Cars24 Services Private Limited

A SUMMER INTERNSHIP
REPORT ON
“Process of Operation Management in Cars24”

Submitted by:

MANSI GUPTA
03121201717
BBA(G)
Batch- 2017-2020

Submitted in Partial Fulfilment for the Award of the Degree of Bachelor of

Business Administration

MAHARAJA SURAJMAL INSTITUTE

Affiliated to Guru Gobind Singh Indraprastha University
(GGSIPU)
 DECLARATION

I declare that the project entitled “Process of Operation Management in Cars24” at CARS24
SERVICE PRIVATE LIMITED submitted to Maharaja Surajmal Institute, Guru Gobind Singh
Indraprastha University, Delhi is prepared by me during the academic year 2019-20 under the
supervision and guidance of Mr. Himanshu Vyas, Territory Manager Operations (UP), Cars24.

I further affirm that the work reported in this research is original and no part or whole has been
submitted to anywhere for any purpose.

Sincerely,
Mansi Gupta
03121201717
 ACKNOWLEDGEMENT

The internship opportunity I had with “Cars24" was a great chance for enhancing my learning’s
and professional development. Therefore, I considered myself very lucky to have this
opportunity. I am also very grateful for getting a chance to meet so many wonderful people and
professional who led me through this internship period.
I express my deepest thanks to Mr. Himanshu Vyas, Territory Manager Operations (Uttar
Pradesh) who in spite of being extraordinarily busy with his duties, took time to hear, guide and
keep me on the correct path and allowing me to carry out my project and for taking part in useful
decision and giving necessary advice and guidance and arranging all facilities to make work easy
and interesting. I choose this moment to acknowledge his contribution gratefully. Also, I would
like to express my gratitude to Ms. Chetna, my summer training project guide for her
guidance and constant supervision as well as for providing necessary information regarding the
project & also for their support in completing the project.
I perceive this opportunity to be a big milestone in my career development. I will look forward to
use gained skill and knowledge in best possible way and will continue to work on their
improvement in future, in order to obtain personal and professional goals.

Sincerely,
Mansi Gupta
(03121201717)
BBA (G)
 Contents
EXECUTIVE SUMMARY
Chapter 1- Introduction
1.1 Introduction to used Car Industry
1.2 Market Overview
1.3 Objective of the study
1.4 Scope of the Study
1.5 Review of literature

Chapter 2 -Details of the Organization

2.1 Company Overview
2.2 Industry Overview SWOT Analysis
2.3 Competition Analysis

Chapter 3 -Working Methodology

3.1 Tasks to be performed
3.2 Detailed Analysis of the Task
3.2 Approach of performing Tasks
3.3 Final Conclusion of Tasks

Chapter 4- Process Analysis & Findings

4.1 Process Analysis

Chapter 5 -Conclusion & Learning Outcomes

5.1 Brief Description of Recommendations
5.2 Learning from the project
5.3 Limitation of the Project
5.4 Scope of further Work
5.5 Conclusion
5.6 References
 EXECUTIVE SUMMARY

Project Title: “Process of Operation Management in Cars24”

Duration: 8 weeks

Place of Work: Lucknow

Organization: Cars24

Company Guide: Mr. Himanshu Vyas, Territory Manager (UP), Operations

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. For years now, local businesses and mechanics were
the main sources of selling your used car other than selling it directly to someone known. Now
with big OEMs and online players jumping with zeal to organize a vastly disorganized sector, the
market has started to turn up for good.
India used car market is projected to reach over $ 66 billion by 2022, on the back of growing
population and rising urbanization in the country. Moreover, market growth is anticipated to
be driven by rising penetration of online platforms such as Cars24, Cardekho, OLX, Quikr,
etc., that enable used car dealers to boost their reach to a larger audience.

Selling a car is an extensive and uncertain process. One is never sure of their car’s real market
value. Listing online leads to more time consumption, multiple calls, random meetings, price
haggling etc. CARS24 makes selling a car an easy, fair and quick experience. We offer an
efficient and reliable way to car owners to sell their cars at the best price.

Assigned in Lucknow, my project title was “Process of Operation Management in Cars24”.

