Smaller and medium sized companies businesses has been pushing these used cars sales for a long time and Cars24 has entered the market with the aim of changing that. Gajendra Jangid, the Chief Marketing Officer and Co-Founder, expects the company to double its current unit sales level.
Currently the country sells around four million used vehicles every year. The market is expected to move away from new cars and toward both motorcycles and used vehicles.
Cars24 expects to sell around 18,000 units during December which is double the 9,000 units the company sold during January of 2019.
The company also recently raised around $100 million that was led primarily by Sequoia Capital and has 170 dealerships currently under direct management. Cars24 intends to begin rolling a franchise system in regional cities.
Cars24 recently was able to increase its sales through a consumer-focused business model. Normally consumers would need to visit a nearby dealership in order to sell off their cars. However consumers without easy access to these dealerships wouldn't receive worthwhile offers for their vehicles.
To help solve this problem, Cars24 created an online auction app to help consumers compare prices for the vehicles they were buying or selling.
"This is like an e-commerce ecosystem. Cars24 is an Amazon for used cars," Jangid told the Nikkei Asian Review.
The company also installed a quick payment system. Through partnerships with several banks, Cars24 can allow instant payments after a consumer once a buyer agreement has been signed.
Cars24 isn't alone though. Several companies are shifting toward a similar business model including several car manufacturers. OLX Group is launching its OLX Cash My Car within India and CarDekho is hoping to increase sales by selling both new and used vehicles.
Maruti Suzuki India, an Indian-based unit of Suzuki Motors, launched its own used vehicle dealer network called True Value in 2017 to begin selling its own used cars.
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