A PROJECT REPORT ON

“BUSINESS MODEL OF
CARS24 AND MARKET
PLANNING”
Submitted by:

NAME: PRATEEK SONI

STUDENT ID: 77121713335

A project report submitted in partial

Fulfillment of the requirements for the degree of

MBA from NMIMS University,

MUMBAI , INDIA.

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 STUDENT’S DECLARATION

I hereby declare that this project entitled:

“BUSINESS MODEL OF CARS24 AND MARKET

PLANNING”

This project is Submitted in prejudiced fulfillment of the requirements for the

degree of MBA from NMIMS University, India, is my self made authentic
work and not submitted for the reward for any other degree, diploma,
companionship, or any other type of related title or awards.

JAIPUR, RAJASTHAN PRATEEK SONI

13/05/2023

STUDENT ID:77121713335 Page 2

 ACKNOWLEDGEMENT

I would like to Showmy sincere gratitude to all the people who have givenme

support and assistance in developing this project into reality.

I would like to thank all the staff and management at the university for solving &

clearing all of my doubts relatedto this research & giving me direction and

guidance in order to create this project as per the pre-design format and criteria.

I would like to take this good opportunity for thanking my counselor , staff, &

professors for accompanying all of us on this overall project and for their very

precious input provided by them.

Last but not least; I would like to thanks all of my friends who helped me out in

completing this project into actuality, and also provided directions as and when

needed thanks to all & I’m glad that I have friends like youthank you so much.

STUDENT ID:77121713335 Page 3

 TABLE OF CONTENTS
PAGE
S.NO PARTICULARS NO

1
EXECUTIVE SUMMARY 5-14
2
RESEARCH METHODOLOGY 15-19
3
COMPANY PROFILE 20- 25
4
BUSINESS MODEL AND MARKET
PLANNING OF CARS24 &
QUESTIONNAIRE 26-55
5
OBJECTIVES, RECOMMENDATIONS,
LINKING OF OBJECTIVES TO
RECOMMENDATIONS,
LIMITATIONS & CONCLUSION
56-62
6
BIBLIOGRAPHY
63-64

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 EXECUTIVE SUMMARY

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 Introduction

In the current era the domestic use car sector was worth at USD 27 billion in 2020,
as it is probably thinking to sign a CAGR of 20% at the time of forcast period
(2020-2025) respectfully. Overall the Covid -19 pandemic did’nt have a specifially
negative outcome on the entire market. As a result of it more people are
considering separate mobility and increasing all the financial choices that are
induced into the overall used car markets,as in order to grow market must be setted
into an organized way. The overall sales and production of new vehicles lacking
due to the covid 19 pandemic, and all the available current options is being present
with the buyer of old or used car industry or market.

 As we know that the pre-use car sector developed in the overall country,
with the expansion of the well-managed and partially-managed sectors.
Overall used car or used car sector has exceeded the 4 million per units
grades in financial year 2018, which marks that pre-owned car market is
1.5 times bigger of overall new car sector that evolved out. As all in 1 of the

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 overall expansion factor of the industry is the re-study of the GST implied
on pre-owned cars that is from 30% to 15-20% respectively.

 As With the new invention of BS- VI class emission benchmark executed

by Government of India, new technological advancement cost of cars in
order to fulfill the benchmark will be very unproductive for the consumer.
Usually, As per the Managing Director and CEO of Mahindra First Choice
of Wheels (MFCW), the company' targeting on lowering the manufacturing
of cars run by diesel, as such as Maruti Suzuki's choice too finish the
diesel car catagory by may 2020, because its also anticipated to , extended
the total requirement for minu-t diesel cars that are used the car market,
until-unless there would be a counteraction against diesel cars that are being
developed .

 Key terms, such as, high quality trading experience, best price determination
experience, and huge expenditure cost for pre-owned cars, may hamper the
expansion of the total used car market. few of the important players ruling
the market such as OLX.com, Mahindra First Choice Wheels.com,
Cars24.com, Maruti True Value, and Hyundai, Droom etc among others.

Important Market Trends :

As channel that is organized will anticipated to file greater CAGRZ than

Organized Channel. Basically The well- developed catagory in the domestic pre-
owned car sectors is to anticipate to provide a CAGR of 30.80% at the time of
the forcasting period. the well-developed sales medium shows an important

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expansion in the previous 3-4 years. Overall This expansion is carries by higher
selling of used cars in metropolitian cities & a higher exent in internet sales
mediums, such as Car24, Carsdekho.com, and Droom , etc..

The higher number of the OEMs have been already presented in the pre-owned car
sector, & those whoso-ever have till not come in current used car markets in the
initial cycle have been also come in the market in the previous six years. As
ford , Renault also opens the pre-owned car market in 2016, while the Nissan
presented the firm in year 2017.

Important OEMs presented in India, such as Nissan, tata, Maruti Suzuki,

Mahindra, Hyundai and Toyota, Mitsubishi & good quality car developers, such as
Mercedes, BMW, Audi, and, land rover having personal running used car
business.

As most of these players has been showing an rise in overall selling since 2018
till now.

 As for suppose, Mahindra 1st Choice of Wheels captured a high sales

expansion of nearby 40% during period of 2018-2019, recorded earning of
INR 150 Crore respectively.

