This autotech firm, CARS24, that sells and buys used vehicles, is using technology and customer satisfaction to gain a strong market position. The firm has already attained 4% share of India’s used car market, said co-founder Gajendra Jangid. With around 6 million used cars sold every year in the country, CARS24 has crossed a turnover of $1 billion. 

The company’s CEO cited multiple growth drivers, including an increase in the price of new cars, facilitation of used car financing, technological enhancement, and standardized information about car health. “These factors give us a distinct advantage,” he said while adding that CARS24 has sold over 200,000 cars. The used car market will expand massively in India, and the company expects this market to rise from a $25-billion market to a $100-billion one in the next ten years. 

Maruti Suzuki True Value, Mahindra First Choice, and multi-brand enterprises such as Spinny and CarDekho are the major competitors in this segment. 

Apart from volume growth, the average sale price also has been on the increase. In the case of CARS24, the average sale price increased from ₹4.5 lakh last fiscal to ₹5.5 lakh this fiscal. Sales of about 40% come from cars priced between ₹4 lakh and ₹8 lakh. A similar proportion of 40% is from cars priced more than ₹8 lakh. Only about 20% come from cars priced below ₹4 lakh. 

Though the company hasn’t yet reached breakeven, Jangid said CARS24 is focused on expanding its product offerings to get into new business areas like financing, on-demand driver services, car scrapping, and sales of accessories and spare parts. 

One of the most recent features that CARS24 launched on the app is Orbit, which consists of on-demand driver services, insurance, repairs and maintenance, and RTO assistance. The company had also considered an IPO in 2022 to further augment the funding base. 

While continuing to innovate and expand, the company is well positioned to capture the increasing demand within the used car market in India. 

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