A

PROJECT REPORT
ON

CONSUMER PERCEPTION ON USAGE OF CARDEKHO VERSUS OLX FOR

PURCHASE OF USED CARS IN INDIA

Submitted in partial fulfilment of the requirements for the award of the degree
of

Bachelor of Business Administration (BBA)

To
GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI

Guide: Submitted by:

MS PARUL AHUJA SHREYANS JAIN
Roll no: 36424401720

Institute of Innovation in Technology and Management, New Delhi –

110058
Batch (2020 - 2023)

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 CERTIFICATE

I, SHREYANS JAIN , Roll No. 36424401720 certify that the Project Report entitled
“CONSUMER PERCEPTION ON USAGE OF CAR DEKHO VERSUS OLX FOR
PURCHASE OF USED CARS IN INDIA” is an authentic work carried out by me at
Institute of Innovation in Technology and Management. The matter embodied in this project
work has not been submitted earlier for the award of any degree or diploma to the best of my
knowledge and belief.

Signature of the Student

Date:

Certified that the Project Report entitled “CONSUMER PERCEPTION ON USAGE OF

CARDEKHO VERSUS OLX FOR PURCHASE OF USED CARS IN INDIA” done by
SHREYANS JAIN Roll No. 36424401720 is completed under my guidance and
supervision.

Signature of the Guide

Name of the Guide:

Designation:
Date:

Countersigned

2
 (Director/Project Coordinator)
DECLARATION

I hereby declare that the following documented project titled “CONSUMER PERCEPTION
ON USAGE OF CARDEKHO VERSUS OLX FOR PURCHASE OF USED CARS IN
INDIA” is an original and authentic work done by me at Institute of Innovation in
Technology and Management.

I hereby certify that all the endeavour put in the fulfilment of the project is genuine and
original to the best of my knowledge and I have not submitted it earlier elsewhere.

Name of the Student: Shreyans Jain

Enrolment No: 36424401720
Course: Bachelors of Business Administration

3
Sem/Shift: 6th Sem/2nd Shift

ACKNOWLEDGEMENT

Firstly, I would like to express my sincere gratitude towards Institute of Innovation in

Technology and Management for giving the opportunity to be the part of the professional
world and chance for the personal and professional development.

Lastly, I would also place my sincere gratitude towards MS PARUL AHUJA, my project
guide from Institute of Innovation in Technology and Management for supervising and
guiding me to complete my project report.

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 CONTENTS

S.N TOPIC PAGE NO

O
1. Certificate

2. Acknowledgement

3. Chapter-1 Introduction

4. Chapter-2 Research Methodology

5. Chapter-3 Data Presentation & Analysis

6. Chapter-4 Summary and conclusions

7. References/Bibliography

8. Appendices

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CHAPTER -1

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 INTRODUCTION

The used car market in India has witnessed significant growth in recent years. With a large
population and increasing affordability, more consumers are opting for used cars as a cost-
effective alternative to buying new vehicles. In this context, online platforms have emerged
as popular channels for buying and selling used cars, offering convenience, a wide variety of
options, and transparency in the transaction process.

Two prominent online platforms in India for purchasing used cars are CarDekho and OLX.
CarDekho is a dedicated automotive platform that provides comprehensive information,
listings, and services related to buying and selling both new and used cars. On the other hand,
OLX is a general online classifieds platform where users can find a wide range of products
and services, including used cars.

India’s first organised dealer for used cars, which was started by India’s largest automaker
Maruti in 2001. The used car market segment has witnessed a huge jump in the quality
standards for buying and selling of used cars (it is the responsibility of the dealers to maintain
quality and transparency and there is a little chance of misappropriation at either buyer or
seller end) with the emergence of organised dealers, which in turn drove the demand for used
cars. Some major organised dealers are Maruti True Value, Mahindra First choice Wheels,
Ford Certified Pre-owned, Toyota U Trust, A Tata Motors Assured, Chevrolet Certified,
Honda Certified Pre-owned Vehicles, BMW Premium Selection, Audi Approved Plus,
Mercedes-Benz Certified, etc.

