ASSIGNMENT

OF
BUSINESS ENVIRONMENT
ON CARS24

SUBMITTED TO
- Prof. Rakesh Kumar Meet
SUBMITTED BY
- Gaurav Gurung
- Kashish Khatwani
- Rohit Kumar
1. About the Company, It’s Competitors and the Industry
About the Company
CARS24 is a technology platform which facilitates the purchase and sale of used cars in the span of an hour
following a single visit to one of the platform’s branches. Apart from payment, the platform also handles
paperwork such as RC transfer and authorizes end-to-end transactions. The firm sells these cars online via its
proprietary auction platform to businesses across India, which is dealing with pre-owned cars.
Cars24 is an ISO 9001: 2015 certified company and is one of the fastest used car markets in India. Cars24 is
the first company in the used car industry that has introduced a 'made-to-trade' approach to car sales. On the
other hand, CARS24 owns thousand of used car dealers who buy these cars online with mobile auctions from
these potential car owners throughout India.

The unique C2B company model has helped it integrate existing C2C and B2C models.
As of now, the platform has more than 10,000 channel partners from over 230 cities across India, having more
than 210 branches across 70 cities.
To build this state with its unique benefits, CARS24 currently owns a used automotive system that includes
sectors such as financial services, and information services. In addition to working with used vehicles online,
CARS24 also has an offline connection with brick and mortar stores, with more than 155 branches in 35 Indian
cities.CARS24 is disrupting the car industry owned by its owners in India and addresses the challenges faced by
car owners, by providing them with world-class fast, easy and trouble-free customer information.
Cars24 has also obtained an NBFC license from the Reserve Bank of India (RBI) of its new organization -
CARS24 Financial Services. Through Cars24 Financial Services, the company will assist car lending to
customers and financial channel partners to help them grow their businesses. Customers will be able to access
credit according to the price of the car they are buying. For consumers, the average ticket size will be INR 2.5
Lakh - INR 3 Lakh.
The latest funding on November 24, 2020 led the company to join the Unicorn Club by raising $ 200 million in
the Series A round. It was led by DST Global with a post money valuation of CARS24 being $ 1 billion.
Competitors
CARS24 is directly involved in a throat-cutting competition in the market. It competes with companies
operating in the same category and targeting target audiences such as CarDekho, Droom, Quikr Auto, Olx,
CarTrade and NDTV Auto.

Industry
CARS24 is a next generation ecommerce platform for pre-owned autos (cars and bikes). We provide the best
experience for car buyers by offering a wide assortment of certified cars that are home delivered in a click of a
button while sellers get the best price of their vehicle in less than 1 hour.
In other words, it deals in used cars.

2. CARS24 Market Size and geographical presence in India and Abroad

The Indian used car industry has been on a rapid growth path for a couple of years and is poised to continue its
rise in coming years as well. According to CRISIL report, it’s said that the Indian used car market will continue
growing at a steady pace of 15%.
The organized players in the used car market such as Mahindra First Choice, Maruti True value along with
internet companies including CarDekho, Olx and Cars24 made up 18% of the total market and have benefitted
from the upsurge in sales of used vehicles as new car sales have dropped in the last two fiscals. One such
player, CARS24, has achieved around 82% growth in its topline during the last fiscal which surged from
Rs1687.8 Crores in FY19 to earnings of a little over Rs3065.23 crores during FY20.
Nearly 96.8% of the income was generated through the sale of used cars, which grew by 80% to Rs 2,966.11
crore in FY20. Another Rs 22.03 crore was earned through ancillary services including car delivery charges and
parking fee as these collections grew 5.4X during FY20.

Cars24’s primary expenditure was the purchase of stock of used cars which amounted to Rs 2,865.43 crore in
FY20, growing by 76.5% from purchases of Rs 1,624 crore made in FY19. On similar lines, employee benefits
related costs also jumped by 51.5% from Rs 143.4 crore in FY19 to Rs 217.2 crore spent in FY20.
The expense sheet also reveals that the company has cut down its advertising expenses by 23.6%, from Rs
185.5 crore in FY19 to Rs 141.64 crore in FY20. Expenditure related to both IT & Customer care and office
manpower has doubled to Rs 40.8 crore and Rs 23.8 crore respectively.
Another Rs 39.5 crore were spent on rent and power and pushed the total expenditure to Rs 3,350 crore in
FY20, registering a 66.4% leap from Rs 2,013.5 crore spent in total during FY19. Cars24 management spent Rs
1.11 to earn a single rupee of operating revenues in FY20 while its net cash outflow from operations increased
marginally to Rs 362.7 crore in FY20.