 Basically these companies is been sell more than 3,00,000 pre-owned cars
at the similar time & targets to rise this amount by 50 % till 2021.
Presently, MFCW has total 1,150 stores across India. By 2021, overall the
organisation has thinking to extent the stores to 1,300, from out of that only

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 11 stores may be developed only for the purpose of selling pre-owned costly
cars.

 An Indian car developing king Maruti Suzuki has also been entered in the
used cars market including their value chain. In True Value chain where the
cars go by many tests before they are finally setting up for the purpose of
sale
.
 As we know that, the internet used car sellers recorded high selling in the
period of 2017-2019. CarDekho has been a considered as a top most in the
internet used car sector, recorded a high expansion rate of about 100% in
the period of previous 3 years..

 Additionaly, buyer prefer security, full-discloser and very low or no risk at

the time of buying used cars, which, at the end, gives the well-developed
catagory an higher mark as we compared to the unorganized sector that is
there..

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 PROJECTSCOPE
Basically Scope of the project covered a brief summery of the important key marks
presented in this project so as under the study, I will be inspecting the pre owned
cars market in India & its expansion along with the upcoming future projects. As
With convergence to this, I will analyzing the business model of the cars24 &
their total market captured in the entire industry. I will also study its calculated
marketing techniques & strategies ,& will planning for the respected future. I will
also store few primary data from many audience who have been used cars24 or
planning to purchase used cars with the help of this platform.

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 Problem statement
AS it is now quite clear that Used cars market is very bigger in our country and
playing really well for past few years. We know that India is a large country &
many of us are not able to purchase new cars but also personal vehicle has been
very necessity nowadays, As in this situation, used car present into the whole
picture are become very helpful in big way. Most people are purchasing used cars
and basically when there are various trusted organizations present in this business.
Many of us whill still having fear at the time of purchasing old cars regarding the
long-lasting performance that will remain there until-unless you purchase it from a
good brand & they give you some sort of guarantee as well for trustworthiness.. as
way ahead is not so easy and all of these companies should have to make sure that
people trust company and its brand offered by companies and never –ever hesitate
while purchasing pre-owned cars.

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 Literature review
Purchasing a new car is the last point of the overall process . on an average it will
take about nearby 6 months and include many research study & tough-decision
making. As earlier ,there is a tough competition b/w buyers and suppliers basicially
played from the side of latter. Basicially The invention of the WWW has exchange
the tough competetion between supplier and buyers. purchasers can at present
effectively get the hing hand. buyers are nowadays highly knowledgeable
regarding cars, &their overall quality, remaining value, their prices implemented,
financial charges that are applied, availableness, and, more importantaly, the
exact amount of profit ratio left that the supplier gets in finishinga deal.
Vandorship has to be adapt at any cost. The most intelligence and dynamic have
able to managed to convert buyer intelligence into their productive advantage, by
paying attention on what buyer truly want to need as clearnessand respect. As we
know that theused car market has been changed in the similar way as the new
car market is been changed. probably in few countries, used car selling shows 2
or 3 times the volume of all new cars total sales, there are few research that
overall elaborate the used car market. Overall market research recognises a no of
keys and basic findings that shows the formation of the pre-owned car business.

The essentialness of the pre-owned car market is increasing on a very fast rate.
As in both countriessuch as U.S. and France, as for example, the presentusing to
new vehicle percentage (which shows the stage of current used market action)
has rises from 1999 from 2.4 to 2.6 presenting a rapid increase of pre-used
vehicle overall sales by total volume. As in addition pre- used vehicle total sales
in the U.S. presently are more than 2x as very profit giving for suppliers as
fresh vehicle sales overall. Basically, the present use of finance and insurance

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category is moreover taken as most profit providing manufacturing task of a
individual dealership, placing 11.3% profitability ratio in 2005 in the U.S.

The key term in order to expansion that should be clearness and allined dynmics
of data & info, as buyers will constantly to implied for the same technique to
analyzing and storing of data in their searching purpose for pre-used motors as
they earlier do in the new car purchasing technique. As with new car sales, the
overall terms b/w supplier and buyer will be needed to be fix on loyalty and
trustworthy relations, as well there is a very ease of buying. Such a organized
terms will be states that purchaser and sellers possessing the similardata
&information by which it will be able to determine a product’s total quality. The
use of Internet is highly running the info basis of choice of people for used
vehicle purchaser. Whereas a consumers will still be using domestic
newspapers & word-of-mouth technique when studying purchases of cars, they
are coverting to the Web in larger terms, showing the significance of having
a powerful net technique to be used for vehicle shows (J.D. Power and
Associates, 2006).as it shows .

Purchaser that are paying attention on various-channel transmission strategies are

starting to grab benefits available, with an rising number as by saying their Web
actions have tobe rises sales & enlarging their trading area.The most significantly
success techniqueis in the pre-owned car market business probably be the
building of trust-insuring capablity such as registered used vehicle
campaigns . All of These programs gives the better security against the channel
market competition and also allowing the buyers to increase margins essentially
by offering an extra source of earning for OEMs as and when needed.