To fulfill this objective, I First tried to observe training and development session by
Mr. Himanshu Vyas. Later he gave me small projects in which I had to prepare sale kit and
delivery kit which were to be dispatched to the dealer who purchase cars from Cars24 for further
selling process, document verification, docket rating, handling logistics work which included
stocking in and stocking out of cars in inventory and maintenance of inventory, solving retail
queries and handling dealer grievances and providing actionable recommendations based on that.
My project main aim was to handle and learn overall documentation and logistic part of the
company.
So, regarding documentation I was assigned to:
 Verify documents
 Docket rating
 Maintaining and keeping records
 Preparing sale kit and delivery kit
And regarding logistics I was assigned to:
 Daily cycle count
 Sharing stock in stock out report
 Maintenance of inventory
 Maintain record for pick-up and delivery of cars
 Chapter 1
OVERVIEW OF THE INDUSTRY
Currently the pre-owned car market size is estimated at 1.5 million in India and it is growing.
The Indian pre-owned market is dominated by over 90 percent by the unorganized sector. This
comprises of nearly 60 percent of the deals, that are characterized by owner-to-owner (customer-
to customer) transactions, and another 30 percent through brokerage mediated by individual
brokers and car mechanics, etc. a miniscule 10 percent of the pre-owned car market is controlled
by organized sector. One area that worries pre-owned car purchaser is the authenticity of the car
in India, the equation between pre-owned cars and new cars is 1:1, that is, for every one new car
bought (1million units per year), a used car is sold, and the pre-owned car market is growing
faster, at the rate of 26 percent as compared to the 18 percent for the new car market. There is a
bigger pool of preowned cars, with more car models being launched and people who buy new
cars do not usually own it for long and tend to sell it off in two to three years. Pre-owned car
dealers provide the most affordable resources to the interested buyers.

The used car market has been in the Indian auto market for years, but due to risky and
unorganized nature of buying used cars without any warranty, and due to lack of certification of
used cars, the pre-owned car business has been unable to become a significant part of the auto
industry. From the last four years, with major car manufacturers entering into the pre-owned car
business in a big way in India, the competition between pre-owned cars and new cars has
reached its peak. Different car manufacturers have entered the preowned car business with
different objectives, and they have different marketing strategies and priorities in entering into
the pre-owned car business. Maruti Udyog Limited is the first car maker to enter into the pre-
owned car business in a more organized way with their “Maruti True Value” brand of outlets.

Growth in the used-cars market is between 3X and 4X of the growth in the new-cars market as
the number of vehicles in the used-cars market pool is much larger than the number of new cars
sold annually. The slowdown in the new car market hasn’t affected the consumer. Used-cars
sales crossed the 4-million-unit mark in FY19, with it being 1.2x the size of the new car market.
It is also poised to reach between 6. 7 to 7.2 million cars per year by FY22, according to the third
edition of the ‘India Pre-owned Car Market Report’. Used-cars market per
se, as the consumer of used cars is slightly different from that of the new car’s

There are various reasons behind the entry of car makers into pre-owned car business like;
attractive exchange offers, by exchanging used cars for a new car model. Resale value for an
example, MUL’s Wagon R, Alto and Swift are the top used car brands in India for their high
resale value, which in turn leads to an increased demand of new car sales due to its brand value.
Another reason is Customer Retention, a market leader can retain their loyal customers through
an exchange program. Car manufacturers especially who are market leaders in a specific segment
can win back their lost customers by exchanging new cars of their company brand for used cars
of other competitor brands. Support of commercial Banks is another factor through which the
dealers get attracted towards the pre-owned car sector, support and collaboration with
commercial banks for used car business has also motivated car makers to enter into the used car
market. Commercial banks are providing loans up to 60%-90% of the used car value.
Competitive Strategy; it is another reason as a majority of the car makers are entering the
preowned car market, so every car maker wants its presence for this strategic reason.

Reasons for the Boom in the Pre-owned Car business in India

Major factors for boom in the pre-owned car business in India are as follows:
• Frequent introduction of new models of cars by most of the competing Indian and global car
makers in India is approximately 25 models yearly. It leads to frequent changing of cars by the
existing car owners.

• Decreasing prices and aggressive sales promotions of various car makers motivate existing car
owners to sell their used cars and acquire new cars.

• Entry of global car makers into the Indian car industry and increasing competition in the
domestic market created a huge resource of pre-owned and new cars.
• Most of the car makers want to enhance the residual value or resale value of their car brands by
providing higher prices in the preowned car market by exchange programs. Higher pre-owned
car prices generally increase the sale of new cars.