With an 82% increase in collections, while controlling the growth of operating costs, the company has managed
to bring down its annual losses by 12.5% from Rs 325.7 crore in FY19 to Rs 285 crore lost in the fiscal ended in
March 2020. EBITDA margins have also improved by 1200 BPS from -18.92% in Fy19 to -6.92% in FY20.
To fund its operations during FY20 the company had raised Rs 735.42 crore through allotment of shares and
borrowed another Rs 45 crore. Cars24 has recently entered the club of unicorns with a $200 million worth
Series E round led by DST Global.
Geographical Presence in India and Abroad

As of now, CARS24 has more than 10,000 channel partners from over 230 cities across India, having more than
210 branches across 70 cities.
CARS24 announces international expansion, now operational In UAE & Australia. CARS24 is set to disrupt the
used automobile ecosystem around the globe. The company has recently launched its business in Australia and
UAE and is ready to launch business in Southeast Asian and Middle East countries this year.
3. Management Team of the Company

o Vikram Chopra, CEO and Co-Founder of CARS24

o Mehul Agrawal, Co-Founder and COO of CARS24
o Gajendra Jangid, Co-Founder and CMO of CARS24
o Ruchit Agarwal, Co-Founder and Chief Financial Officer of CARS24
4. Organization Structure of the CARS24

BOARD N-1 N-2

CEO
CEO CFO
CFO Chief Human
Resources Officer
Vikram Chopra Ruchit
Ruchit Agrawal
Agrawal Mrinal Sinha

Chairman
Chairman of
of the
the Board
Board COO
COO
Mehul Vice President of Data
Mato Peric Mehul Agrawal
Agrawal
& Strategy Naresh
Mehta
CEO,
CEO, Cars
Cars India
Kunal
Kunal Mundra
Mundra
Product Head of
Chief Customer Team
Chief Marketing
Marketing
Head Prakul Gupta
Head (Joining)
(Joining)
Sudhir
Sudhir Shukla
Shukla

Chief
Chief Marketing
Marketing
Head
Head and
and Co-
Co-
Founder Gajendra
Founder Gajendra
Jangid 
Jangid 

Chief
Chief Technology
Technology
Officer
Officer Marut
Marut Singh
Singh

General
General Manager,
Manager,
Brand
Brand Nida
Nida Nausad
Nausad

Customer
Customer
Experience
Experience &
Process
Process Excellence
Excellence
Ashita
Ashita Sharma
Sharma

Senior
Senior General
General
Manager
Manager of
of Human
Human
Resource
Resource –– Abhishek
Abhishek
Gera
Gera

5. Internal Environment of the Company

 MISSION
Their mission is to change the way used cars are bought and sold around the world. With this in mind,
they set out for 2015, and traveled a long way from there - from one office, to 205 branches in 182
major cities in India. More than 4 Lakh happy customers have used our platform since then. And with
 continued innovation, more partnerships, and valuable relationships with people, they want to continue
to solve problems for consumers and add freedom and value to their lives.

 VISION
 We trust, and build trust
We work hard to get the customers to trust us, and we do it by placing them first. Whether its
evaluation, customers protection policies, warranties, or just customer support- we’re there for
every customer, every stakeholder.
 We invest in employees and partners
A natural extension of our first point- A culture of trust and cooperation means that every
employee and partner is a crucial part of our ecosystem. We invest in every one of them and we
measure success not only in terms of profits and balance sheets but in the success each employee
and partner sees in their professional and personal lives.
 Have high standards
Perfection and progress is what we work towards. And once we achieve that, we move the bar
higher and higher, so we can keep outdoing ourselves.
 We’re frugal, in a prudent way
We’re for spending, but only when we see it adding value- to our employees, partners,
customers, or any other stakeholder. A great workplace isn’t defined by bells and whistles like
grand offices and fancy food, but in learning, value and profits that benefit every member of
CARS24.
 We’re in it for the long haul
CARS24 is on a long journey, and we’re not taking any shortcuts. The milestones we pass, like
quarterly results and yearly targets are but smaller rewards in our longer and uncompromising
drive to the very top, and the success we see in the long term is what keeps us going.

 VALUES
 Customer obsessed
Obsession is a thought that continually occupies the mind and that’s how we feel about
customers at CARS24. Acting with integrity to build, customer trust, exceeding customer
expectations, resolving their problems and minimizing their time and effort to engage with us.
 Trust
We build trust with each other, our partners and our customers. We’re respectful towards each
other and always assume good intent. We operate transparently, we speak honestly, and we
celebrate successes and we learn from failures as a community.
  High performing
We set ambitious goals and challenge ourselves to exceed them through creativity, efficiency and
sheer hard work. And through the spirit of continuous innovation, we know we can always do
better: innovation is out status-quo.
 Ownership
You’ll never hear ‘that’s not my job’ or ‘that was not my responsibility’ from us at CARS24.
We’re persistent in overcoming obstacles or finding the right solution. We spend money wisely
and efficiently, as if it’s our own. We’re never afraid to put up our hand, and say, ‘I made a
mistake!’ and we support each other whenever in need.
 Invest in people
We’re generous with our time, our knowledge; our resources and experience to help our
colleagues from around the business learn, grow and succeed. And we are prepared to invest by
whatever means necessary to deliver a better experience for the customer.

