survey highlights that a substantial 45 per cent of buyers and intenders prefer to explore options through local dealers, overshadowing the 26 per cent who opt for auto tech startups and the 23 per cent who choose OEM-backed platforms. This shift underscores the changing dynamics in how consumers approach car buying in an increasingly digital world.

Also Read: Make, Model, Variants Biggest Consideration For Used Cars: IBB Report

Local dealers continue to hold a strong position in the market, with nearly half of potential car buyers preferring to visit these traditional outlets. This trend suggests a lingering trust and familiarity that consumers associate with local dealerships. The ability to physically inspect vehicles, engage in face-to-face negotiations, and receive immediate post-purchase support are likely factors contributing to this preference.

However, the landscape is rapidly changing with the rise of auto tech startups such as Car&Bike, Cars24, Spinny, and CarDekho. These platforms, which now attract 26 per cent of buyers, offer innovative solutions that cater to the digital-savvy consumer. A seamless online interface, comprehensive car listings, and competitive pricing models have started to appeal to a broader audience, particularly among younger, tech-oriented buyers.

OEM-backed platforms such as Mahindra First Choice Wheels Limited (MFCWL), Maruti True Value, Das WeltAuto (DWA), Hyundai H Promise, and Honda Auto Terrace capture 23 per cent of the market, reflecting a solid niche. These platforms benefit from the trust and credibility of established automotive brands, offering certified pre-owned vehicles with warranties and assured quality. This segment particularly appeals to buyers seeking reliable, brand-backed assurances.

Amidst these preferences, one consistent theme emerges: buyers are predominantly budget-conscious, with 63 per cent prioritising affordability without compromising on quality. This trend indicates that while the market offers diverse purchasing channels, the fundamental buyer concerns remain unchanged. Consumers seek value for money, emphasising the importance of both competitive pricing and high-quality vehicles.

Interestingly, general marketplaces like Facebook and OLX appear less favoured for vehicle purchases. These platforms, while popular for a wide range of goods, might lack the specialised focus and reliability that buyers seek when investing in a car.

The pre-owned car market is witnessing a dynamic shift as digital transformation and consumer preferences evolve. Local dealers remain a stronghold due to their personalized service and immediate support, but the growing influence of auto tech startups cannot be ignored. As these startups continue to innovate and enhance their offerings, they are likely to gain further traction. OEM-backed platforms, with their blend of reliability and convenience, maintain a significant presence.

Ultimately, the market is driven by buyers' need for quality and affordability, underscoring the importance for all players to balance these elements. The future will likely see a more integrated approach, combining the strengths of traditional and digital platforms to meet the diverse needs of today's car buyers.