NEW DELHI: CarDekho will invest $ 20 million (approx. Rs 150 crore) in its used car business in the ongoing financial year.
The Girnar Software owned venture plans to open 250 franchise stores this year and ramp up this network to over 1,000 retail locations by 2022. The franchise outlets would be branded CarDekho Trustmark stores.
The used car market is seeing a surge in demand as buyers are increasingly preferring for personal mobility instead of public transportation due to Covid2019 scare.
CarDekho co-founder, Amit Jain said, “There is a surge in demand for used cars as this pandemic has reinforced the need for a personal vehicle. In FY20, there were 1.3 used car transactions for every new car transaction. We see this number going well above 1.8 times in the current year as people prefer personal mobility at a lower cost. We are entering into the franchise business model for selling Trustmark cars with the aim of providing economical personal mobility solutions to people in the most transparent and hassle-free manner.”
The pre-owned car market in India crossed 4 million units in size as the industry saw tailwinds post the GST rationalization to 12-18% and penetration of organized channels, said findings of the Indian Blue Book, compiled by Mahindra First Choice Wheels Ltd, released last year.
The Trustmark stores will also provide on the spot Loans and insurance service along with RC transfer facility under one roof. Moreover, the evaluation report of every Trustmark car is transparently available on the website and any customer can see it and discuss it before buying.
Announcing its foray, the company said it has launched its first franchise store for the sale of certified used cars in Jaipur. The next upcoming stores are planned in Delhi NCR and Bengaluru respectively.
The company already operates over 50 CarDekho Gaadi stores across India where it acquires used cars from their existing owners.
Earlier in June, CarDekho reported that its digital platform saw a 99% recovery in customer traffic for used cars after the lockdown wherein cars in the ₹1-5 lakh range saw maximum traction.
