Cars24 launches its second-largest mega refurbishment lab in Bengaluru

Cars24, a leading e-commerce platform for pre-owned vehicles, said that it has launched  its second largest Mega Refurbishment Lab in Bengaluru. The massive facility located in Kambalipura Village, Karnataka is spread over 105,000 sq ft and will refurbish over 80 cars daily and provide upwards of 250 auto expert jobs.

The newest facility in Bengaluru will join its recently unveiled counterparts in Pune, Hyderabad, Delhi NCR, Mumbai, Ahmedabad, and Chennai. The unit is the last of the seven Mega Refurbishment Labs that were set to open in the country. Pre-owned car buyers will now have access to high-quality used cars from Cars24 coupled with multiple benefits such as a 7-day return policy, 6-month warranty, and doorstep delivery.

This move follows a Series G funding round announced in December 2021 where the firm raised $400 million at a $3.3-billion valuation.

“We are excited to launch our second-largest Mega Refurbishment Lab in the IT capital of India. Bengaluru is an important market for Cars24 and the Chennai-Bengaluru industrial corridor is a major region for all automotive players in the country,” said Kunal Mundra, CEO, CarsIndia-Cars24. “The latest MRL in Bengaluru will ensure that only the highest quality vehicles are delivered to consumers in the region.”

Cars24 said it is propelling change in the pre-owned car ecosystem and setting benchmarks for high-quality used cars. The majority of the used car market is primarily unorganised and has been plagued by inefficiencies due to the inherent information asymmetry in the vertical. Through the convergence of technology-driven cutting-edge facilities, Cars24 said it is transforming the pre-owned auto industry and thereby filling the standardisation and benchmarking gap prevalent in the industry. The brand also leverages AI, machine learning and data science to standardise and optimize the refurbishment process. This will make the entire process efficient and effective while eliminating subjectivity.

“Karnataka has recently emerged as the fourth-largest exclusive economic cluster development hub globally, making it an attractive destination for newer employment opportunities,” said Mundra. “The launch of our MRLs in the Southern markets of Karnataka, Tamil Nadu, and Telangana will allow consumers’ access to high-quality cars and provide job opportunities in the region. We are confident that this move will further strengthen our foothold in the Southern market and reinforce our goal of providing affordable high-quality vehicles to our customers.”

Founded in 2015, Cars24 aims to transform the way consumers buy and sell cars by leveraging technology at every leg of the consumer journey to solve genuine pain points and deliver a seamless experience. It allows customers to shop from 10,000 cars on the platform, finance and select doorstep delivery with additional features of 6-months warranty and no questions asked return policy. Cars24 vehicles are inspected, reconditioned and photographed in 360-degrees at the refurbishment centers, so customers get a reliable and transparent buying experience along with quality cars.

Cars24 competes with players such as Droom, Ola, CarDekho, CarTrade and Spinny who are also betting on the used car market. India’s used car market will grow at a compound annual growth rate (CAGR) of 11 per cent to log sales of up to 8.3 million units by FY26, according to consulting firm RedSeer, marking a trend of people preferring personal vehicles for travel in the coronavirus.

The pre-owned car market is set to more than double to 8.2 million units or $47 billion over the next five years ending FY26 from 4 million in FY21 or $17 billion, which means that two used cars will be sold for every new car sold, according to a report by investment banking firm JM Financial. The used-car market was 4.4 million units worth $19 billion in the pre-pandemic FY20, according to the report that also forecast a clear highway for the used-car market driven by the pandemic-induced demand for personal mobility and affordability because after the BS-VI implementation cost of new cars has been on an upswing.