Online players: e-commerce is growing rapidly across industries and nations, especially in

developing nations such as India. The rising penetration of online platforms in the used car
segment enable dealers to boost their reach for a larger audience. Cars24.com, Droom
Technology, Carnation Auto, Cardekho.com, Carwale.com, Cartrade.com, Olx are some
major players in the used cars e-commerce segment Around 60% of the people, who
purchase used cars are first-time buyers. Thus, used cars have helped in extending the
affordability to more people. There are multiple trends which have led to the evolution and
growth of used car segment in India.

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In the traditional offline medium, the supply side of used cars was mismanaged. The seller
had to physically reach out to the prospective buyers and talk to a lot of people to get their
views on a car and the price, which is time-consuming. However, the online platforms like
cars24.com organised the supply side of the used cars in the market. In this model the seller
approaches a physical store of Cars24 and a car gets inspected for the engine, suspension,
brakes, transmission, electrical, A/C, exterior, interior, tyres, accessories, etc. and on a real-
time basis, the specs are uploaded along with the pictures on the proprietary online platform.
There are tens of thousands of buyers (used car showrooms, corporates, logistic firms, cab
aggregators, etc.) logged into the system, who can submit their bids simultaneously. These
bids are collated and presented to the seller, who has a choice to accept the maximum bet and
sell the car or leave the deal altogether. This reduces the transaction time of a seller to a few
hours from weeks earlier, while also help a buyer in terms of saving the time and energy on
the initial round of checks. Thus, the platform acts as a liaison between a seller and a buyer
and keeps a typical margin of 2-4% per transaction. 

A car has evolved from being a luxury to a necessity in India for the average middle-class
families. There are a plenty of options available for consumers to choose from depending
upon their budget. India currently stands as the 4th largest automobile market in the world
with a large consumer base and rising urbanisation. However, there is a large section of the
population, which cannot afford a car. The taxation in the country continues to be high,
making it one of the most expensive markets in the world

Understanding consumer perception and preferences regarding these platforms is crucial for
both consumers and the companies involved. This study aims to explore and analyze the
consumer perception of CarDekho and OLX for the purchase of used cars in India. By
examining the advantages, disadvantages, user experiences, and perceived credibility of these
platforms, valuable insights can be gained to improve the services and cater to the evolving
needs of consumers in the used car market.

Government regulations: the economic slowdown due to the 2016 demonetization by the

Indian government has started to wane off and the industry has picked up the pace in the last
two years. Additionally, after the implementation of the GST (goods and service tax), the cost
burden for used car dealers had increased considerably. However, there has been
rationalization in the GST rates in recent times (from 28% to 12% or 18% depending upon

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size, and removal of cess [that varied from 1 to 15%]). This has provided the required relief
to the sector and paved the way for its long-term growth.

This study focuses specifically on consumer perceptions of CarDekho and OLX for the
purchase of used cars in India. It involves gathering data from consumers who have used
either or both platforms for buying used cars. The study will primarily rely on survey
responses and user reviews to gain insights into consumer perception.

OBJECTIVES OF THE STUDY

The primary objective of this study is to analyze and compare the consumer perception of
CarDekho and OLX for the purchase of used cars in India. The specific objectives include:

1. Assessing the perceived advantages and disadvantages of using CarDekho for buying
used cars.
2. Evaluating the perceived advantages and disadvantages of using OLX for buying used
cars.
3. Examining user reviews, ratings, and experiences related to CarDekho and OLX.
4. Comparing the features, services, and user interfaces of CarDekho and OLX.
5. Identifying factors that influence consumer preferences and decision-making in
choosing between CarDekho and OLX.
6. Investigating the factors influencing trust and credibility of CarDekho and OLX
among consumers.

REVIEW OF LITERATURE

Gaur and Gupta (2020) explored the factors influencing consumer trust in online platforms.
The study highlighted the significance of website usability, information accuracy, seller
reputation, customer reviews, and data security as key determinants of consumer trust and
perception.

