The car services and repairs market is likely to grow at a compounded annual growth rate of 12% to reach $25 billion by 2030, as compared to $8 billion last year, RedSeer Management Consulting said in the report.
The sector, fragmented and largely unorganised, has in recent years witnessed an influx of startups that are using technology to provide services—from doorstep pickup to post-service warranty—to customers, the report stated. These companies are also offering services to offline workshops, providing them with affordable spare parts and efficient logistics.
This has resulted in higher margins and increase in the number of footfalls.
“Online platforms are accelerating the focus on digitising the entire journey of car ownership, right from car search, car purchase, car finance, and car insurance to sales of the car which will result in providing a seamless experience to the customers,” the RedSeer report stated.
Ride-hailing firm Ola, which just yesterday
launched its first electric scooter, is likely to start retailing used cars, ET
reported on August 5. ‘Ola Cars’ may launch a pilot in Bengaluru this month.
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The online used-car market, however, is already crowded with CarDekho, Cars24, Droom, Spinny and CarTrade. Droom
recently raised $200 million in a pre-IPO funding round, while
Spinny received $108 million in a Series D funding round in July. Last week, CarTrade’s IPO
was subscribed 20.3 times.
According to the RedSeer report, sales of personal vehicles have received a pandemic boost as people shunned public transport to minimise risk of contagion. Auto sales rose 140% in April-June 2021 after a near wipeout last year on account of the national covid lockdown.
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