• Demand for pre-owned cars, especially small cars, has increased from owners of two-wheelers,
who want to upgrade from two wheelers to cars.

• For most of the new car dealers, selling a pre-owned car can get a profit of 10 percent to 20
percent minimum, whereas, by selling a new car, they can get a maximum of 2% to 5% profit
margin. This makes the new car dealers to enter into the pre-owned car market.

• Increasing income of middle-class families in India is one of the major reasons for growing
demand for new and pre-owned car over a new car.

• Boom in the real estate market has created few high-income groups from the last five years and
demand for mid-size and premium cars has increased.

• Upgrading to new models of cars from the pre-owned car market is convenient and cost
effective for majority of the middle-class customers.

• Maintenance cost of used cars for existing car owners usually increases after three to four
years, so frequent replacement of used car has increased by the existing car owners.

• Change in lifestyle of most of the people in urban areas – for transportation and travel, they
prefer a car rather than travelling by a two-wheeler or using public transport.
So, what has led to this surprising rise of the Indian used car
industry? Let’s have a look!

1. Lowering of Customer Anxiety Towards the POC (Pre-Owned Car)

Segment
The biggest hurdle for the POC industry that it has managed to breach is in terms of breaking off
the taboo regarding used car purchase. No longer do people feel shy of buying a used car and it
has now become more acceptable in the society.

With the greater participation of big and reputed OEMs with their own POC ventures and the
advent of online players, the used car purchases have become much easier and transparent.
Customers feel more confident in transacting in used cars and the rising numbers prove that it is
working.

2.Shorter Car Ownership Periods

Over the years, the ownership period of new cars has gone down considerably. No longer do
customers like to keep their new cars for ages with them.

The ownership period has come down to around 4 years for mass-market cars and below 3 years
in the premium car segment. This is a drop of over 20% as compared to the average used car
ownership period of 5-6 years seen 3 years back.

This, in turn, has led to an exponential rise in the pre-owned car stocks all over the country.
These cars are comparatively still new (thanks to the improved quality of cars) and relevant to
people and are now available everywhere. This increase in supply means more options for
buyers.

3. Price Value Quotient:

In a price-conscious market such as India, it was a matter of time before a vast majority of
buyers started looking for good used car purchases.

For any person upgrading from a two-wheeler, it is always easier to buy a used car to learn
driving first. It will also help him experience car ownership for the first time.
Further, a typical new car depreciates by as much as 30% in the 1st year followed by another 5-
10% the next year. Thus, a person looking at purchasing a two-year-old used car will pay
approximately just 60-65% of the car’s new value.

4. Penetration into Smaller Towns

The used car industry is no more limited to bigger metro towns and state capitals. Both dealers
and organised players are now entering into smaller towns which make up for 50% of the used
car sales.

5.Ease and Transparency in POC Deals

As already discussed, OEMs and online retailers have brought transparency and clarity to this
highly unorganised segment. This has led to customers now feeling comfortable in going for a
used car deal. Services like warranty, refurbishment, and easy financing schemes are easily
available now. This has made investing into a used car, a hassle-free process.

6. Demand for Used Luxury Cars:

With the premium used car market gaining more and more newer cars, buyers are ending up
getting themselves that extra luxury, comfort, and prestige. With many premium car OEMs
having their own POC divisions, used luxury car market is seeing an unprecedented growth.
High depreciation values further mean that buying a used luxury car is no more a huge dent on
the pocket.
 Market Overview

The Indian used car market was valued at USD 21.04 million in 2018 and is expected to register
a CAGR of 15.12%, during the forecast period, 2019-2024

Over the years, the used car market has evolved in the country, with the growth of the organized
and semi-organized sector.

The pre-owned car or used car market crossed the 4 million units mark in FY 2018, which states
that used car market is 1.3 times of the new car market. One of the key growth drivers in the
market is the revision of the GST rate on used cars from 28% to 12 - 18%.

As the Indian auto-industry is entering the BS-VI era from April 2020, the value proposition of
the used car can grow stronger, as new cars are expected to become expensive due to additional
technology costs.
The used car sector in the country is expected to witness an increased demand in the coming
years, owing to factors, such as growth or advent in the online sector and growth of the
organized sector.

