Chip Crisis to Spur Demand for Used Cars, India’s Cars24 Says
Cars24 Services, India’s biggest online marketplace for used automobiles, expects global chip shortage to boost its business.
(Bloomberg) -- Cars24 Services Pvt, India’s biggest online marketplace for used automobiles, expects the global semiconductor shortage to boost its business as automakers are forced to scale back output due to a lack of chips.
“New car production will be cut dramatically and that will definitely result in high demand for used cars,” said Vikram Chopra, co-founder and chief executive officer of Cars24, which is based in Gurgaon, to the south of New Delhi. “In the next six months we are going to see a pretty big impact,” he told Bloomberg Television on Wednesday.
Indian automakers are among those cutting production. Maruti Suzuki India Ltd., the nation’s biggest carmaker, expects output to plunge 40% in September due to the supply crunch following an 8% decline in August, while Mahindra & Mahindra Ltd. last week said September output would slide 20%-25%.
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