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There are some off-lease cars, internet stocking and inducing a larger
professional goodwill in the minds of the buyer. Pre-used and new vehicle
selling are very much inter-related and complementary to each other; both are
the basic features of buyer excellence and satisfaction. excellence dealerships
tending to have a power-full sales in both the areas as in new and pre-used car
division. the fresh and pre- used vehicle sub-sections. Basically, An American
research shows that new vehicle selling per dealer inter-related positively with the
used vehicle overall sales, inspite the countering nature of the pre-owned car
market business. Although Management of new car inducement is very tough to
ensure high profit use businesses. As the rise in total build quality & pictures of
used cars provides popularity & pre-certified programs and rewards, late-model
of the pre-used cars are highly being an exchange for new vehicles and same .

In the end, incentives in the total new vehicle market business acting to be
loweringthe used vehicle prices as far as possible, lowering remaining values &
new produced vehicle overall sales prices & also strengthen the incentive basic
cycle. As This will placing overall target noticable for future model for used
vehicles & for highly expensive market sub-division. Due to this reference basic
study shows how significant it is to the classification of the pre-used car market
business while, analyzing the market in overall well-developed countries.
Basically, it touches on the significance of professionally used car organized
structure for the developers when they thinking that the overall control of this
rising sector will be still in the galcerie so it is called as independent merchants

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 RESEARCH
METHODOLOGY

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 Research Methodology

The basic reason of preparing this project of research is to provide information

about action. as, your research and study should focus on to developing a
thoughtand its uncovering within total body of research that is conducted.
Research should be of very good quality in order to develop overall knowledge
that is implemented exterior of the overall research criterion. Throughout, the
outcome of the studyprobably have suggestions for the policy and upcoming
project implementation as required.

Generally, the problem that sudden infestationin progress in the global health is
basically low speed translation of the research that took place into practice.
perhaps, a discontinuation takes place between those who regularly conducting

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research and study & those peoples are targetedin order to execute basic research
observation and findings. Basic downside problem is that “the building of proofs is
management institutionally with highly organized centralized techniques, whereas
basic application of that technique is highly decentralized in other case.. overall
this social distance exists as scientists are more result based to the international
peoples &audiences of the other for which they frame than to the needs of regular
practitioners, people who make policies, or the local public that exists.

Characteristics of Research
 It is basicallyhierarchy and tactical examination into a phenomenon.
 It is a highly reason -based examination targeting at explaining, translate,
and describing a phenomenon.
 It basically embraces scientific method for doing research.
 Basically it is having an goal-oriented and knowledge based theory,
applying those test that have a chance to happen to substantiate the
calculating tools and the end-outcome reached.
 It is formed upon noticeable incident or factual evidence.
 Research is administer towards findings questions and answers relevant to
the current case and also providing creative solutions to basic problems.
 It firmly focuses on the building of generalization, principles or theories&
relative techniques.
 True reason of research is not only to come directly at an result but also to
get –up the overall testing of evaluation.

Purpose of this project

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As by this study that I did, I would like to analyze about pre-used cars market in
India & its upcoming ready prospects. Here, I will evaluate the overall business
model and techniques, planning of marketing of cars24 in vast details.

Methodology used
Primary data: The Primary research is called as a research methodology taken by
various other people who do research.In order to gather data directly from source,
better than keep depending on data collection from earlier done research.
techtically, they develops the data. Primary research is basically done to
determines a particular problem, which will requires very deep analysis.

Generally, the Primary data i gathered with the unique help of 1 questionnaire
which was designed by me which contains some good questions that provides me
good comprehension regarding the peoples who purchased used cars or planning to
purchase them when-ever posible.

Secondary data: Basically overall Secondary data that I gathered is in the form
which is so -far accessible in the form of printed reports or data& info or books,
magazines etc. For example, basic report developed on buyer overall satisfaction
as told earlier , &, which is used for some type of other research & study in
upcoming future can be termed as “Secondary Data”.

Generally Secondary data is collected by me is from many newspaper, websites,

internet, journals ,media, magazines and books ,etc.

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Innovative techniques used in the study

Information shared by interior people: As My uncle is doing job in Cars24 so

he told me many of things which will be very helpful for me in order to collect data
, prepare report and finally completing my study related to my topic.

Reports of Industry Professionals: In this I have also gathered few of the reports
of industry professionals & come to know many things related to used cars market
&basic buyer’ mentality related to it.

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 COMPANY PROFILE

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company profile

Basically Cars24 was discovered in the year 2015 by Vikram Chopra, Mehul
Agrawal, as a medium to purchase and sell pre-used cars respectively.

Hence, Cars24 provides the transactional & also having an option of offl-internet
medium. aside from sell pre-use cars, the company's facilities covers all documents
-work as shifting the car in the name of the present new buyer which provides
term-to -term transactional benifits. An online auction medium provided to
businesses seeking to sell their used cars when required. As in year 2020 the
overall company has starting to offer verified pre-used cars on that the company
provides a buyback assurity on the cars that are approved by inspection.

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Generally , The company runs 202 sub-divisions that covers 80 places of India as
of 2020. Aside from its sub-sectors, the company has been with more than 15,000
channalize members that covers 220 cities of India.

As In May 2020 the company has presented Cars24 Moto in the market. Cars24
Moto is a basic facility that give permission to purchaser to sold pre-used motor-
cycles such as, mopeds, motorbikes, scooters on way towards it. It has also
presented a facility driven cars with overall analyzing & facilities at the buyers
landmark in terms of their respective branch that was established.

