Gurgaon, May 03, 2018: Droom, India’s largest and pioneering online automobile transactional marketplace, recently released its Automobile Industry research and Trends Report. The report gives a detailed view of the trends, behaviors, and brands dominating the entire transactional segment on Droom’s online platform. These quarterly reports from ‘India’s Most Trusted Motorplace’ are one of the most preferred sources of information and statistics for industry stakeholders to gauge future market behavior.
Four-wheelers dominated online sales for Droom, accounting for a massive 65.5% of total sales. Scooter and bikes together comprised 27.7% of total sales, while supercars and superbikes catered to a niche segment and accounted for 6.4 % of total transactions. Maruti Suzuki Swift, Swift Dzire, and Toyota Innova emerged as the most preferred cars, while the top honors went to Bajaj Pulsar, Honda CB Shine, and Royal Enfield among bikes. Harley Davidson Street 750 and Hyosung Aquila Pro GV650 were the most popular superbikes, while BMW 5 Series and Mercedes-Benz E-Class ruled the imagination of supercar lovers, just as they rule the streets.
Indigenous manufacturers enjoyed a lot of support from Droom customers, with 42% preferring to opt for vehicles from Indian brands. Maruti Suzuki, Hero, Bajaj, and Mahindra were the most popular Indian brands, while Toyota and Hyundai were the most trusted foreign automobile manufacturers. Average selling price for four-wheeler was INR 5.78Lacs for bike it was INR 45.8k, for scooter it was INR 39.5k and for luxury car it was INR 29 Lacs.
The year of manufacture plays a crucial role in any pre-owned car purchase. Cars manufactured in 2010-16 were extremely popular with buyers, accounting for 83% of the overall sales. The average age of ownership for cars sold on the platform was 69 months, while, for bikes and scooters, it was 56 months and 38 months respectively. Petrol vehicles were preferred by 56% of buyers, which might be a reflection of the increasing restrictions against diesel automobiles. Another interesting trend highlighted by the report was the growing awareness around the need for verification and inspection of vehicles, with a growing number of customers demanding Auto Inspection reports before making their purchases.
The industry trends are collated from 15k+ transactions worth nearly 1kcrore, which took place on Droom’s platform between Jan 2018 and March 2018.
Commenting on the Report, Sandeep Aggarwal, Founder and CEO, Droom, said, “The year 2018 has started on a high note at Droom. The online market for pre-owned automobiles has been on an upward growth trajectory and Droom’s dominating market leadership has been helping online adoption of this category. While Delhi, Bangalore, Hyderabad, and Mumbai remained the top 4 cities generating the highest customer engagement, emerging markets such as Faridabad, Kaithal, Surat, and Ajmer also showed promising potential for the growth of online automobile sales.”
About Droom
Droom is India’s first and only online marketplace for buying and selling new and used automobiles. At over 65% of the automobile transactions market share online, Droom is the largest auto portal in India. Droom is not only the largest online automobile platform in India, but also the 3rd or 4th largest E-commerce company in India in terms of GMV. The automobile platform is category, seller, price, condition, and geography agnostic.
Droom platform has four marketplace formats i.e. B2C, C2C, C2B and B2B, and three pricing formats - Fixed Price, Best Offer and Auction. The platform offers wide range of categories from bicycle to plane and all automobile services such as warranty, RSA, insurance and auto loan. Droom uses data science to build trust at scale with a US Patent technology called Full Circle Trust Score. Droom has also built the de-facto pricing standard for used vehicles in India – OBV, which has a US patent. Droom has built the entire ecosystem for India so that the transaction for used automobiles can take place with least degree of information asymmetry and morale hazard.
It has built tech and data science heavy tools to create the entire ecosystem around used automobiles, including OBV (pricing engine), Eco (121 points vehicle inspection), History (200 mil vehicle history records), Discovery (dozens of pre-buying tools) and Credit (India’s first and only marketplace for used vehicles loans).
Droom is currently doing $647 Mil+ in annualized GMV growing at the rate of 220% Y/Y, 235K+ auto dealers (largest auto dealer platform in India), presence in 500+ cities across India (largest hyper local marketplace), 31.2 Mil+ monthly visitors, nearly 7.5 Mil+ app downloads and 5.5 Mil+ Facebook community.
Droom has the best unit economics as compared to any other E-commerce platform in India. The company spends less than 5% of GMV to run marketing and the entire cost of the company is less than 4% of GMV in terms of the net burn. Droom is the only E-commerce platform which has successfully built the cost advantage and sophistication of the tech platforms with the strong data science layer, nobody else has been able to do it in India.
Droom is founded by Sandeep Aggarwal, who previously founded ShopClues at his house in California in Oct 2010, which became 5th Unicorn in India by January 2016. Droom is a Singapore Holding Company with its subsidiary in India and United States. Droom has so far raised close to $65 million dollars in five rounds of funding. Droom is headquartered in Gurugram, India with a team size of 270+.
![[clap]](https://www.theautomotiveindia.com/forums/images/smilies/Clap.gif "Clap [clap]")