Used car marketplace Cars24 has officially ended its pilot project, Inspare, a spare parts doorstep delivery initiative launched in Delhi-NCR. The company intended to streamline the procurement of spare parts for local automotive workshops through a centralized digital system. However, Cars24 faced unforeseen hurdles in this highly competitive and fragmented space, leading to the program’s closure.
Vikram Chopra, CEO of Cars24, announced the decision in a LinkedIn post. He acknowledged the platform’s initial success, especially with workshops affiliated with insurance companies. These establishments trusted Cars24 to deliver reliable and timely spare parts for their repair jobs. But the scenario shifted dramatically when the transaction moved beyond the insurance umbrella.
“For repairs not covered by insurance,” Chopra wrote, “workshops preferred local distributors who already maintained close relationships with them. They had the flexibility to choose, and they trusted the local players more than our platform.”
This candid reflection reveals the core challenge Inspare failed to overcome—loyalty to the existing supply chain network. Despite offering an efficient delivery model, Cars24 could not replicate the trust and personalized support that long-standing local suppliers provided to mechanics and workshops.
Understanding the Vision Behind Inspare
Cars24 launched Inspare with a vision to bring digital transformation to a traditionally offline and relationship-driven market. The team identified a common pain point among automotive workshops: delays and inefficiencies in sourcing spare parts. Many workshops struggled with inconsistent delivery schedules, pricing fluctuations, and poor inventory visibility.
Inspare aimed to resolve these issues by digitizing the spare parts ordering process. Through an app-based interface, Cars24 promised same-day delivery of automotive components directly to workshops. The service covered a wide range of parts, including frequently used consumables and model-specific mechanical components. With the program, Cars24 hoped to replicate its success in the used car sales segment and unlock a new revenue stream.
The service model appeared sound in theory. Cars24 leveraged its logistics capabilities, warehouse network, and tech backbone to build a reliable distribution system. Yet, the results on the ground told a different story.
Why Local Distributors Maintained the Upper Hand
Automotive workshops operate in a business environment where relationships and real-time needs dictate purchasing decisions. While Cars24 could ensure rapid delivery and transparent pricing, it could not provide the kind of customized support that local distributors offered.
Local suppliers maintain a deep understanding of workshop-specific needs. They offer flexible credit terms, immediate replacements for defective parts, and hands-on after-sales support. Mechanics often depend on these personalized interactions and real-world trust—a dimension that tech platforms struggle to replicate.
Additionally, local distributors typically hold inventory in close proximity, often within the same neighborhood as the workshop. Mechanics value face-to-face dealings and the option to physically inspect parts before accepting delivery. In comparison, a tech platform—even one backed by the scale and efficiency of Cars24—can feel distant and transactional.
These differences tipped the scale in favor of traditional suppliers when it came to non-insurance repairs. Without the insurance company’s mandate, workshops simply reverted to what they knew best: their local partners.
Challenges in Scaling a Hyperlocal Model
Cars24 faced a classic market entry challenge—disruption in a low-margin, loyalty-driven ecosystem. While customers readily adopt tech platforms for vehicle discovery and financing, the spare parts supply chain involves a web of small-scale operators, wholesalers, and semi-formal logistics partners. Most operate on razor-thin margins and run businesses based on decades of familiarity and word-of-mouth reputation.
Inspare struggled to penetrate this entrenched network. To scale nationally, Cars24 would have needed to replicate the service intensity of a local supplier in every neighborhood, while maintaining profitability. That task required significant operational investment, on-the-ground sales support, and deeper market education—all of which created friction for Cars24’s tech-centric model.
Furthermore, spare parts logistics demands precision and diversity. Workshops may need parts for a wide range of car makes, models, and variants. Managing a real-time inventory of thousands of components and ensuring 100% compatibility increases operational complexity. Any error in part matching can delay repairs and strain relationships with workshop owners.
What the Shutdown Means for Cars24’s Broader Strategy
Cars24’s decision to shut down Inspare doesn’t mark a failure of innovation—it marks an instance of strategic course correction. The company continues to dominate India’s used car marketplace and has expanded operations to include vehicle financing, car refurbishing, and international markets.
Shutting down a pilot that didn’t align with long-term vision or on-ground realities shows maturity in business decision-making. Vikram Chopra emphasized that the company would continue to explore new verticals but would remain pragmatic about what to scale and what to shelve.
This move also signals a key lesson for startups venturing into B2B service models: product-market fit in highly localized industries doesn’t come easily, even with strong tech capabilities.
The Bigger Picture: India’s Spare Parts Market
India’s automotive aftermarket, including the spare parts segment, is massive and growing. Industry reports estimate it to be worth over ₹70,000 crore ($8.5 billion) and expanding steadily as more vehicles enter the roadways and age. Yet, digitization in this space remains minimal. Small traders and distributors dominate the sector, and only a few players, such as Boodmo and Mobispares, have attempted to build a digital footprint.
Despite the opportunity, tech-driven entrants face the dual challenge of winning trust and maintaining operational efficiency. Many customers prioritize immediacy and relationship comfort over digital transparency or app-based tracking.
To succeed, platforms must combine digital speed with offline personalization—a hybrid model that demands patience, capital, and deep market insights.
What Comes Next for Cars24?
Cars24 will likely focus on consolidating and strengthening its core business verticals. The company has already built a reputation in used vehicle sales, ownership transfer services, car valuation tools, and financing solutions. With international markets such as the UAE now contributing to its growth, Cars24 has ample room to grow.
Additionally, the company could re-enter the spare parts space in the future with a refined model. Instead of replacing local distributors, it could consider partnering with them, enabling them to manage inventory through Cars24’s platform. This approach would maintain the human touch while empowering local suppliers with better visibility and tools.
The current setback does not diminish Cars24’s innovation credentials. Instead, it serves as a valuable checkpoint in the journey of building end-to-end automotive services in one of the most complex markets in the world.
Conclusion
Cars24’s decision to close its Inspare pilot in Delhi-NCR reflects the challenges of disrupting deeply traditional supply chains. The company entered the spare parts delivery business with strong intent, sound logistics, and market insight. However, the loyalty of workshops to local distributors and the hyperlocal nature of the spare parts ecosystem proved difficult to overcome.
By recognizing the limits of the model early and pulling back, Cars24 shows strategic discipline. The lessons from Inspare will likely inform future product decisions and help the company continue its journey toward becoming a comprehensive mobility solutions provider.