Funding and endorsements

Basically Cars24 raises US $ 60 million in cycle A and cycle B totally merged. In
2019, it increases more as US $ 61 million in Series C cycle of financing .
hence, Cars24 raises US $ 110 million in a final Series D cycle of financing in the
year 2020. Overall Investors in the whole company involves Sequoia merged
Capital, Shareholders of DST Global company, Kingspath , KGK and Unrestricted
and More technical outlets ,etc. Now as a division of the series D cycle of
financing, the organization getting an total financing from cricketer Mahendra
Singh Dhoni respectively, who vice-versa becoming the organization brand
ambassador of that era. Basically Cars24 increases its funding as from US $ 210
million in stage E cycle of financing in year 2020 & becoming a unique set-up
as it is worth at over a $ 1.1 billion asides from Dhoni , celebrity such as Akshay
kumar, salman khan & paresh rawal have certified the organization in overall
business ads.

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Mission
As CARS24's goal is basically to change the path pre-used cars are managed in
India. As we attempt to provide an effective, & convinient and and without hurdles
performing experience for pre-used cars whenever required.

Values
General Values and ethics of the company explains how the properly framed and
disciplined an organization is there. As the company, having their own pre-defined
stages of values that in company’s believed and bind by it.

Ownership
As companies don’t want their employees to be controlled, but they want that their
employees to take the charge . As at CARS 24 companies believed that highly
efficient working area is not explained by the directors or CEOs not by the higher
management , but it does by the how many numbers of owners are there in an
organization.

Investing in Employees and Partners

As here companies don’t want to borrow or raises its capital , but to increase their
overall audience and partners involved. As at CARS 24 companies do not thinking
of their success in the profitability or initial offerings but , in developing our staff
and peoples very –very successful in their overall life. Companies believed in
utmost “givinf a person a fish and feeding him today; that basically guides a person
to fish and feeding him for life-time.

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High Standards and High Results
Companies do not needed to be settled for minimum , hence they focusing on
getting more and more basically At CARS 24, Companies do not dwell in overall
what has been accomplished , but obsessing on doing or running it far more better.

Transcendence
At CARS 24 companies do not want excellent performances to be go without
getting any type of reward or recognition, their ambitions and pretension are quite
higher as showed at CARS 24. Companies do not want transcendence as an rigid
and vicious technique ; as there is a particular no of chances but , its or trust and
belive that higher the number of skilled peoples are there , the higher we can think
and achieved in all overall aspects as possible.

Trust
At CARS24 company can’t get profitable until –unless there is a power-full and
deeper faith is their with each and every partners. At CARS 24 companies do not
think they do each and everything at present in order to say that we are totally loyal
and faithfull, but we also having a knowledge that this is the part of basically
what we do on regular basis, and we are day by day woking harder with our
commitment of achieving our goals according to the agenda set by us in order to
make sure we are working in an effective manner.

Frugality
As at cars 24 organization do not want to begin cent types, it sounds silly but.
There is no expenditure is done when it does not bring any type of valve or adding
to core-valves. At CARS 24 its our believe that a great woking area is not that one

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including of designs , decorating items , greater parties and free of cost foods , but
it is the one which makes healthy and effective profits as and when possible it was
its first relevance as compared to others.

Long Term
As in their brain , companies are quite clear that they are performing the very
finiest work of our overall life that will be a very extended journey. Basically at
cars 24 our belive is that we will definitely achieve success not only by monthly,
quarterly, or yearly but on a long and consistence basis. And also keeping in mind
these break-through were achieved without any type of arrangements on the basis
of our long –range of plans respectively.

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 BUSINESS MODEL AND
MARKET PLANNING OF
CARS24

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 How cars24 started in india

Initially CARS24 was discovered with a viewpointin order to structured the highly
unorganized pre- used carsindustry at that time in India. Overall 30-35 lakhspre-
used cars has been sell out each & every year in our country, from that hardly 20
lakh brand new cars are being purchase by people. This apparently aim that the
overallpre-used car market is far more greater & besides a powerful buyer
requirement as the basic supply is been prohibited due to some reasons. hence dis-
similar other type market teams, we also pay attention on the overall supply rather
than on demand.Along with market-dominating perceptions, we people at
CARS24, has been regularly attempting to running the supply side along with
our overall team at the workplace. Basically all our accomplishment have
continuingly been commemorate. as both of our inventors – Vikram Chopra

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(CEO) and Mehul Agrawal (COO) have been advertised in The Hindu Business
line outlet as prominent.

The pre-use cars market is a $25-billion market in India that increases at 30

percent each & every year respectively. Throughly higher buyer requirement
pretended itself as a great chance, As key factor was lesser supply. In words of
Vikram, the greatest tasks is to link the supply to present requirement proved the
fact that overall sector in totally not organized properly.

As later on Vikram also added that presently we have many competitors such as
Droom- bindass ghoom , Quickr—as quicker , Carwale.com and Olx etc. besides,
these are the present leading generation websites available which does provides
the transaction when needed. Whereas On the other hand, we are having the info
and we rule our personal activities as we know.

