India, 5th April 2023
OLX, a leading online marketplace, has released a new research report showcasing the potential of secondhand car trade in reducing carbon emissions from the transportation sector in India. The report, which is based on a Life Cycle Analysis (LCA) and primary consumer research, highlights the significant contribution of secondhand car trade to decarbonize India’s vehicle fleet and build a more sustainable economy.
According to the LCA research, on average, 86% of emissions over the lifetime of an average Indian car are emitted during use of the car and production of the fuel, in contrast to just 14% during the manufacturing and disposal of the car. Additionally, within the transport sector, 45% of emissions stem from passenger transport. Specifically in India, transport ranks third on emissions, but is growing fast given India’s relatively small fleet size per capita in a country with strong population growth.
The primary consumer research undertaken by OLX showed that 71% of interviewed people that bought a secondhand car, switched to a car with lower emissions per driven kilometer, resulting in a 14% reduction of combustion emissions per kilometer, on average. The study surveyed consumers in four metro areas of India, and the majority of users traded in vehicles with improved fuel efficiency, with 68% of respondents switching their vehicle to one with improved fuel efficiency.
Based on these insights, second hand car trade holds potential for reducing emissions through technical improvements in fuel economy, and car buyers in India are switching to more fuel-efficient vehicles through secondhand trade. The more secondhand cars circulate, the faster the carbon intensity of the fleet drops.
“OLX is working towards building a more sustainable world through trade, and this research offers a starting point that shows the potential of secondhand car trade for building a sustainable economy, “We believe that secondhand car trade can help improve a car fleet’s average fuel efficiency through the faster adoption of newer cars with high fuel economy”, said Mr. Amit Kumar, CEO, OLX.
The report demonstrates the significant potential for secondhand car trade to contribute towards a more sustainable economy in India, and highlights the importance of encouraging the adoption of more fuel-efficient vehicles to reduce carbon emissions. With this research, OLX aims to encourage greater awareness and adoption of secondhand car trade as a means of reducing emissions from the transportation sector.
About OLX India
OLX is India’s number one consumer-to-consumer marketplace for pre-owned cars and motorbikes, mobile phones, household items, jobs and real estate. In India, it already has the majority market share of the C2C online trade and is a market leader in pre-owned cars with OLX Autos.
OLX is the number #1 buying + selling mobile App in India, according to Google Play Store. OLX India has won prestigious industry awards and accolades and has been recognized by the prestigious ‘Superbrands’ in 2016.
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