CARS24 eyes franchise model for strengthening presence in tier 2 cities
CARS24, a tech-enabled used car marketplace, has launched its franchisee branch in Surat, which is the second largest automobile market in India. The company targets to expand its presence in tier 2 cities with the adoption of franchise business model.
CARS24 is aiming to introduce a training and mentorship program for its franchise partners in order to deliver personalised customer experience and successful on-ground execution. The company’s new business model will help it to expand its presence to new territories to Tier 3 and Tier 4 cities.
The company will further infuse an investment of Rs 10 lakh to Rs 15 lakh per franchise partner for ensuring that all the franchise led branches replicate the values and processes of CARS24.
Mehul Agrawal, Co-Founder and COO, CARS24, said, “The pre-owned car industry in India has seen rapid growth in past few years across peripheries and demands a more simplified model which can aid the complexities of consumer business. To achieve this, over the last 4 years, we have codified all the processes and created an internal playbook on how to buy quality cars at the best price.”
“As a next step, our key objective is to address the challenges that are being faced by the sellers and buyers of non-metro cities. We are filling the vast gap of a dependable partner in the used car segment and are associating the entrepreneurial spirit and local talent of non-metro cities with our platform for seamless execution. The launch is in line with our business expansion plan and we intend to make more such announcements in the near future,” he further added.
Currently, CARS24 has its presence in 35 cities with more than 150 branches. It is looking to expand its reach by opening 100 more outlets by the 2019-end. The company also intends to scale up its presence in over 300 Tier 2,3 and 4 markets by 2021.