Tapping The Talent

Nowadays quick access to capital is not only a particular key factor that makes
sure overall entrepreneurial successfulness. There are many start-ups & small
business which are continuing developing a new job chances but Vikram said that
contributing in our employees& team is the new criteria which make sure an
organisation’s overall success. He also further said that navigating employee
overall satisfaction is an another important key factor of being a good entrepreneur.
Vikram has also said that recruiting the skilled talent is of the utmost important
factor for an entrepreneur in order to achieve its mission. Any-person can leniently
havinga valuable idea & a continuous aim to achieve goal, although , it’s not

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only the requirement of overall capital that can get easily get success in an
organization so far as possible, the overall employee happiness must be keep in
mind as it is the greatest material in an individual extension story. While
developing a company, will also required a effective &strong team.

As Vikram &Mehul both the persons sharing the similar ideas and that’s why
they always try to took out time for their desigred teams when possible. In the
words of them ,this is the thing that a person failed to feel in their starting stage
and being ended by very expensive and immediate incident happen. Both of the
person makes sure that their overall team is creative and rather of keep paying
attention on a week day review , they should pay attention on helping the team to
do its task efficiently.

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 Story of cars24

Founders
Vikram Chopra, CEO, and Co-Founder – Basically he has a BTech and MTech
degree in Engineering at the Indian IIT, Bombay, and has done MBA in
specialization of Finance at the University of Pennsylvania, united states.
Generally he is a antecedent Co-Founder of FabFurnish & contribution Analyst of
Sequoia Capital & he was also basic Business Analyst at McKinsey & Company
Mumbai.

Mehul Agrawal, Co-Founder, and COO – He also having an MBA degree from
IIM Calcutta & has done work with BCG in past. previously Mehul begins an
online furniture company called Fab-Furnish in Maharashtra mumbai.

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Gajendra Jangid, Co-Founder and CMO – As Vikram, Gajendra too has a
BTech and MTech degree in Engineering at Indian Institute of Technology,
Bombay. previously also has as co-founder person of CARS24, Gajendra was
working with Schlumberger situated in texas .

Cars24 at presently having more than 200 branches covering total of 35 cities in
India and is being backward by a team of 750 employees may be high
respectively .

CARS24 – About and How it Works

Presently CARS24 an ISO 9001:2015 registered organization & being 1 of the

highly-increasing pre-use car company in India. As this organization is the 1st
company in this sector to make a ‘transactional led’ theory in order to sell a car
by re-solving pre-used car selling activity that results in disturbance of the
‘organized fields’. As by this way, a basic owner can conveniently sold out their
car with the proper security in just less than 3 hours & also get paid immediately.
As on the another end, CARS24 has includes many of pre-use car market
business , basically purchase all these cars via internet , basic phone auctions
from the present owners of cars all over the India.

As by creating the overall business has its own particular benifits, CARS24
presently conquered the pre-used car market which shows several types , as instant
financial services, and basic data services. Asides to trading in pre-used cars on
internet , basically CARS24 has an offline existence On types of brick & mortar

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stores combined elements , consisting of higher than 157 branches across 37 cities
in India respectively.

Initially CARS24 is disturbing the pre-own car sector in India & also admiring
the difficulties facing by pre-car owners, by giving an worlds best-class overall
buyer background that is very fast, convenient , & difficulty free in last.

As Cars24 has given an NBFC certified license from (RBI) basically for new
individual — as its Financial Services. With the help of Cars24 FS, basically
company has been providing cars loans as & when required to different buyers
and also providing finance way to partners in order to helping & expanding
their entire business. In this the buyers should be acceptable on a CR based on the
existing car value they are purchasing. For buyers the present size of loan that
should be of INR 3 Lakh – INR 3.5 Lakh respectively.

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 Business model of cars24

1. Customer to Business (C2B) Model

Generally this platform is targeted particularly on a (C2B) model. It basically
buyes cars from various users & in turn, sold them on to the different dealers. On
Contrary related to a classified platform, Cars24 provides final transactions as
required , charging a commission for each &every deal that took placed.

AS we know that CARS24 is particularly a business for the purpose of resale of

pre-used cars. This platform’s business related model is entirely based upon the
several stages of purchasing a car from present buyer on a most genuine,
convenient rate as compare to the other alternative services that are being provided
for re-selling a car in the close market Entirely This platform is primarilypaying
attention on to providing the buyers a more easier and alternative market as
companion to many other convergence of selling pre-used cars, for purpose of
helping people to make the overall process more easier and more truthful.

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As this platform provides an effective price for each &every car, irrespective of its
current condition , vehicle current age as well as the model. This also permitsthe
owners of pre-used cars can be able to sell them any time in one visit at any branch
of the platform that is there. As Cars24 allowed the users to get a rough valuation
chart , as its on base of data that is being provided of the car online on the
respected platform. Basically the car users who sold their car with the company’s
platform in order get the payment immidiately.

2. Customer to Customer (C2C) Business Model

At presently basically company has adventured to involve the C2C business
framework as well because it is required. As this diagram , for buying a car, the
buyer has to decide the car of their will from the present platform’s site or by
visiting the closest branch of that platform so as to access the car and test it
when required. The car is then shipped to the purchaser by following the payment
method in not more than an hour.

As what we discuss about this earlier, that Cars24 perform closely on its overall
selling tasks, or more prominently put, its auction into an interface, in order to
make sure that the buyers should have a excellent experience. Overall business
stages perform onto have an online auction set up system for any type of person
in the country in order take part and do a bid within an particular framework.

As Once all these bids are been placed, all the person who bids are already having
the info of the higher bidder& the bidding amount whatever that can be. As after

STUDENT ID:77121713335 Page 34

the bidding process is complete , the car is being shipped to the topbidder as soon
as possible.