However, factors, such as standardized dealership experience, fair price experience, and high
financing cost for used cars, may hinder the growth of the used car market.

Some of the major players dominating the market are Olx, Mahindra First Choice Wheels,
Cars24, Maruti True Value, Hyundai H Promise, and Others (which include Quikr, Honda Auto
Terrace, Ford Assured, Toyota U-Trust, etc.)
1.3 OBJECTIVE OF THE STUDY
 To find out the reasons for entry of car makers in to the pre-owned car business in India
 To analyze the different marketing strategies of car makers in the pre-owned car business in
India.
 To study the nature of Indian pre-owned car industry.
 To know the reasons behind boom in the used car business in India
 To understand the before and after sales services provided by unorganized and organized pre-
owned car dealers

1.4 Scope of the Study

This study is an attempt to analyze the consumer buying behavior and preference towards the
usage of used cars and the Consumer search things for their need satisfaction. Also evaluation of
the used car markets organized and unorganized, how consumers react and respond towards used
car markets. So the scope of this study is to cover the full view of the customer and their
preference pattern and used car market

1.5 Review of literature

A used car can be much cheaper than its new counterpart. The depreciation is lesser and car
financing too can be obtained easily. A survey was conducted and it was revealed that the
demand for the used car market in India per year is 1.4 million cars (Carazoo 2012). India
represents one of the world’s largest car markets. Easy availability of finance, and rising income
levels are encouraging the launch of new car models which have been leading to a stupendous
growth of the industry for the past few years.

Besides, the entry of various international players has also had a positive impact on the used car
market. Thus, the demand for used cars is anticipated to continue to grow at a stupendous rate in
the future. Owners of used cars have an informational advantage over potential buyers with
respect to the quality of their vehicles. Owners of bad cars will try to sell them to unsuspecting
buyers while owners of good cars will hold on to theirs. Consequently, the quality of traded
automobiles should be sub-average

New car dealers (who sell both new and used cars) differ from used car dealers (who sell only
used cars) in the propensity to sell trade-ins on the wholesale market. Models of adverse
selection suggest that the dealer type that sells a higher proportion of its trade-ins on the
wholesale market will sell, on average, cars of higher quality and receive in return a higher price
Economic studies have shown that the prices of used cars decline with age at a constant
exponential rate
 CHAPTER 2
DETAILS OF THE ORGANISATION
2.1 Company Overview
The used car market in India is growing at a phenomenal pace and due to shorter car ownership
periods, price value quotient, penetration in smaller towns, demand for used luxury cars, and
reduced customer anxiety towards pre-owned car segment, it is turning out to be bigger than the
new car market.

As per the data by SIAM released in 2018, at nearly four million used cars, the market is 1.25

times bigger than the new car market that saw sales of 3.2 million units last financial year.

Also, CRISIL in its report stated that almost two in every three cars sold in the country are used

cars, projecting that the Indian used car market will continue growing at a steady pace of 15% till

2020.

THE ORGANIZATION
Founded by Vikram Chopra and Mehul Agrawal, Cars24 now 150+ branches strong, all over

India.Cars24 buys all kinds of cars, be it premium or lower end, from tier 2-3 and even if the car

has a loan against it. The company aims at tapping the market to its optimum and capture 10%

market share of the pre-owned car market by 2022

Selling a car is an extensive and uncertain process. One is never sure of their car’s real market

value. Listing online leads to more time consumption, multiple calls, random meetings, price

haggling etc. Cars24 makes selling a car an easy, fair and quick experience. We offer an

efficient and reliable way to car owners to sell their cars at the best price.

At CARS24 we make selling a car easy, swift, fair and quick experience. As the largest auto-tech

company in this industrial domain, we offer an extremely efficient and reliable way to car

owners to sell their vehicle at the fair market price.

Currently, selling a car is a time consuming and laborious process as it takes several weeks of
interacting with strangers, allowing test rides and haggling for price. CARS24 has changed this
forever. Now, the owner can sell the car in less than two hours by just driving down to
the nearest CARS24 branch. CARS24 transfers the payment instantly into the seller’s bank
account and also takes complete responsibility of all the paperwork, including RC transfer.

Company’s Vision

Values and ethics of a company define how organized and structured an organization is. As a
company, we have our own set of values that we believe in and abide by.