Saha and Paul (2019) compared different online used car platforms, including CarDekho and
OLX, based on user reviews and ratings. The study found that users appreciated platforms
that provided accurate listings, reliable customer support, transparent transaction processes,
and a user-friendly interface.
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Kumar and Verma (2019) found that consumers consider factors such as price, brand
reputation, vehicle condition, mileage, features, and after-sales service while making their
purchase decisions. The study also highlighted the importance of trust and credibility in the
selection process. Consumers engage in information search, compare multiple options, and
seek advice from friends, family, and online reviews before finalizing their decision to
purchase a used car.

Research Methodology

The data are collected by direct survey through questionnaires. Structured non-disguised
questionnaire has been used for this project. And the secondary data is collected for knowing
the companies involved in second-hand selling. Research instrument used for data collecting
is questionnaire. The questionnaire is prepared in a well-structured and non-disguised form so
that it is easily understandable and answerable by everyone

Primary Data -The primary data has been collected through semi-structured questionnaire
In the study of history as an academic discipline a primary source is an artifact, a document
A recording, or other source of information that was created at the time of study.

Day to day desk job

Questionnaire
Discussions

Secondary Data The secondary data has been collected from various auto magazines,
journals, newspapers and online information related to the pre-owned car Market.

Sampling Size-50

Sampling Method – Random Method Statistical Tool The data has been analyzed using
SPSS for statistical analysis and testing of hypothesis. Percentage method and T- Test has
been used for analysis the data.

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SAMPLE SIZE: The questionnaires were filled mostly by the students. The total sample size
is 50, from which 20.67% of the respondents were of 18-22 age groups, 72.67% were from
23-27 and 6.67% were of more than the age of 27. In regards to income students generally
have no income or very less. Most of the respondents were male. The sample size taken for
this project is 50

Methodology used for Data Analysis:

1. Quantitative Data Analysis:

Descriptive Statistics: Calculate and analyze descriptive statistics such as frequencies,

percentages, means, and standard deviations to summarize and describe the survey responses.

Inferential Statistics: Utilize inferential statistical techniques such as chi-square tests, t-tests,
or analysis of variance (ANOVA) to examine relationships, differences, or associations
between variables of interest.

Cross-tabulations: Conduct cross-tabulations to identify any significant relationships or

patterns between variables such as demographics and consumer perceptions or preferences.

Regression Analysis: Employ regression analysis to explore the impact of independent

variables (e.g., platform features, trust factors) on dependent variables (e.g., consumer
satisfaction, preference).

2. Qualitative Data Analysis:

Thematic Analysis: Apply thematic analysis to identify recurring themes, patterns, and
insights from interview transcripts, focus group discussions, and qualitative responses from
surveys. This involves systematically coding the data, grouping related codes into themes,
and interpreting the underlying meanings.

Content Analysis: Use content analysis to analyze and categorize the content of online
reviews and ratings, identifying common sentiments, concerns, or positive aspects related to
CarDekho and OLX.

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Interpretation: Interpret the qualitative data in conjunction with the quantitative findings to
gain a comprehensive understanding of consumer perception, allowing for triangulation of
results.

3. Integration of Findings:

Merge the findings from both quantitative and qualitative analyses to provide a holistic
understanding of consumer perception of CarDekho and OLX. Look for consistencies or
discrepancies between the two types of data and explore how they complement each other.

LIMITATIONS OF THE STUDY

Sample Size: The study may have a 50 sample size, which could impact the generalizability
of the findings. A smaller sample may not fully represent the diverse population of used car
buyers in India, and the results may not be applicable to the entire population.

Geographic Limitation: The study may focus on a specific region or city within India, which
could limit the generalizability of the findings to the entire country. Consumer perceptions
and preferences may vary across different regions, and the study may not capture this
regional diversity.

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 CHAPTER-2
Profile of the Organization

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Profile of the Organization
CarDekho:
CarDekho is an Indian automotive technology company that operates as an online
marketplace for buying and selling new and used cars. It was founded in 2008 by Amit Jain
and Anurag Jain, with its headquarters in Jaipur, Rajasthan, India.

CarDekho.com is India's leading car search venture that helps users buy cars that are right for
them. Its website and app carry rich automotive content such as expert reviews, detailed specs
and prices, comparisons as well as videos and pictures of all car brands and models available
in India. The company has tie-ups with many auto manufacturers, more than 4000 car dealers
and numerous financial institutions to facilitate the purchase of vehicles.

