In 2024, for the first time, more used cars were sold in India than new cars. This happened mainly because more people started using online platforms to buy and sell cars.
India’s car market is going through significant changes because of digital technology, and Southeast Asia should pay attention. In 2024, for the first time more used cars were sold in India than new ones—5.41 million used vehicles compared to 4.16 million new cars. This isn’t just a one-time event.
It shows a significant shift happening driven by new technology changing customer habits and growing trust in online platforms.
The main reason for this significant change is that more people are now using online platforms. These platforms have turned the car market—which used to be scattered and mostly offline—into a fast-growing and connected digital system.
These online platforms do more than show car listings. They give transparent pricing, check vehicle history, home delivery, and easy loan options—all through a few taps on a smartphone. As more people in India use the internet and smartphones buying cars online is quickly becoming the new normal.
But it’s not just about making things easier. In India, trust has become the most essential part of buying cars online. These platforms are meeting the growing need for affordable and dependable vehicles by making the buying process straightforward, especially for first-time buyers. With the economy being uncertain, more people are choosing used cars because they cost less and because they trust the digital tools that check the car’s condition and history.
Southeast Asia (SEA) is also going through a significant digital change, just like India. Indian companies are leading the way by sharing their successful ideas with the region. One good example is CarDekho SEA, which is the Southeast Asian branch of India’s CarDekho Group.
CarDekho SEA, based in Singapore, has quickly expanded and now operates in six countries: Indonesia, the Philippines, Singapore, Malaysia, Thailand, and Vietnam.
Since it started in 2020, CarDekho SEA has made over 200,000 loan payments and has reached more than US$1 billion in total sales value (GMV). With support from investors like Navis Capital Partners and Dragon Fund the company recently raised US$60 million, bringing its total funding to over US$100 million.
CarDekho SEA uses an innovative, low-cost business model and strong technology for handling loans, which fits well with the needs of Southeast Asian markets. The company works with over 50 finance partners and 20,000 dealers and agents. In just three years, it has grown its sales value 50 times. Indonesia alone now has a 3% share of the used car loan market.
The success of CarDekho SEA comes from adapting to local needs and being innovative. Its brands—OTO in Indonesia and Carmudi and Zigwheels in the Philippines—offer services like car loans, refinancing and funding for car dealers. The company plans to expand its services by adding things like car insurance extended warranties and electric vehicle (EV) financing.
CarDekho SEA uses AI and machine learning to reduce fraud and credit risk. Their systems provide data-driven insights to help financial partners make better decisions.
Looking ahead, one of CarDekho SEA’s main goals is to strengthen its B2B2C model. This means offering funding to car dealers and expanding its network of distributors. The goal is to create the same level of digital trust and convenience for customers that is common in India’s car sales market.
Digital trust is non-negotiable.
Transparent pricing and verified listings are key to gaining customers’ trust.
Fintech integration is critical.
By offering both car listings and financing options, the platform turns people who are just browsing into actual buyers.
Partnerships drive scale
Partnerships with financiers and dealers build an ecosystem that helps everyone involved.
Technology reduces friction
AI and automation make the loan process smoother and help lower risk.
Southeast Asia’s population and increasing use of digital technology are similar to India’s growth. With the right platforms and policies, the region could see a similar rise in online car sales, led by companies like CarDekho SEA.
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