& If a person think that’s all, so it requires for a beginning to reached the
changed $1 billion USD sign, we would like to add up some points to this. As
Cars24’s model does not at allbeing stop at the just bidding, besides it really
begins from there as required. As The company peform to side every stone, that
occur as a rock between a buyer’s’ purchasing and selling process as by developing
the overall transaction completed to its entire end.

As this basically means that Cars24 will picking your vehicle upside, & giving it a
quick checkup which is required, estimating a basic value for the initial bid,
initiating the bid, completing the bid, Telling about the highest bidder, & addresses

STUDENT ID:77121713335 Page 35

the vehicle to the top bidder. And it also repeat this process continue to sold over
150,000 cars annually as per reports.

Generally This, at a very high level, is how Cars24 do its work. as, it erases every
single nausea between the purchaser and the seller, & also giving a prestige
customer background, as it develop more money doing it. Now see from a closer
look as how much can cars24 can make money from the overall sales.

Revenue Sources
Basically Cars24 build money from this effective system, and it does develop a
lot of it. But as in situation you’re imagining how it is possible , there are truly
only two ways by that Cars24 builds money.

1. Commissions
We know that Cars24 can makes commission anywhere between 4-5% on each &
every transaction made on their respective platform. henceit is also a safe-side
player, that running an very-heavy models where the cars are bought first &after
that a bidding programme is been launched. Basically this is a good strategy which
reduces few of the risk that company faced at the time of buying a pre-used car,
but it will bring more customers, that’s why it will bring very high bonus
respectively.

As we also needed to pay for a few transactions payment if we want to login up

for a overall bidding campaign that is available , as per the sources.even that
money can be linked up essentially to Cars24’s various income sources available.

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2. Loans
As we already told that Cars24 providing a excellent purchasing and selling
expertise , its damn true, as the company ensures that a buyer get what he need,
alike dose’nt matters if he want some money to purchase a car from their website.
As Cars24 provides loans facility to those people that were seeking to buy a pre-
used vehicle, & it also charges stake on all that loans taken. As stake charging rates
are insist to be few of the shortest in the market place , they do added up
essentially for the business for ’ cash inflow, with high interest rates rising from
8% and more.

Funding and Investors

Generally the Sequoia Capital India is that name which provides frequently alert
messages in the discussions took place. They have been besides few of the most
favorable startups as like Khatabook.com , CRED. com and whatnot they covers.
So if they want to back Cars24, we know that company is performing right
thing.

Presently, overall the company has raises nearby $700 million USD, from the top
dominating investors like basic DST Global limited, global Car Group.com, &
KCK Global limited. As Sequoia, we were talking about in past, was also took
part in a group $50 million USD financing round, that was basically the highest
increase to the overall company at its very initial stages that were formed.

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 Cars24 marketing plan and impact of
covid
In the current scenario, overall total-dynamic needs of buyer are now more
emerging than ever seen before. In order to cater all these needs and wants, a
business must be embracing and adopting techniques that will be very helpful in
retaining the overall connection that is been developed with the buyer in time.

As basically for us , generally, the mass on TV as publishing vehicle was very

huge as the overall motiveis to covers and develop acquaintance near the ideal
explanation that Cars24 has to provide. As we know that the Indian market was
already certifying a radial shift in matters of mass consumption habits, Also, we
were already know in the cycle of rising the overall share with the help of online
medium in our basic marketing mix program. Besides , that was told to be a radial
transmission , becoming an rising cycle stage as the pandemic performed the
task of an efficient catalyst ever.

AS Being India’s no 1 online activity platform or medium for pre-owned cars, our
all efficient efforts have always being channelized in order to provide buyer with
an effective , convenient , and trustworthy relationships. Basically Cars24 has able
to channelize the way buying and selling takes place, with regard to pre-owned
vehicles, on the backside of the utmost leader tech abilities with respective person
who is selling & get the highest amount for the desired car, & purchaser has to
decide from a huge ranges of automobiles that are being available.

All of These factors has led to our wide extension in the auto-mobile industry, &
we are 100 % sure as with our regular efforts and practices , we will be survive

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this era of developing trust and loyalty, being very clear in each and every
aspect ,and also providing our respective buyers with an excellent customer service
involvement.

Major competitors of cars24

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 Impact of covid-19 on cars24 business
Basically The India’s lockdown has extended further-onin various parts of the
country, & it’s very much apt thatever after the lockdown is being extented there
will be several restrictions would be there on people gatherings, travelling,
relaxation program or somewhat that includes a larger gathering of audience
which would compromising over-all social disconnections.

All over india the lockdown has adversely putting an impact on the many
business activitiesthat would resulting in an economic slowing -down that is very
much likely to affect purchaxsing power of the buyer which would having an
effect on various businesses such as property, transportation and the automotive
overall industry, financing sectors, etc .

Whereas the basic road to do recovery is not everywhere- round the corner side, it
will be taking a some months or more before returning neutral situation. The great
news for auto-mobile sector is that the dynamic buyer choices in the post Covid
ERA are quite emerging to increase total car sales, that would be very helpful in
quick recovery time-period.

Here we at CARS24 organised a research program by using many online medium

in order to understanding the over-all consumer feelings, actionable changes &
computing out preferences to post the covid-19 pendemic lockdown that was held.

