India’s can buy and sell cars. CarTrade Exchange, the

India’s one of the dominant networked auto
market place to providing buyers & sellers an organized platform for
purchasing new and pre-owned vehicles. It was founded by Vinay Sanghi in 2010 It has its headquarters at Mumbai, India.
Since its inauguration in 2010, they have expanded their offerings across India
with a strong network of more than 4000 dealers. At present, more than 4
million consumers visit CarTrade.com every month and avail its features.
CarTrade.com’s business can be classified into two parts: CarTrade.com, the
customer entry where the users can buy and sell cars. CarTrade Exchange, the
trader entry which helps them advocates their business operations.

 

HISTORY

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Their family has been into the auto
business since the 1960s. Vinay Sanghi spent
two years in the 1990s in the family business and moved on to incubate Mahindra
First Choice, a joint venture between Mahindra Group, myself and HDFCBSE -1.35
%. He spent 10 years with them and in 2009, started CarTrade. The idea was to
simplify car buying for the Indian consumer. We spent the first four years
building out the used car experience. By 2014, we were leaders in the industry
though we were the last marketplace to start. In 2015, he acquired CarWale. Together,
they had a very strong leadership in used and new cars. Last month, they had 19
million unique customers visit their website. Now, they are a complete
marketplace and have the largest supply of listings and dealers of used and new
cars.

 

 

 

 

POSITIONING STRATEGY:

The quality wanted to reach out to the fluid internet base in
the country and showcase CarTrade.com as the only online terminal for
catching the widest range of cars and the best deals. Using Vserv’s innovative
Search Intent Ad format, we created a mobile ad campaign to attract buyers on
mobile and to create brand awareness about CarTrade. This modern format allows having
a built-in search trait within the mobile ad which takes the user to the exact
search results based on the keyword. This helped define CarTrade.com as the
go-to terminal for consumers interested in buying cars.

 

CUSTOMER SUPPORT:

·        
CarTrade
allows its customer a privilege to look for used and new cars without adjusting
their luxury, which otherwise they have to visit around 20 odd traders.

·        
Then, CarTrade
gives assurance of certified cars to the customers. First thing that strikes the
mind of any customer is the condition of the used cars and this doubt was
cleared by CarTrade through the certified engineers of CarTrade who checks the
cars before listing it on the website along with a report. CarTrade has 200
automobile engineers, on its payroll, who certify cars on its website.

·        
To make
sure if the price is reasonable, and to help its customers, CarTrade provides a
justified price one should pay for the car.

 

PRICING STRATEGY:

Distinguished
value pricing is made up of a group of inputs, such as buyer’s perception of
the product performance, the channel deliverables, the warranty, customer
backing, and softer attributes such as the suppliers prominence, principles and
revere. Value pricing is a matter of re-engineering the company’s operations to
become a low cost producer without sacrificing quality to attract a large
number of value conscious customers. Car trade used special prices in certain
seasons to draw in more customers. Car trade uses customer segment pricing by
paying different prices for the same product or service.

 

 

 

 

PRODUCT STRATEGY:

Car
trade continually asses the needs of end customers, dealers, competitors &
global trends in defining & evolving the CarTrade exchange product. CarTrade
defines both long term & short term strategy plans to achieve the product
vision.

 

PROMOTION
& DISTRIBUTION:

            CarTrade started a certification service to
provide quality checks to pre-owned cars and for maintain clarity. ‘CarTrade
Right Price’, is a tool which suggests value for listed cars. Now, the company
is assimilating these tools to link the financing gap. 
“Banks are not comfortable extending loans
without proper information and the certification and price information helps
them to evaluate the value for financing,” CarTrade major source of income is through display
advertising AdSense”

 

MARKET SHARE:

            CarTrade
recently lifts 33 million consumers visiting every month and asserted that it has
8000 pre-owned car dealers.

Funding raised
in 2016 –
Rs 950 crores.

Overall
funding raised –
Rs 1200 crores. 

Growth – 60% (last six
months) 

 The predicament
highlights the nature of the used car market. It does not affect much assurance
in bankers or clients and that is the crack that CarTrade seeks to link.

 

SALES & PROFIT:

“These businesses have 50-60% of operating margins
because 80% of the traffic we get is organic. Our major costs comprise of
technology, staffing and marketing and it is not high.

 The company currently sells 50 million bikes a
year. CarTrade reaps 70% of its credit out of the new car division through disclosing
and charges contribution fee from dealers – Rs 6,000 to 40,000 per month from
used car dealers and Rs 10,000 to 2 lakh per month from new car dealers.

 To drive up its revenue the brand lately started
a crisp drive termed ‘CarWale Advantage’ which allows buyers a price choice on
cars that have continued unsold for over 60 days by new car dealers. This,
Sanghi claims, has added 5% to CarWale’s credit.

CARTRADE COMPETITORS:

·        
CarTrade’s biggest competitor in Indian market
is cardekho.com and Droom which
provides similar kind of services.

·        
Cardekho has partnership with more than 4000
car traders over the nation.

·        
Droom offers a various automobile services like
warranty, RSA, insurance and auto loan.

 

CHALLENGES:

·        
Biggest hurdle is in instilling the confidence of used-car
buyers. Most of the buyers of pre-owned cars would always be worried about the
post sales service & spares availability.

·        
Advancing legal claims and discharge pattern are also the
threat for the growth of pre-owned industry.

·        
Due to rigid discharging pattern, it is getting severe to
sell aged cars with diesel engines.

 

RECOMMENDATION:

 Growth of pre-owned industry requires
innovative business model and product offerings to surpass the growth barriers.
Independent organized players shall also invest in service & spares
infrastructures and their TAT of service and spares availability shall reduce
and ultimately shall become
equal to new car dealerships