CarDekho enters into franchise biz model, launches first exclusive store in Jaipur

Jain added, "We see this number going well above 1.8 times in the current year as people prefer personal mobility at a lower cost." With an investment plan of USD 20 million for 2020-21 in the used car segment, the company plans to open 50 exclusive franchise stores and 200 retail Trustmark locations in 2020-21 and over 1,000 retail Trustmark locations by 2022, said the release.

Automobile portal CarDekho on Monday announced its entry in the certified pre-owned car market through a franchise business model with the launch of the first such exclusive store in Jaipur. The company is looking to invest USD 20 million in its used vehicle business this fiscal and plans to set up 50 such exclusive franchise stores and 200 Retail Trustmark Locations by the end of this financial year, CarDekho said in a release.

The stores would come with an offer of an engine and transmission warranty for six months or 7,500 km as well as a seven-day shield, the company said in a release. The Pink City-headquartered full-stack auto tech firm already has over 50 Gaadi Stores across India to sell used cars.

"We are entering into a franchise business model for selling Trustmark cars with an aim of providing economical personal mobility solutions to people in the most transparent and hassle-free manner," said Amit Jain, Co-founder, and chief executive officer, CarDekho. There is a surge in demand for used cars as the coronavirus pandemic has reinforced the need for a personal vehicle, he said.

In 2019-20, there were 1.3 used car transactions for every new car transaction, he said. Jain added, "We see this number going well above 1.8 times in the current year as people prefer personal mobility at a lower cost." With an investment plan of USD 20 million for 2020-21 in the used car segment, the company plans to open 50 exclusive franchise stores and 200 retail Trustmark locations in 2020-21 and over 1,000 retail Trustmark locations by 2022, said the release. The next upcoming stores will be in Delhi-NCR and Bengaluru, it added.

CarDekho said claimed that the 7-day shield after the car purchase is an industry-first where if the car develops any issues related to mechanical or electrical functioning that were not part of the evaluation report, the store will get the issues rectified totally free of cost. These cars undergo a thorough evaluation process with checks on ownership, challan history, odometer tampering, accidental history, and age of the car along with general condition of the car, the company stated in the release.

These exclusive outlets will also provide on-the-spot loans and insurance services along with registration certificate (RC) transfer facilities under one roof, it said.