As per the research 53 % of the people are most likely to purchase a car under
the next 6 months as buyers choose personal vehicles in order to communicate
with people transport facilities like buses, trains, flight,auto rickshaws, & Pool

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taxifacilities available after the lockdown. Out of these people 25 % previously
used public means of transport & taxi services in order to travel, 50 % of them
planning to driven their personal car while 15 % are estimated to use a two
wheeler vehicle.

Asides from financial requirements, family basic requirements & the risk of being
infected has come out as the major purpose for purchasing a car by the buyers.
nearby 43 % percent of people feel they now in a need to purchase a car for the
family whereas 57 % of people may buy a car under next 6 months.

Rather than this, nearby 10 % of people are eagerly want to raise their amount for
a better and safer car with new features such as air purifier& sanitization, 41 % of
them want without contacting car buying over a customary car purchasing.

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 Cars24 market share and profitability
The Indian used car market is a major contributor to India's automotive industry,
with 42 million buyers last year.(source: Crysil).

The proportion of fresh cars to used cars has rises from 1.1.3 to 1.2.3, meaning
that for each & every 10 new cars sold, 22 used cars are already available.

Estimated pre-use car sales in 2008/09 were $3.7 million, and the expected
turnover for 2018-2019 is Rs 62 crore. The average length of time a new car is
owned has dropped from five to six years to just three years, offering many
opportunities for aspiring buyers.

The Tata Nano is a classic example of used cars becoming dominant over new cars
due to the fact that buying a used car no longer represents a social stigma.
Ambitious young buyers will opt for a used Maruti Wagon R or a used Alto over a
new Tata Nano due to their better characteristics, such as more power, space, and
higher class. CARS24 is the best place to sell an old car and buy a new one.

The trends in the used car market are similar to those in the new car market, but
buyers are more likely to try brands in the used car segment. Maruti Suzuki is the
first choice for used car buyers and holds a large share of the new car market.

Car buying and selling is largely unorganized, with only 17% of the market being
organized.

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The Indian used car market is experiencing significant growth, but with a 1:1 ratio
of new to used cars in mature markets, future growth is likely. Overall, the market
is in the right direction.

Cars24, a Gurugram-based auto market, doubled its sales in 2020, with compact
income of Rs 3,058 compared to Rs 1,688 a year earlier.

Nearby 99% of organization fund comes from the, product sales, that is
approximately double from 1,650 Cr to 2,966 Cr over the year. Our service sales
revenue increased more than 5 times from 4Cr INR to 22Cr INR in FY2020.
Additionally, the company added two more revenue streams to his 2020 fiscal
year, especially interest rates and other financial services revenue.

In addition to the revenue growth, Cars 24 has successfully reduced its net loss
ratio in 2020 by 12% from INR 325.6 to INR 284.9. Company expenses also
increased by about 1.6 times, or 66%. A disbursement of 3,350Cr was recorded in
fiscal year 2020. Interestingly, Cars24's fiscal 2020 spending is approximately
twice its fiscal 2019 earnings.

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The company spent Rs 2,865 on inventory purchases in fiscal 2020, almost double
the previous year's Rs 1,623. This was a significant increase from the previous
year.

Employee welfare expenses accounted for a further 6% of expenditure, with

expenditure of INR 217.1 in 2020. The Company has expended Rs.185 for
payment of stipend and wages and Rs.20 for employee stock option program and
employee stock acquisition plan. To these expenses are added social welfare labor
costs, administrative costs, tips and pension contributions, and other funds.

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Future plans of cars24

As The organization increases its footprint from 20 cities to 73 cities in 2018, &
increased the number of stores from 100 to 200 in 2019.

Jangid has announced that he will be more aggressive in Tier III and IV cities due
to long queues.

The company processes 15,000 vehicles and buys and sells used vehicles monthly.

Demand is high in Tier 2 and Tier 3 cities, with supply from Tier 1 cities.

The majority of cars bought on the subway end up in tier 2 and tier 3 cities.

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Cars24 is a technology-enabled platform that allows customers to purchase and
selling used cars in overall. It will sell these vehicles online to used car dealers
across India through its own online sales platform. Investors include Sequoia India,
Exor Seeds, Apporetto, Kingsway Capital and KCK.

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 Questionnaire
PRATEEK SONI
811880****

1. Choose the option that best suits your age group.

Age Group No of respondents
21-25 20
25-35 24
35-50 03
50+ 03

30

25

20

15

10

0
21-25 25-35 35-50 50+

2. Do you own a four wheeler

STUDENT ID:77121713335 Page 47

 Yes 44
No 06

50

45

40

35

30

25

20

15

10

0
Yes No

3. Have you ever bought a used car?

Yes 30
No 20

4. Have you ever used Cars24 services?

Criteria Frequency
Yes 25
No 25

STUDENT ID:77121713335 Page 48

 Frequency

Yes No

5. Do you think Cars24's service and quality of cars are good?

Criteria Frequency
Yes 42
No 08

Fr equency
45
40
35
30
25
20
15
10
5
0
Yes No

STUDENT ID:77121713335 Page 49

6. Do you think it's always risky to buy second-hand goods, even if you buy
them from a reputable source?
Criteria Frequency
Yes 30
No 20

Frequency

Yes No

7.Was the whole process smooth?