CarDekho.com has launched many innovative features to ensure that users get an immersive
experience of the car model before visiting a dealer showroom. These include a feel The Car
tool that gives 360-degree interior/exterior views with sounds of the car and explanations of
features with videos; search and comparison by make, model, price, features; and live offers
and promotions in all cities. The platform also has used car classifieds wherein users can
upload their cars for sale, and find used cars for buying from individuals and used car dealers.

History and Background

Car Dekho Established in 2008 by two brothers Amit and Anurag Jain in
Jaipur, CarDekho is one of India's most sought-after platforms in the auto sect They saw an
opportunity to create an online platform for buying cars, as there were no major players in the
market at that time. They started with a team of just four people, and today CarDekho has a
team of over 1000 people

The company started out by selling used cars, but they quickly expanded into new cars as
well. CarDekho was one of the first companies to offer an online platform for buying new
cars. They have a very user-friendly website and mobile app, which makes it easy for users to
research and buy cars.

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Products and Services
CarDekho.com is India's leading car search venture that helps users buy cars that are right for
them. Its website and app carry rich automotive content such as expert reviews, detailed specs
and prices, comparisons as well as videos and pictures of all car brands and models available
in India.

Structure of the company

CarDekho operates with a hierarchical organizational structure. It comprises various
departments such as Sales, Marketing, Product Development, Operations, and Technology.
The company follows a customer-centric approach and emphasizes cross-functional
collaboration to deliver seamless user experiences.

Marketing Strategies
CarDekho has employed various marketing strategies to establish its brand presence and
attract users. It has leveraged digital marketing channels, partnerships with automotive
manufacturers and dealers, and strategic advertising campaigns to reach its target audience.

Financial Performance
CarDekho, India's leading auto-tech group, announced results for the financial year 2021-
2022. The group registered an impressive 81 per cent growth in consolidated revenue from
operations, increasing to INR 1,598 crore in FY22 from INR 884 crore in 2021.

SWOT Analysis
Strengths:
Established brand presence in the Indian automotive industry.
Extensive database of new and used cars, providing a wide range of options for users.
Technologically advanced platform offering various user-friendly features.
Strong network and partnerships with dealers, manufacturers, and financial institutions.
Weaknesses:
Reliance on the digital platform, which may limit reach to certain segments of the population.
Competition from other online automotive marketplaces and classified websites.
Potential challenges in ensuring accurate and updated information on vehicle listings.

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Opportunities:
Growing demand for online car buying and selling platforms in India.
Expansion into related segments such as spare parts, accessories, and car services.
Increased adoption of mobile devices and digital transactions in the automotive industry.
Threats:
Intense competition from established players and new entrants in the market.
Regulatory changes or government policies affecting the automotive industry.
Economic factors such as fluctuations in disposable income and purchasing power.

Profile of the organization

OLX
OLX is a global online classifieds platform that enables users to buy and sell a wide range of
products. It was founded in 2006 by Fabrice Grinda and Alec Oxenford and is headquartered
in Amsterdam, Netherlands. OLX operates in multiple countries, including India, where it has
gained significant popularity as a platform for buying and selling used cars.

Olx India Private Limited is an unlisted private company incorporated on 22 May, 2009. It is
classified as a private limited company and is located in Gurgaon, Haryana. Its authorized
share capital is INR 3.50 cr and the total paid-up capital is INR 3.13 cr.

History and Background

OLX initially started as a general classifieds platform but has since expanded to cover a wide
range of categories, including automobiles, real estate, jobs, and electronics. It has grown to
become one of the largest online classifieds platforms globally, connecting millions of users
and facilitating countless transactions.

Products and Services:

OLX offers a diverse range of products and services through its online platform, including:

1. Used Cars: OLX provides a dedicated category for listing and searching used cars.
Users can browse through various car listings, connect with sellers, negotiate prices,
and arrange for inspections and test drives.

2. Other Categories: In addition to used cars, OLX facilitates transactions across

numerous categories, such as real estate, jobs, mobile phones, electronics, household

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 items, and services. Users can list their items for sale, browse available listings, and
communicate with potential buyers or sellers.

