Cars24 is now selling new cars on its app
What's the story
Cars24, a leading name in the used car marketplace, has expanded its business model with an aggregator platform for new cars.
The move is part of a strategy to consolidate the car buying process into a single super app.
Cars24 co-founder Gajendra Jangid said technology has helped them address their customers' needs for buying and selling used cars. Now, they want to do the same for new cars too.
Customer focus
New platform caters to diverse car preferences
The newly launched 'New Cars' platform acts as an aggregator for different auto OEMs to display their car models.
It provides features like detailed video walkthroughs, on-road pricing details, test drive services, as well as financing options.
Jangid said 50% of buyers using the Cars24 platform today are also evaluating new cars. He promised to help them find their vehicle—new or pre-owned.
Expansion
Future plans and growth strategy
In August 2023, Cars24 launched a super app bringing ancillary services such as vehicle servicing, insurance payments, vehicle financing, chauffeur booking, and FASTag distribution under one roof.
This new foray into selling new cars is the latest addition to its growing bouquet of services.
Jangid stressed that while new cars may not contribute much to growth in the near term due to lower margins in this sector, their main objective for next year is to drive traffic on this platform.
Financial outlook
Cars24's revenue and market focus
Despite launching new services, Cars24's used car business remains its biggest growth driver, accounting for over 90% of its revenue.
In FY24, Cars24's revenue grew 25% to ₹6,917 crore with losses of ₹498 crore.
Going forward, the company is optimistic about future growth in the used car segment due to its bigger total addressable market and higher growth rate than new cars.