Criteria Frequency
Yes 45
No 05

STUDENT ID:77121713335 Page 50

 Frequency

Yes No

8. Do you think buying a used car is a better choice than buying a new one?

Criteria Frequency
Yes 22
No 28

STUDENT ID:77121713335 Page 51

 Frequency
30

25

20

15

10

0
Yes No

STUDENT ID:77121713335 Page 52

9. How did you hear about Cars24?

Criteria Frequency
Google 24
Online advertisements 20
Friends or relatives 05
Others 01

Fr equency
30
25
20
15
10
5
0
le t s s s
og en ve h er
o m ati Ot
G se r el
r ti r
ve so
ad nd
e ir e
l in F
On

10. Would you recommend Cars24?

STUDENT ID:77121713335 Page 53
 Criteria Frequency
Yes 41
No 09

Frequency

Yes No

STUDENT ID:77121713335 Page 54

 OBJECTIVES,
LIMITATIONS,
RECOMMENDATIONS,
LINKING OF OBJECTIVES TO
RECOMMENDATIONS&
CONCLUSION

STUDENT ID:77121713335 Page 55

 OBJECTIVES
 Research on the used car market in India and its future prospects and current
growth

 Know the impact of COVID-19 on the used car market

 Analysis of Cars24's business model and marketing plan

 Cars24's research on marketing strategy and reports, funding rounds, key

competitors, and more.

 Know Cars24's market share and profitability

 Learn about Cars24's future expansion plans

 To collect the opinions and impressions of customers who have purchased or

are considering purchasing a used car.

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 LIMITATIONS

• Most of the data is secondary data and should be assumed as is.

• The survey was completed based on responses from some of our customers, and
we consider the responses to be true.

• All data collected is secondary data that has already been researched and
published, and therefore had to be relied upon and included in the report
accordingly.

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 Recommendation

 Cars24 is doing very well on the used market and has a huge market share, but
regardless of the type of customer, the company should treat them the way they
treat them, and everyone else after that. As a result, there are still many casual
customers who are dissatisfied with the experience. Be equally satisfied with
your dealings with the company.

 The company must also collect feedback from the customer on a regular basis
after the transaction is completed, eg 1-2 months later, collect feedback on the
vehicle and provide assistance as needed.

 The company needs to open more stores in other cities in India to serve more
customers and generate higher sales and profits.

 Currently the company has more than his 80% market share in this used car
market and needs to work hard to maintain this market share through good
branding and advertising as well as best customer service .


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 Linking of objectives to
recommendations

 One of the objectives of this project is to study the used car market in India
with particular reference to Cars24. Cars24 is doing well in this market and I
encourage them to continue to do well and provide the best customer
service.

 Another objective is to consider Cars24's marketing strategy. Therefore, we

recommend that marketing and branding are very important to influence
customers and keep them coming to your store.

 Another goal is to learn more about Cars24's profitability. It turns out that
it's not so good here, so we need to open more stores in other cities and
increase our revenue and profit.

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 CONCLUSION
CARS24 – Future Plans
“Our goal is to expand our operations across India and provide our customers with
a hassle-free selling experience. If you are a car owner, you can drive your car to
the nearest CARS24 branch within an hour’s drive. can be sold at a high price.To
do this, we have invested heavily in making our technology more robust,
convenient for everyone and frictionless,” said CARS24. add Vikram, co-founder
of

The organization currently has more than 11,000 resellers booked on its way and
plans to raises its boundary to over 25,000 members over the upcoming 2 years.
The organization also told it is a working launching activity in a number of stage 2
and stage 3 cities respectively.

According to Cars24, they presently have nearby 14,500 transactions per month
with an avg transactions value of 3.7 million INR. Cars24 claimed to process 1.5
million car transactions annually, with a target of 1 million till the end of year
2021-2022.

CARS24's decriminalize model is basically base on a theoretical service fees

implied based on the cost of the vehicle. The used car market is a supply
constrained market and it is said that whoever solves supply will create India's
largest auto company, so the company is focused there and currently the only one
doing it right. company.

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What is the size and scale of the market opportunity?
According to industry estimates in India in 2018, there were 1.25 used car
transactions for each new car. In other words we can say that, use car counted is
about 57% of India's all car trade of 7.5 million units. According to this , use cars
is accounted nearby about 77% of all trading in India by 2026 , raises nearby
about 4.3 million today too about 9.5 million. It is said that it will increase more.
According to the latest buyer analysis by CARS24, almost 23.5% of public prefer
to buy use cars over new ones, that could leads to further expansion in this sector
respectively.

STUDENT ID:77121713335 Page 61

 BIBLiOGRAPHY

STUDENT ID:77121713335 Page 62

 Bibliography
 www.cars24.com
 https://www.businesstoday.in/
 https://www.zoominfo.com/
 https://grocurv.com/blog/2021/11/23/cars-24-marketing-strategy-driving-in-
success/
 https://economictimes.indiatimes.com/
 https://investorguruji.com/business-plan-of-cars24/
 https://www.mordorintelligence.com/
 https://www.analyticssteps.com/
 www.businessstandard.com
 https://www.mckinsey.com/
 https://www.indiatoday.in/
 https://thestrategystory.com/2021/09/09/cars24-business-model/
 https://iide.co/case-studies/business-model-of-cars24/
 https://investorguruji.com/business-model-of-cars24/

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