By Nilesh Wadhwa, Autocar Professional
Cars 24 is eyeing a significant pie of the growing pre-owned car market with 20 car studios across 10 locations, cataloguing 400 cars a day.
Kunal Mundra, CEO, Cars India, Cars24 sees technology as the catalyst for growth in the pre-owned car segment in the current socially distanced Covid-scarred world. Speaking to Autocar Professional, the CEO lists out the investment plans in introducing better technology in vehicle inspection and assessment and how it is set to change dynamics of the business.
Is the demand-supply mismatch leading to better margins in used car sales?
We have managed to eliminate the demand supply mismatch with India’s largest assortment of over 10,000 cars available only on Cars24. Buyers are provided with a wide selection of cars so they can find the exact model in the exact condition and exact colour they want as against being forced to choose something sub-optimal.
Do you plan to bring in more technology (in vehicle assessment) and intensify your digital presence to compete with the start-ups?
Cars24 has made huge investments in cataloguing cars. Buyers can now inspect high quality, 360-degree images from the comfort of their home. As part of this investment, 20 car studios across over 10 locations in the country are operational cataloguing 400 cars a day.
What growth potential do you foresee in the organised used car business in India?
In India, car ownership stands at a meagre 3 percent. Additionally, only 15 percent of the used car buyers get financing in India compared to 75-80 percent for new cars. The traditional way of buying cars is often time-consuming, inconvenient and stressful. We understand that many people still remain wary of buying cars online, without seeing and trying it first. The Indian used auto market is a $60 billion industry that has been unusually slow to embrace e-commerce. This revolution was overdue. But now buyers looking for higher quality used cars have the option to buy from a reputable seller like us.