Ownership
We don’t want our employees to be managed, but we want them to take control. At CARS24, we
believe that a great workplace is defined not by the founders or top management but, by the
number of ‘owners’ in the organization.

Investing in Employees and Partners

We don’t want to raise capital, but to raise our people and partners. At CARS24 we don’t think
of our success in just profitability and IPO but, in making our employees & partners super
successful in life. We believe in the maximum, ‘Give a man a fish and you feed him for a day;
teach a man to fish and you feed him for a lifetime’.

High standards and high results

We don’t settle for less, instead, we focus on more. At CARS24, we don’t gloat in what has been
achieved but, focus on doing them even better

Meritocracy
We won’t let exceptional performance go unrewarded; our aspirations are bigger than they
appear at CARS24, we don’t think of meritocracy as a ‘cut-throat’ phenomenon’; that there is
only a ‘fixed’ number of opportunities but, we believe that larger the number of talented people,
the more we can dream and accomplish in all regards.
Trust
We won’t get successful until there is a strong and deep trust with each and every stakeholder. At
CARS24, we don’t think we do everything today to say we are extremely trustworthy but, we are
aware this is a key tenet of what we do, and we work hard with committed goals and timelines to
ensure we are ever-improving.

Frugality
We don’t try to be penny wise, pound foolish but, we won’t spend when it doesn’t ‘add value'.
At CARS24, we believe that a great workplace is not the ones with fanciest offices, biggest
parties, and free food, but, the one that makes real & healthy profits as first priority over
everything else.

Long Term
In our minds, we are clear that doing the best work of our lives will be a very long journey. At
CARS24, we believe that we will succeed not just by achieving quarterly/ yearly milestones but,
knowing that those milestones were achieved without zero compromises on our long-term plan

Company’s Mission
Founded in 2015, CARS24's mission is to revolutionise the way used cars are sold in India. We
offer an efficient and reliable way to car owners to sell their cars at the best price. Since our
inception, we have come a long way - from one office to 180 branches across 58 major cities in
India. CARS24 is defined by its people - the owners of the business! We are a team of
exceptionally driven, capable team solving a real consumer problem.
 How CARS24 Works
CARS24 is a modern-solution for the age-old problem of selling used cars.
Here’s how we operate, one step at a time!
In parallel, the company uses technology to sell these cars to their partners all across India. This

has made CARS24’s business a unique C2B model, focused on ‘supply first’, and in principal a

very different approach to winning the used car market, as compared to the C2C and B2C

business models that exist in the used car industry today.

Meanwhile, CARS24 is helping dealers grow their business, assisting them with financing and

organise a fragmented market. They are connecting supply to demand by organising the supply

side of things. Cars24 has address both the Individual Car Owners and Pre-Owned car dealers by

creating and delivering value proposition of Instant Valuation, free Inspection of cars, Instant

Payment and support for the RC transfer and made the process Quick, Simple, Convenient &

efficient for both Car Owners and Car Dealers.

Brief understanding of CARS24 existing Business Model Canvas

This is How CARS24 made the journey easy, quick and effective and
creating value to their customers
Individuals want to sell their Used car and they have an option to sell it either to Car Dealer or
other Individuals. Cars24 is currently facilitating the process of selling the cars to Dealer. Once
Car Dealer procure car from CARS24, they will be reselling these cars to Individuals. We at
CARS24 believe in changing the way people sell their cars in India by simplifying and
standardizing the entire process. We buy your car and sell it to one of our 10,000+ channel
partners across various cities in India.

This is the area of opportunity for CARS24 to complete the life cycle and helps them to reach
untapped market.
At CARS24, we ensure that the entire process of selling used cars is a matter of hours, and the
customer leaves the branch keeping intact all the happy memories of his old car. 

Cars24 buy your car at the right price

After a comprehensive car inspection, you receive used car valuation and thousands of our
channel partners compete with each other to give you the right price of your car. 

Cars24 buy your car in a single visit

With us, you need not worry about multiple negotiation meetings and last-minute worries. Once
you book an appointment, all you need to do is go to our branch, get the right price of your car
through car inspection and sell it to our channel partner. This process takes just one visit. 