Marketing Strategies
OLX employs diverse marketing strategies to promote its platform and attract users. This
includes digital advertising, strategic partnerships, localized marketing campaigns, and
leveraging user-generated content. The company focuses on building a strong user
community and establishing trust and credibility in the online classifieds space.

Financial Performance
While specific financial performance data may vary, OLX has demonstrated strong revenue
growth and profitability. It has attracted substantial investments from notable investors,
highlighting its financial strength and potential for expansion.

SWOT Analysis

Strengths:

Global presence and brand recognition.

User-friendly platform with a wide range of categories and listings.
Large user base and active community engagement.
Established network effects, where increased user activity attracts more buyers and sellers.
Weaknesses:
Competition from other online classifieds platforms and e-commerce marketplaces.
Concerns related to trust, safety, and security in online transactions.
Ensuring the accuracy and quality of listings and user experiences.
Opportunities:
Growing market for online classifieds and e-commerce globally.
Expansion into new geographical markets and product/service categories.
Utilizing mobile technology and leveraging the increasing smartphone penetration for
enhanced user engagement.
Threats:
Intense competition from local and international players.
Evolving regulatory landscape and compliance challenges.
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 CHAPTER-3
Analysis & Interpretation of Data

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Analysis & Interpretation of Data
Q1. Most Common Sites for purchase of used cars

9%

CAR DEKHO
27% SPINNY
55% OLX
CARS 24

9%

INTERPRETATIONS
Out of 50 respondents, most of the respondents have heard about OLX and car dekho
because these sites make advertisement to create awareness.

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Q2. Prefer to buy used products

No of respondents
Yes 35
No 15

30%
YES
NO

70%

INTERPRETATION:
Only 70% respondents have responded to buy used products in future, while 30% have
preferred not to buy used products because they are more quality conscious

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Q3 Ways of knowing these sites for used car purchase
No of
respondents
TV Advertisement 136
Word of mouth 30
Ads in newspaper/magazines 36
Social media advertisement 41

17%

TV ADS
15% WORD OF MOUTH
56% ADS IN NEWSPAPER
SOCIAL MEDIA

12%

INTERPRETATION:

Advertisement through television creates more awareness as compared to other media.

However other media type has also their significance. Products available on these sites

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Q4. Benefits would you seek from the used products
No of
respondents
Durable 15
Lower price 23
Brand 7
Easily accessible 5

10%
30%
14%
Durable
Lower price
Brand
Easily accessible

46%

INTERPRETATION:
From used products people seek the benefit most is lower price of the product. Durability is
also the benefit people seek from the used products which they are going to buy.

Q5. Reason to buy used products

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 Reasons No of respondents
To help the environment 11
To save money 20
Not available in market 14
Other reason 5

Column1

10% Help environment

22%
save money
nat available
28% other

40%

INTERPRETATION:
Most of the respondents have preferred to buy used products only to save money. Helping the
environment and buying the product which are not available in the stores are also the reason
to buy used products.

Q6 Drawbacks of the used products

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 No of respondents
Low quality 18
Non- realiable 10
Non- durable 14
High price 8

16%

36% Low quality

Non-realible
Non-durable
28% High price

20%

INTERPRETATION:
In terms of drawback of the used products, most of the people were agreed that the used
products have low quality and are not reliable.

Q7. Which type of car are you going to buy ?

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 No of respondents
Suv 30
Hatchback 12
Sedan 8

16%

SUV
HATCHBACK
SEDAN
24%
60%

INTERPRETATION:
In preference of cars now a days buyers are attracted towards suv cars more than a sedan or
hatchback

Q8. Factors considered in buying a car

No of respondents

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 Budget 30
Mileage 9
Personal owned 7
Company owned 4

8%
14%
Budget
Mileage
Personal owned
18% 60% Company owned

Interpretation:
As the Indian customers are more concerned about the company of the car the budget and
mileage are gain important

Q9. Do you own a car

No of respondents
Yes 16
No 34

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 Yes
No
44%
56%

Interpretation:
44% of the respondents have their own car but 56% of the respondents don’t have their own
car

Q10. Which

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 Chapter 4
Summary & Conclusions

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