Cars24 Implements Plan to Change the Used-Car Market Cars24 recently launched a new app called 'Superb App' to facilitate the 360 degrees of buying or selling a car
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The automotive industry is rapidly evolving with the growing interest in electric vehicles (EVs) and changing consumer preferences. Amidst this transformation, Cars24, a leading player in the used car market in India, continues to adapt and innovate. We recently sat down with Gajendra Jangid, Co-founder and CMO of Cars24, to discuss the company's financial outlook, market trends, newly launched app, strategic focus and more.
The autotech company recently bagged INR 250 crore from its parent company, Global Car Group, however, Jangid clarified that no external funds have been raised; instead, the capital is being allocated internally from the parent entity to the Indian subsidiary. The rising average sale price (ASP) is also driving CAR24's growth. The ASP at CARS24 has risen to 5.5 lakh from 4.5 lakh last year. The price segment of INR 4 lakh to INR 8 lakh contributes to 40 per cent of the company's business, while another 40 per cent comes from cars priced above INR 8 lakh. Only 20 per cent of sales are from cars priced below INR 4 lakh.
Cars24 primarily caters to the masses, with the majority of sales stemming from mid-range car models. According to Jangid, the top-selling models include the Maruti Suzuki Swift, Hyundai i10, and Renault Kwid. These choices reflect a deliberate focus on affordability and broad market appeal, as luxury vehicles comprise less than 5 per cent of their sales.
"We are solving for the masses. We are not only for the rich. Luxury cars are just less than 10 per cent or even less than 5 per cent of total sales. What we want to solve is for the masses, not for the only small segment of customers," said Gajendra Jangid.
The demand dynamics vary significantly between different regions and cities. In Tier 2 and Tier 3 cities, models like the Maruti Suzuki Baleno, Wagon R and Swift Dzire dominate sales. Meanwhile, cities like NCR (national capital region), Bangalore, Mumbai and Pune lead in transaction volumes chronologically.
"The cars that are sold by Cars24, our financing penetration is more than 55 per cent. While the category penetration is roughly close to 20 per cent. With this Superb App, we are also launching financing to the customers that are buying cars from outside Cars24 ecosystem," he added.
Cars24 has launched a transformative app called 'Superb App'. The company has amassed a substantial database from transacting lakhs of cars, enabling them to launch an app where every aspect of car buying and selling can take place. The services include, buying, selling, financing a car to on-demand driver services, insurance, repair & maintenance, RTO assistance and more. The app even has an AI tool called 'CarPrice.AI' that tracks and analyses price trends over time. This data-driven approach provides them with real-time market insights, allowing for accurate pricing strategies and future projections.
"It's an internal database. We have transacted lakhs of cars. I know how much it was selling in 2022 and how much it will be selling in 2025 and for what price. I know how the car price is changing year on year. So I have got the real time market feed of the cars, and if I have the real time data then I can project how much it will go for in the future as well," declared Jangid.
The rise of EVs is reshaping the automotive landscape, but this shift is still budding in the used car segment. Jangid noted that while the new car market is experiencing a growing demand for EVs, the used car market has not yet caught up. "In the new car there is a shift happening in the EV sector; but in the used cars segment, that shift has not happened. It's going to happen but it will take some time because There are not many EVs on the road. The EVs phenomenon has been very recent, for the last three or four years and customers don't sell the car before they are at least five six years old. So it's very hard to predict right now," he concluded.
While discussions about a potential IPO are on the horizon, Jangid emphasised that it's premature to outline specific fund allocations for such an event. Current investments are primarily channelled towards enhancing product offerings and backend technologies to reach a wider audience without significant capital expenditure.