Receive instant payment

Once you've agreed to sell your used car, and our channel partner agrees to buy, you receive
payment instantly in your bank account. Our primary focus is to let you sell your car in the most
efficient way. 

Free RC transfer
Once you've decided to give away your car, no need to worry about the transfer of the
ownership. We take care of it. You will also receive the RC transfer status from our team.

CARS24 Customer Protection Policy

CARS24 Customer Protection Policy is an exclusive programme by CARS24 to protect the

customer from any unwarranted post-sale situations. Till the car’s Registration Certificate (RC)
is transferred in the name of the new owner, we will take care of any hassles related to the car.

Ready Assistance and information

At every step till the RC of the vehicle is transferred to the new owner, we are there to help!

Full Legal Support

In the rarest of the rare scenario where there is an issue with the vehicle while the transfer is in
process.

Cover of ₹ 5 lakh*
For any expenses incurred due to an accident or untoward incident with the vehicle, we offer
cover of 5 lakh.
2.2 Industry Overview SWOT Analysis

SWOT analysis on CARS24 to Understand their Strengths & Weaknesses and to Identify
Opportunities that CARS24 can explore & Pursue to be market leader in pre-owned car industry.
2.3 Competition Analysis
TOP COMPETITORS OR ALTERNATIVES
TOP COMPETITORS OR ALTERNATIVES

1. CarDekho

CarDekho is the top competitor of CARS24. CarDekho was founded in 2008, and its
headquarters is in Jaipur, Rajasthan. Like CARS24, CarDekho also operates in the
Application Software field. CarDekho has 1,045 more employees than CARS24.

2. CarTrade

CarTrade is seen as one of CARS24's top competitors. CarTrade was founded in Mumbai,
Maharashtra} in 2009. Like CARS24, CarTrade also works within the Application Software
field. Compared to CARS24, CarTrade generates $234.8M less revenue.

3. Droom

Droom is CARS24's #3 rival. Droom's headquarters is in New Delhi, Delhi, and was founded
in 2014. Like CARS24, Droom also operates in the Application Software sector. Droom
generates 17% of CARS24's revenue.
 Chapter 3
WORKING METHODOLOGY
3.1 Tasks to be performed
Three major steps involved in the operation management of Cars24

DOCUMENTATIO POST SALE

LOGISTICS MANAGEMENT
N

LOGISTICS

After you sell your car to Cars24, the car is looked after by the logistics team. The logistics team
play a major role in maintenance of inventory, pick up and delivery of cars and daily cycle count
of cars in inventory. All the car maintenance work is looked after by the logistics team of
Cars24. However, this process consists of various functions that have to be properly managed to
bring effectiveness and efficiency to the supply chain of the organization.

1. Order processing
It is an important task in functions of logistics operations. The purchase order placed by
retail team is updated on the panel and logistics team then accepts the purchase request
for the pick-up of car from the retail store to the parking place.
2. Pick up and Stock in
After the purchase request is accepted by the logistics team, the driver is assigned for the
pick-up of the car. An application is used “Locus” for tracking
the driver while he goes for the pick-up. When the pick up is
done and car is brought to the parking area and the car has to be
marked stock-in on the panel by the logistics team.

3. Inventory Control
Inventory management is one of the most important functions of logistics. Inventory
control includes daily count report and maintenance of cars in stock.

4. Delivery and Stock out

Delivery associate requests the delivery of the car to the dealer. The request is accepted
on the panel by the logistics team. The delivery is done in two ways, first is self-pick-up
and second is home delivery. In self-pick-up the dealer comes to the store and takes the
car with himself from the store. Whereas in home delivery the company delivers the car
to the dealer by the in-house driver. The car is safely delivered to the dealer and if
anything happens in transit, the company will be responsible. When the car is ready for
GFD (Go for Delivery) the car has to be marked stock out on the panel. Along with the
GFD delivery kit is also prepared which is sent to the dealer. Delivery kit contains the
following documents
 Original RC
 Insurance
 Duplicate key
 Bank NOC/Form 35
 DOCUMENTATION
It is imperative to transfer vehicle ownership immediately after its sale. Luckily, selling your car
through CARS24 takes this responsibility off your shoulders as we transfer car ownership on
your behalf for free!

What Are the Documents Required to Sell A Car?

