CarWale aims to open 200 abSure outlets (pre-owned car outlets) in 2023 from its present 74 , Abhishek Patodia, President- Used Cars at CarWale told businessline.
CarWale operates in the pre-owned retail space under two different models, including a marketplace model and a network franchisee outlets (or abSure outelts). In both the models, CarWale does not hold any car inventory.
Under the abSure model, CarWale has set up showrooms offering money-back option, quality checks, and warranties, among other things. While the franchisee is operated and managed by the dealerships, added technology and purchase experience offerings are offered by CarWale. On average, one abSure outlet holds an inventory of about 20-25 cars and the company’s average selling price is around ₹6.5-7 lakhs.
These 74 outlets are mostly present across tier 1 and tier 2 cities. “CarWale is beginning to scale up in some of the smaller cities as well. But today, the presence is largely across tier 1 and tier 2,” Patodia added.
Further commenting on the impact of supply chain shortage easing up on the used-cars market, Patodia said, “We’ve seen that the growth and demand in the used-cars market have not really subsided in the past few months and it continues to be strong. However, I think in the coming few months, we will see some bit of price correction in the space. The prices of used cars have went up by almost 15 per cent after the pandemic as supply diminished and some bit of price correction is now expected there.”
After the pandemic, customers started preferring personal mode of transportation leading to strong growth in the used-car demand. Along with this, semiconductor shortages disrupted the new car supply which in turn impacted the supply of used-cars as well. This had led to a 10-15 per cent rise in prices of used-cars.