The Indian pre‑owned car market has undergone a massive transformation in the last decade. What once felt disorganized, opaque, and dealer‑driven now features structured, tech‑enabled platforms that bring transparency and speed to vehicle transactions. Among the disruptors, CARS24 stands out as the company that revolutionized how Indians buy and sell used cars. By combining technology, consumer trust, and full‑stack services, CARS24 reshaped the used‑car experience for sellers, buyers, and dealers alike.
1. India’s Pre‑Owned Car Market: A Landscape Ready for Disruption
India’s pre‑owned car market continues to expand rapidly. In 2023, it reached approximately $30.5 billion, and analysts project it to grow to $36–40 billion in 2025. By 2030, this market could nearly double, crossing $70 billion. While the growth rate for the overall market hovers around 14% CAGR, the organized online segment is surging at over 27% CAGR.
Despite this growth, traditional transactions dominate the sector. In 2024, over 70% of used‑car sales happened through unorganized local dealers. These dealers often lacked standardized pricing, transparent documentation, and warranties. Sellers frequently endured weeks of haggling, delayed payments, and uncertainty regarding the transfer of ownership. Buyers, on the other hand, faced risks from hidden vehicle defects and legal complications.
This environment created the perfect opportunity for a disruptor to organize the market and bring credibility to the process. That disruptor was CARS24.
2. CARS24’s Bold Entry into a Fragmented Market
CARS24 entered the market in 2015, founded by Vikram Chopra, Mehul Agrawal, Gajendra Jangid, and Ruchit Agarwal in Gurgaon. Vikram Chopra’s personal frustration with selling his car ignited the company’s mission. He spent weeks struggling with negotiations, dealer uncertainty, and paperwork delays. This pain point inspired the founders to create a platform that simplified and accelerated the car‑selling process.
From the beginning, CARS24 positioned itself as a C2B (consumer‑to‑business) marketplace rather than a C2C platform. Instead of connecting car owners directly to individual buyers, it bought cars from owners and auctioned them to a verified network of dealers. This approach removed the friction and unpredictability that had long defined the Indian used‑car market.
3. Innovative Business Model: The Engines of Disruption
CARS24 disrupted the pre‑owned car market through a combination of technology, trust, and integration. Several core innovations fueled its rapid success:
Instant Valuation and Digital Auctions
CARS24 developed an AI‑powered pricing engine that analyzed market demand, car condition, and city‑specific data to generate instant valuations. Sellers could know the fair market value within minutes. Once a car entered the system, CARS24 conducted real‑time digital auctions among thousands of registered dealers. This created a competitive bidding environment that ensured better prices for sellers and a transparent process for dealers.
Fast Payments and Complete Paperwork
Unlike the traditional market, where sellers often waited days or weeks for payment, CARS24 transferred money within a few hours of finalizing the sale. The company also handled all documentation, including ownership transfer and road tax settlements, giving sellers peace of mind and legal security.
Comprehensive Inspection and Refurbishment
CARS24 integrated multi‑point vehicle inspections to evaluate cars accurately. Over time, it built refurbishment capabilities to enhance car quality before selling to dealers. By offering cars with verified conditions, CARS24 improved the trust equation for dealers and indirectly for the final buyers.
Warranty and Buyback Programs
The platform introduced warranties, return policies, and buyback offers, which were rare in India’s pre‑2015 market. These programs gave buyers confidence in purchasing pre‑owned cars and differentiated CARS24 from unorganized competitors.
Full‑Stack Expansion
From 2019 onward, CARS24 moved beyond a marketplace model. The company added financing, insurance, and legal services, effectively creating a one‑stop ecosystem for pre‑owned cars. By acquiring an NBFC license, CARS24 started offering instant loans and EMI options for buyers, further strengthening its market control.
4. Scaling the Disruption
CARS24’s phygital model—a hybrid of physical branches and digital infrastructure—powered its nationwide expansion. By 2025, the company operated over 205 branches across 182 cities, supported by 10,000+ verified dealer partners. This network allowed CARS24 to serve both tier‑1 and tier‑2 cities, tapping into markets that traditional organized players often ignored.
Funding and investor support played a crucial role in scaling operations. CARS24 raised nearly $1.5 billion across multiple rounds, achieving unicorn status in 2019 and a $3.3 billion valuation by 2021. With this capital, the company accelerated technology development, marketing campaigns, and international expansion to UAE, Australia, Thailand, and Saudi Arabia.
5. Transforming the Ecosystem
CARS24 disrupted every layer of the used‑car ecosystem:
- For Sellers: The platform eliminated middlemen, reduced selling time from weeks to hours, guaranteed instant payments, and ensured legal safety with ownership transfer.
- For Buyers and Dealers: Dealers accessed quality cars through competitive auctions without spending time scouting local markets. Buyers benefited indirectly through warranties and better‑maintained vehicles.
- For the Industry: CARS24 raised the trust and transparency standards, which encouraged more owners to sell old cars and more buyers to consider pre‑owned vehicles as a viable alternative to new ones.
The company’s impact reflects in the rapid growth of the organized market segment, where online players like CARS24, Spinny, and CarDekho are steadily capturing share from unorganized dealers.
6. Latest Developments in 2025
CARS24 continues to innovate and expand its services:
- New‑Car Aggregator Platform: In early 2025, the company launched a digital showroom for new cars, allowing users to browse models and offers without owning inventory. This step positioned CARS24 as a comprehensive auto retail player, not just a used‑car platform.
- CarTruth Service: This feature lets buyers verify the condition and history of any car, even if purchased outside CARS24. By extending trust beyond its ecosystem, the company reinforced its brand credibility.
- Expanded Financing and E‑Challan Services: CARS24 scaled its financing operations to 50+ cities and added traffic fine and e‑challan settlement services, creating a suite of post‑sale solutions.
These innovations demonstrate how CARS24 continuously moves beyond transactions to build a complete car‑ownership experience.
7. Challenges and Road Ahead
Despite its success, CARS24 faces challenges:
- Low Market Share: India’s used‑car market remains largely unorganized, leaving CARS24 with a single‑digit share of total transactions, though it dominates the online segment.
- Supply Constraints: Limited new‑car sales during 2020–22 created a shortage of 3‑5‑year‑old vehicles, driving up prices and squeezing margins.
- Rising Competition: Platforms like Spinny, CarDekho, and OEM‑backed certified programs are adopting similar inspection and financing models, increasing competitive pressure.
However, the company’s first‑mover advantage, strong brand equity, and tech‑driven ecosystem position it to sustain growth. Analysts expect the company to capture double‑digit market share in the organized segment within the next few years.
8. Why CARS24 Will Continue to Lead
CARS24 disrupted the pre‑owned car market by solving three fundamental problems: lack of trust, lack of speed, and lack of transparency. It built a vertically integrated system that connects sellers, dealers, and buyers while handling valuation, inspection, payment, financing, and legal processes under one umbrella.
As the Indian used‑car market heads toward $70 billion by 2030, and digital adoption accelerates, CARS24 remains positioned as the market’s leading architect of change. Its ability to innovate beyond car sales—into inspections, financing, new‑car aggregation, and post‑sale services—ensures that its disruption will continue shaping the industry’s future.
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