Product details

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Abstract

On April 15th 2021, okshan.com (Okshan) had announced that it had entered the preowned or used car market in India with the launch of a Business-to-Business (B2B) model. As part of this venture, the company would connect the new car dealers and the used car brokers to allow purchase and sale of used cars on its platform from the assured inventory on a real-time basis. In this regard, it was worth mentioning that the pre-owned or used car market in India was worth USD27 billion in 2020, and the market was projected to register a CAGR of 15% during the forecast period 2020-25. The global Coronavirus or COVID-19 pandemic had also triggered demand in the country's used car market since people, despite their financial insecurity, were more concerned about hygiene, safety and social distancing. As highlighted by the IndianBlueBook report, one of the main reasons behind people's preference towards a pre-owned or used car over a new car was getting a good value for money. Apart from the normal cars, there was also a rise in demand for luxury cars in India's used car market. There were several players in India's used car market like Maruti Suzuki India Limited's True Value, Mahindra & Mahindra Limited's Mahindra First Choice Wheels and Toyota's U Trust. Others included OLX, Hyundai H Promise, Cars24 and Droom. Given the fact that the used car market in India was flooded with small and large players, would it be possible for Okshan to dominate the country's used car market?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2021.

Geographical setting

Region:
Asia
Country:
India

Featured company

Okshan

About

Abstract

On April 15th 2021, okshan.com (Okshan) had announced that it had entered the preowned or used car market in India with the launch of a Business-to-Business (B2B) model. As part of this venture, the company would connect the new car dealers and the used car brokers to allow purchase and sale of used cars on its platform from the assured inventory on a real-time basis. In this regard, it was worth mentioning that the pre-owned or used car market in India was worth USD27 billion in 2020, and the market was projected to register a CAGR of 15% during the forecast period 2020-25. The global Coronavirus or COVID-19 pandemic had also triggered demand in the country's used car market since people, despite their financial insecurity, were more concerned about hygiene, safety and social distancing. As highlighted by the IndianBlueBook report, one of the main reasons behind people's preference towards a pre-owned or used car over a new car was getting a good value for money. Apart from the normal cars, there was also a rise in demand for luxury cars in India's used car market. There were several players in India's used car market like Maruti Suzuki India Limited's True Value, Mahindra & Mahindra Limited's Mahindra First Choice Wheels and Toyota's U Trust. Others included OLX, Hyundai H Promise, Cars24 and Droom. Given the fact that the used car market in India was flooded with small and large players, would it be possible for Okshan to dominate the country's used car market?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2021.

Geographical setting

Region:
Asia
Country:
India

Featured company

Okshan

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