Documents Required to Sell A Car

INDIVIDUAL DOCUMENTS REQUIRED TO SELL A CAR

PAN Card One Self-Attested Copy

Address Proof One Self-Attested Copy

Passport Size Photographs Two Self-Attested Copies

RTO DOCUMENTS REQUIRED TO SELL A CAR

Form 28 Three Copies with Chassis Imprint

Form 29 Two Copies

Form 30 Two Copies

Form 35 and NOC One Copy with Bank Stamp on Form 35

Sale Affidavit One Copy

Clearance Certificate One Copy

CAR DOCUMENTS REQUIRED TO SELL A CAR

RC Mandatory

PUC Mandatory

Insurance Mandatory

Application of Insurance Transfer Only required if insurance is to be transferred to the buyer

Invoice of The Car Only required if there is mismatch in the RC details

Ownership Manual –

Duplicate Car Keys –

Now that you have an idea about all the documents that you will need while selling your car,
let’s deep dive into it. All the documents can broadly be classified into three categories:

 Individual Documents
 Car Documents
 RTO Documents

A). Individual Documents Required to Sell A Car

1. One Self Attested Copy of PAN Card (Mandatory)

One self-attested copy of PAN card is mandatory.

“If you have never got your PAN Card made, you can anytime provide form60 to the buyer”.

2. One Self Attested Copy of Address Proof (Mandatory)

One self-attested copy of the Address Proof of the owner of the car is mandatory in most cities.
The documents that can act as your address proof can be:

 Aadhar Card
 Voter ID Card
 Passport
 Ration Card
 Any other document authorized by Govt of India.
 Rent agreement and electricity bill are also allowed in some selected states.

3. Two Self Attested Photographs (Mandatory)

You will need at least two self-attested passport size photographs.

B). Car Documents Required to Sell A Car

1. RC (Mandatory)

The registration certificate, commonly known as the RC is the proof of your vehicle being
registered under the government of India.  You need to have it without any defects, misprints and
misspellings or else you can’t transfer the ownership of the car. In case your RC has been lost or
is stolen, you would need to file a FIR. You can, however, fill the RTO form 26 and apply for a
duplicate RC.
2. Insurance (Mandatory)

You need not have an Insurance policy while you plan to sell a car, but it is a must when you
have to transfer the vehicle from one person to another. The importance of insurance is not just
to abide by the law but it also covers the vehicle damage and provides accidental claims. 

3. PUC (Mandatory)

Commonly known as pollution under control certificate, it is important as it certifies that the
emissions of toxic chemicals from your vehicle are under control. It is given on the basis of
smoke and emission tests for petrol, diesel and CNG vehicles whereas the battery-operated
vehicles are exempted from this test. You can get your PUC test done at any authorized testing
centre or at the authorized petrol pumps.

4. Invoice of The Car (Optional)

It is the invoice that is handed over by the outlet/ car dealership from whom you bought your
car. It is mandatory if there is any mismatch in the RC details with the actual vehicle details.

5. Duplicate Car Keys (Optional)

Duplicate car keys are not mandatory when it comes to selling your car.

C). RTO Forms/ Documents Required to Sell Your Car

You can download the RTO forms online or you can buy them offline too. But you need to visit
the RTO to submit all the forms. This can be a time-consuming and tiring task.

1. Form 28 (Three Copies)

This RTO form is used to take no objection certificate from the registering authority. It also
proves that you don’t hold any liabilities and encumbrances that can stop you from selling your
car.
2. Form 29 (Two Copies)

This RTO application is used to intimate the RTO that the vehicle has been sold by the owner.
You would be needing two copies of this form. Form 29 claims that all the car related
documents such as RC, insurance, PUC have been handed over to the buyer.

3. Form 30 (Two Copies)

Form 30 acts as a confirmation of form 29. After intimating the RTO about the selling, it is
your responsibility to intimate the RTO that the vehicle ownership transfer needs to done. Form
30 states that all the legal bonds and responsibilities you had with your car are now being
transferred to the buyer of your car including the consent of financier (if any).

4. Sale Affidavit

This is a document made in the name of the car buyer and the public notary attests it. It is an
agreement of transfer of all liabilities of the vehicle to the buyer. After the date of signing this
agreement and once the RC is transferred to the end buyer, all the risks associated with the
vehicle are also transferred to the buyer. This document can act as a proof that you have handed
over the vehicle to the buyer.