 SWOT Analysis of the Internal Environment

STRENGTHS
- First to market
- Huge dealer Base- 5000 dealers
- Early adopter base for any new initiatives
- Spread across more than 100 cities
- Bidding platform
- Huge data of Pre-owned cars

WEAKNESSES
- Huge difference between online valuation v/s post inspection price
- Negative feedback from users
- Currently restricted to Tier 1 and Tier 2 cities
- Idle workforce during non-season
6. External Environment of the Company
PESTLE OF CARS24
 Political factors
Carbon Emission regulations: Politicians have realized the growing environmental concern of the
public. They are now exploiting the opportunity by introducing new carbon emission environment
regulations to address the public concern.
 Economical factors
Pandemic of Covid-19: The pandemic of Covid-19, worldwide lockdown, the shutdown of business,
uncertain economic environment, masking, social distancing, travel restriction and mandatory
vaccination, if you’re travelling, have affected many business especially the automotive industries
dealing in automobiles as there was lack of mobility. The most important impact of the pandemic is the
worldwide economic recession, increasing unemployment rate, and lower buying power. Such economic
factors decreased the sale of automotive companies.
 Social factors
Driving trend: The customer market still has the fascination to own the latest model of the car. The
internal desire motivates them to buy one or more vehicles for themselves but due to high price, many
prefer to buy second hand car. Cars 24 know the shopping trends, lifestyle of people, and customer
attraction features. They target the customers accordingly and most importantly such trends have
increased the growth, sale and revenue of the Industry.
 Technological factors
Research and Development Investment Levels: If there is high level of investment in technology
development sector then there are high chances of building a self sustaining ecosystem that drives
innovation. CARS24 can leverage such a situation to hire the best people in business.
Preparedness for 5G related infrastructures: Countries across the world are trying to prepare
themselves to install 5G infrastructure. CARS24 should access to what level the local market is prepared
to roll out the 5G connectively.
 Legal factors
Transparency in judiciary system and Processes: Transparency is essential for fair and consistent
decision making. If the process is consistent and transparent then CARS24 can plan ahead with greater
conviction.
 Environmental factors
Level of Consumer activism regarding environmental concerns: CARS24 needs to know the level of
consumer activism regarding environmental concerns is. It will help CARS24 in both developing
environmentally friendly services.
Waste Management: What is the policy of waste management in the prospective market and how
CARS24 can adhere to the waste management requirements in that market.

 SWOT Analysis of the External Environment

 OPPORTUNITIES
- Large unorganized cars resale segment
- Reachable market size
- Explore mew business model

THREATS
- Other competitors entering the market- Olx, Quikr
- Bids getting cancelled- increasing huge inventory of leftovers cars
- Dealers can still procure cars from other sources and competitors

PORTER’S FIVE FORCES MODEL

The porters five forces tools is a simple but powerful tool for understanding were power lies in a
business situation.
This is useful because it helps understanding both the strength of the current competitive position and
factors affecting the strategy development.

 Threat of New Entrants

 The threat of new entrants is very high for the used cars sales in service industry. There are
many existing and new automobile service players are coming to the market. Moreover, there is
a high competition of existing players like OLX and Quikr.

 Threat Of Substitutes
Substitutes for their service already existed in the market from small players to big players. Most
of the car service providers are giving the same services which one is providing to defend their
market share in terms of volume or other.
From a customer perspective, the alternative option will be either to go for nearby service centre
or to contact other options which are easily available for their location. Sometimes, other
substitutes include own brand service centre. Mostly people prefer their own brand service centre
here they can use many services as providing by the company itself under warranty scheme or
under extended warranty scheme.
 Bargaining Power Of Suppliers
For the players like company owned the bargaining power of suppliers is less as it can get
constant supply of spare parts including OEM parts ( Vehicle manufacturer’s brand ) and OES
parts ( reputed brands of component manufacturer’s either domestic or international, supplying
to vehicle manufactures or aftermarket). When there are many suppliers in an industry, they do
not have much power due to that industry manufactures can easily switch to another supplier if it
is necessary.
 Bargaining Power Of Buyers
The bargaining power of industry affects industry profitability by their ability to hold out for
lower price, higher quantity and better price. In used car industry, the bargaining power of the
buyers is moderately high.
There are various brands and services centres are available to choose from nowadays and the
buyers have low switching cost due to the various brands with similar specs and price with
competitive marketing.
Also, the other companies are offering and providing many attractive membership schemes like
Olx and CarsDekho and also providing offers/ packages for specific model of car. Hence, the
bargaining power of buyers is high.
 Industry rivalry
Used Cars industry in India is growing very rapidly with all major players having their service
stations and sales in India. This is a major threat to existing Indian automobile players.

7. Our Recommendations to the company

CARS24 should deal in the spare parts of vehicles.
CARS24 need to work on the quality of products, service provided and customer satisfaction.
CARS24 should invest in marketing and advertising of pre-owned vehicles as a lot of buyers still look at
second hand purchase against their dignity.
A good marketing and advertising can certainly change their perception towards pre-owned car
purchase.