CARS24 enters multi-brand car repairs, maintenance services – Brand Wagon News

Autotech company CARS24 has forayed into the multi-brand car repair and maintenance services sector. This move follows the company’s diversification into financial services for funding used cars and expanding into Tier III cities and 43 other cities.

Gajendra Jangid, co-founder of CARS24, said the company aims to be part of the entire automotive journey for car owners, making CARS24 a go-to platform for all automotive needs. The company intends to play a role in the entire car ownership lifecycle, from buying cars to financing, and now servicing and maintenance. The NBFC, CARS24 Financial Services (CFSPL), and Fourdoor maintenance and services are critical parts of this ecosystem, Jangid said. These were pain points for customers that the company was addressing.

CARS24 is the largest player in the used car segment. Access to financing was a deterrent to the growth of used car sales as banks and NBFCs were not keen on this segment, and CARS24 was plugging this gap. They have disbursed Rs 3,500 crore for buying used cars, with the average EMI at Rs 12,000 over 60 months, and an average interest rate of 15.2%.

Zara struggles to find right fit as rival brands boom

Tata Play drops prices; rolls out Super Saver Packs

Unveiling India’s market magnetism: Why international brands flock to expand amidst rising opportunities

Myntra appoints SRK as its brand ambassador

CFSPL is taking used car financing beyond the metros and expanding into Tier 3 and 4 markets, growing faster than other markets. The company has seen a 30% year-on-year growth in markets such as Pune, where car financing was launched and is driving demand for used cars. CARS24 receives around 620 loan applications daily.

Car servicing was another pain point they were looking to solve. CARS24 already has expertise in refurbishing used cars before selling them and is now extending this capability to car owners through Fourdoor. The Indian car service and repair market is largely unorganised, with customers facing high costs at OEM workshops. After the free service period by OEMs ends, car owners seek alternative options but face challenges from a lack of genuine spare parts, non-transparent billing procedures, and delays in service delivery. CARS24 is looking to solve this problem with Fourdoor, which is currently live in Gurugram. The company plans to expand the service to other cities soon.

The company ended FY24 with a turnover of Rs 5,530 crore and is hoping to turn profitable soon, Jangid said. 

The used car market in India was valued at $ 25 billion and was slated to grow at 15% CAGR and go up to $ 100 billion by 2034. The holding period for cars in India used to be around eight years pre-Covid and it has come down to six years at present, Jangid said.

Follow us on Twitter, Instagram, LinkedIn, Facebook