Market Trends of Italy Used Car Industry
This section covers the major market trends shaping the Italy Used Car Market according to our research experts:
Strengthening of online Infrastructure Likely to Have Positive Impact on the Market
With growing smartphone and internet penetration across the country, the used car market is getting more organized, and with the growing proliferation of the internet and smartphones used car retailers are focusing on using digitalization to make their market offerings attractive. For instance, In 2021, the number of internet users is around 54% of the country's population. It will go more than 70% of the Italian population will use a smartphone by 2025.
Facilities such as an enormous number of photos and videos on the online platform and easy online instant finance service are expected to attract more customers to buying used cars. Further, the presence of online used car platforms in the country and their active engagement strategies to drive demand in the market. Some of the major companies in Italy's online used car market include True Car, Autoscout24, Bakeca.it, Alvolante.it, Autorola Marketplace, Cargurus, and others.
Several players across the country are offering end-to-end transactions, doorstep delivery, digitalized recommendations on the basis of driving behavior and lifestyle of the customer, and digitalized test drives are attracting consumers toward the used car. For instance, In January 2022, Cazoo announced its plans of expansion into Europe by snapping up Italian digital car retailer and subscription platform Brumbrum.The online used car retailer said it would be paying EUR 80 million for it using cash and Cazoo shares, as part of deal.
Such developments and active instances with respect to used car dealers and operators, especially online players, coupled with growing digitalization are anticipated to poise notable demand in the market.
Rising Trend of Digitalization to Enhance the Growth of Market
Rapid digitization across the used car industry is expected to have a profound impact on sales of used cars across the country. Rising integration of advanced digital technologies in the buying process coupled with growing investments in a variety of consumer-focused digital technologies such as virtual reality, technologies focused on increasing user engagement on the shop floor, etc. expected to enhance demand in the market during the forecast period.
Several Startups are introducing digital used car business models such as Online car retailers, Aggregators, Big boy arena, and many other platforms which allow the user to buy a used car from a comprehensive product portfolio across these platforms. Major aggregators use online platforms to facilitate wholesalers, and dealers to list their offerings in one place. Notable used car platforms such as Auto1 group are entering partnerships, etc. to gain a competitive edge in the market. For instance,
- In June 2021, Auto1 has entered the Italian market through its consumer-focused Auto Hero product. Auto Hero is a marketplace that offers a wide selection of used cars, which can be ordered online. The purchase process begins with a virtual visit to the online showroom, where consumers can choose their used car.
Further, with the introduction of automated systems that include LCD touch screens, bar codes, and RFID in customer data, auto dealerships expected to improve their business efficiency by enhancing their customer relationship and retention levels across the country.
