What It Takes to Fix India’s ₹2 Lakh Crore Used Car Market

At Masters’ Union, Off-Campus offers students unique opportunities to engage directly with leading companies' founders and top executives, right at their headquarters or factories. This initiative is a core part of the Outclass Curriculum, designed to provide unparalleled real-world exposure to business and industry dynamics.

This time, students from the UG programme had the opportunity to ride inside a car with Gajendra Jangid, Co-Founder and Chief Marketing Officer of Cars24, discussing the business, the market dynamics, and the industry's future.

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Watch the podcast to explore Gajendra Jangid’s entrepreneurial journey and how he identified opportunities in the used car market.

The Chaos and Opportunity in India's Used Car Market

India’s used car market is a paradox. It is massive and estimated at over 4 crore vehicles, but remains largely unorganised. Nearly 70% of transactions occur informally, leaving buyers and sellers to navigate a web of trust issues, pricing uncertainties, and logistical hurdles. Cars24 emerged as a digital disruptor in this space, aiming to bring structure, trust, and transparency to one of the country’s most chaotic sectors.

How Operational Excellence Fuelled Cars24’s Expansion

Cars24 has grown exponentially and now operates with over 8,000 cars in stock across major Indian cities. The company’s footprint is most significant in NCR, followed by Bangalore and Mumbai, with expanding operations in Ahmedabad, Chennai, Jaipur, Lucknow, and Kolkata.

The Math Behind Cars24

With a two-month inventory cycle, Cars24 holds about ₹10 crore in stock at any time. Managing holding costs such as marketing, refurbishing, rent, and depreciation is crucial to ensuring profitability. On an average transaction, the company earns around ₹15,000 per car sold after factoring in expenses.

Optimising Used Car Pricing with AI 

The used car market, unlike new car sales, has no set pricing. Cars24 leverages AI-driven pricing models that analyse over 100 variables to determine the optimal selling price. The system factors in vehicle condition, number of past owners, scratches and dents, insurance status, and real-time market conditions.

Big Returns Through Smart Financing

One of the most surprising insights was the role of financing in the used car industry. Cars24 operates as a Non-Banking Financial Company (NBFC), offering loans to customers directly.

“For every ₹1 in cost, financing can generate ₹35 in returns,” the founder revealed. About 60% of customers in Delhi-NCR opt for financing, and interest rates vary based on customer risk profile, rental history, income levels, and home ownership status.

This financial model ensures Cars24 is not just a used car seller but also a fintech player. By offering structured loans, the company improves accessibility for customers while generating higher returns per transaction.

Branding Strategies That Worked for Cars24

The Indian market has traditionally been skeptical of used cars. Overcoming this stigma required launching initiatives to build trust.

“Dhoni’s humility and hard work resonate with our brand. He’s well-known across India, which makes him the perfect face for Cars24,” the founder stated.

What’s Driving the Future of Used Car Sales?

With the slowing growth of the new car market, used cars are becoming the preferred option for price-conscious and value-seeking buyers. Cars24’s expansion strategy aligns with this shift, leveraging technology, financing, and consumer-centric policies to build trust and efficiency.

“For every new car sold, the number of used car sales will keep increasing. This is an industry primed for disruption,” the founder concluded.