Driving Sustainability and Innovation in India’s Evolving Automotive Ecosystem

About a decade ago, when we started CARS24, we wanted to organise the used car market by simplifying buying and selling of used cars with the much-needed trust and transparency. We have come a long way and we see ourselves playing a much bigger role. We strongly see ourselves as a catalyst for sustainable development in India’s rapidly urbanising landscape. By addressing pressing environmental challenges and reimagining consumer experiences, we are shaping a future where businesses can thrive while contributing positively to society. 

After all, our vision of ‘better lives, better drives’ is the guiding lighting for us. 

To understand better, let’s look at some statistics. India’s used car market is projected to grow from $24 billion in 2023 to $50 billion by 2027, with digital platforms like CARS24 driving 60% of the growth. By enabling sales of used cars, we are helping more and more customers choose used cars instead of new cars. This choice leaves a positive impact on the environment. Moreover, our platform strongly supports the infrastructure for recycling of older cars and helping users scrap cars in an environment-friendly manner. 

By 2030, 30% of all vehicles sold in India are expected to be electric, creating immense potential for CARS24 to expand its EV portfolio. We are in the right place at the right time to play a critical role in this inevitable change as well. 

By diving deeper into specific initiatives, industry data, and long-term goals, this nuanced approach positions CARS24 as a leader not just in the automotive space but in the broader journey toward sustainable and inclusive growth.

A Major Shift: Ownership to Accessibility

On the back of India’s economic growth, the vehicle ownership patterns in the country are evolving rapidly. With urban congestion and rising awareness about climate change, consumers are prioritising access over ownership. This is not a sudden move. It has been in the making for a while. CARS24 aims to be at the forefront of this shift. 

So, how do we plan to go about it?

Subscription Models: We are keen on piloting car subscription models to reduce underutilised vehicles, enabling more efficient use of resources while addressing affordability concerns. This effectively stitches into our commitment to boosting the circular economy. 

EV Uptake: Our platform actively promotes the sale and purchase of electric vehicles (EVs), addressing India’s ongoing transition towards green mobility. By incentivising EV transactions through lower fees, we aim to make sustainable choices easier for our customers.

Data-Driven Environmental Impact

India’s air quality challenges necessitate bold interventions in the automotive space. From highlighting AQI to providing specific vehicle emission-related data, CARS24 actively integrates sustainability into its core operations. These initiatives and technology-centric measures lead to on-ground impact. 

Emission Reduction: By facilitating the resale of nearly-new vehicles, we contribute to reducing emissions caused by manufacturing new cars. Each resale saves approximately 4,000 kilograms of CO2, equivalent to planting 2,000 trees annually.

Scrappage Policy Alignment: Partnering with India’s National Vehicle Scrappage Policy, we ensure end-of-life vehicles are responsibly dismantled, extracting reusable components and recycling materials to reduce landfill burden.

Revolutionising Rural Mobility

While sustainability is often discussed in urban contexts, rural India presents unique challenges. Also, the majority of India resides in tier-2/3/4 cities. In this context, it’s critical to take into consideration the non-urban aspects. 

Rural Financing: Through CARS24 Financial Services, we offer financial support to first-time car buyers in rural areas, promoting mobility access in regions underserved by public transport.

Empowering Small Dealers: Our partnerships with rural car dealerships foster economic growth in these areas, enabling smaller businesses to leverage our technology for transparent pricing and broader reach.

Pioneering Transparency in an Unorganised Market

India’s used car market remains largely unorganised, with distrust as a major barrier. This is a major challenge as pre-owned vehicles are tied to the amount of trust individuals can place in each other. In such a scenario, transparency is a game-changer. We at CARS24 are making the most of technology to ensure trustful transactions and better customer experience. 

AI-Powered Pricing Algorithms: Our proprietary algorithms analyse market trends in real-time, providing sellers with the most accurate and competitive quotes.

Blockchain for Trust: We are experimenting with blockchain technology to ensure tamper-proof transaction histories for each vehicle listed on our platform, building trust among buyers and sellers.

End-to-End Digitisation: From doorstep car inspections to instant bank transfers, our fully digital ecosystem ensures a frictionless experience for users.

Data-Backed Reports: We are also building a database of car conditions and its entire history as well as its relative effect on their buying/selling, so as to facilitate transparency in this category.

The Next Energy Transition

The rising costs of fossil fuels and the urgency to decarbonise India’s economy place us at CARS24 in a pivotal role. It’s not going to be easy and that’s why we are keen on doing it. 

Battery Recycling: With active collaborations with Indian startups in the lithium-ion battery space, we are also exploring ways to recycle EV batteries responsibly, reducing their environmental footprint.

AC Gas Recycling: Rising car ownership also means increased release of harmful substances like refrigerants into the atmosphere. To help curb this, we are actively promoting AC gas recycling for cars through our platform. 

Correct Disposal: In totality, building a car takes a few months but it takes several decades, if not centuries, for it to be disposed of properly. This principle applies mainly to heavy components like car batteries. To address this grave issue, CARS24 facilitates correct disposal. 

A Trillion-Dollar Opportunity

This is a massive endeavour as India is poised to become one of the world’s largest automotive markets. As of now, less than 3% of the population (and 10% of the total households) in the country owns a four-wheeler. In the near future, this figure is going to scale and this is precisely why CARS24 aspires to lead this transformation

India-First Innovation: By aligning our strategies with local challenges—be it congestion, affordability, or environmental degradation—we aim to make CARS24 not just a unicorn but a cornerstone of India’s trillion-dollar mobility industry.

Impact Beyond Business: We measure success not only in financial terms but also in the positive change we bring to communities and the environment. 

Building a Workforce for the Future

With ~8,000 employees, CARS24 reflects India’s diversity and is deeply invested in human capital. We have integrated systems, programs and practises to help build an organisation that is capable of contributing positively to the future of our ecosystem. 

Upskilling Programs: Recognising that 70% of our workforce is semi-skilled, we provide free vocational training in data analytics, AI, and EV technologies, empowering employees to future-proof their careers.

Inclusive Hiring Practices: We aim to close gender gaps in India’s workforce by hiring more women in roles traditionally dominated by men, such as automotive appraisals and logistics.

Grievance Redressal Systems: Acknowledging workplace challenges, we have instituted anonymous feedback systems and weekly town halls to ensure employees feel valued and heard.

Lastly, it’s not just about the present that we are working on today but also about building the future tomorrow. We firmly believe in the overarching goodness of the ‘better drives, better lives’ philosophy that we adhere to.