5. Clearance Certificate
This is an application on a plain sheet stating that the car has been sold with the credentials of
the buyer, seller and the details of the car.

6. In case of a financed car

If you have a financed car, you would need NOC from your bank and Form 35 to get the car
transferred in the name of the end buyer. This will remove the “HP” from your RC. HP here
stands for hypothecation which means your car is financed. Once your car is financed, HP is
written on your RC till you clear all your finances.
 Documentation Process

VERIFICATION OF
DOCUMENTS

DOCKET RATING

MAINTAING AND
KEEPING OF RECORDS

1. Verification of Documents
The documents received by the operation team has to be verified properly whether all the
documents are original or not. All the important documents that are essential for transfer
of car must be available.

2. Document Rating
To check & audit, complete set of docket and mark pendency / discrepancy if found
in docket on panel & assign ratings as per SOP’s and give file no. to docket.
 ❖ Type of discrepancies, where assign rating 1 if found in docket –

1 Seller Photo/Image / Not Available or Not Clear Found

2 Seller PAN Card/Form 60 / Not Available or Not Clear Found

3 Seller Address Proof / Not Available or Not Clear Found

4 Seller Second Address Proof (Req. in HR No. Car Only)

5 Third Party Consent Letter/Signature Not Found

6 RC Address Proof Mismatch / Same City Address Proof Not Found

7 RC Address Mismatch Amount Not Hold (INR. 1500/-)

8 Cars24 Docs Not Found / Short Received

9 Original Copy of Insurance Not Received

10 RTO Forms 26/28/29/30 Not Found or Less Received

11 On RTO Forms - Seller Signature / Company Stamp wrong mentioned or Not

❖ Type of discrepancies, where assign rating 4.5 if found in docket –

1 Loan Close by Cars24 - NOC & Form 35 Not Received

2 Bank NOC & Form 35 Expired Received

3 Loan Closer provided by seller, soft copy on mail or in hard copy

4 Four Closer with deposit slip

❖ Type of discrepancies, where assign rating 5 if found in docket –

1 All Docs Received with No Discrepancy/Pendency Found

3. Maintenance and keeping of records

After getting all docket’s rating done by docket rating team, submit all dockets to
record room to keep and maintain each docket in particular cell.
 POST SALE MANAGEMENT

Upload End Buyer ID

Verification of End
Buyer ID

Preparation of Sale
Kit

Party Peshi

Verify the
Transfership on
Vahan Website

1. Upload of End Buyer ID

When the dealer purchases the car from Cars24 for the further selling process, he has to
upload the ID of the end buyer i.e. the customer who purchases car from the dealer on the
mobile application called Cars24 channel partner app. ID must include address proof of the
end buyer.

2. Verification of End buyer id

The end buyer ID uploaded by the dealer is verified by the operation team on the panel.
3. Preparation of Sale Kit
When the car is ready to be sold to end buyer the operation team then prepares the sale kit
which contains all the necessary documents and dispatches it to the dealer. Sale kit contains
the following documents which are necessary for transfer of ownership of the car:
 RTO kit (Form 28, 29 and 30)
 Owner’s KYC
 Sale affidavit
 Clearance certificate
 Application for Insurance Transfer

4. Party Peshi
Party peshi is a law in the state of UP, where the owner of the car and the buyer of the
car visit the RTO once (along with their agent) for party peshi. Party peshi is basically a
formality where owner has to sign on some documents in front of the RTO authority to
confirm the RTO that the vehicle has been sold by the owner willingly. For party peshi, the
dealer raises the ticket on the portal called “Tesla”. Central team then coordinates with the
owner of the car and the dealer for their presence at RTO for party peshi.

5. Transfer of Vehicle Ownership

Some RTOs claim that transfer of vehicle ownership takes place in 7 days, but the usual
turnaround time for the RC transfer is 21 to 30 days and it varies from RTO to RTO.
Once you sell your car, it is important to find out if the RC has been transferred or not since
legally you are still liable for the vehicle. Vahan check can tell you about the ownership
transfer.
You can check your RC transfer status on Parivahan website by GOI. In case vahan site is
not working, alternate method to check vehicle details including hypothecation status is by
SMS.
 CHAPTER 4
PROCESS ANALYSIS
4.1 Process Analysis
We have understood the operation process of Cars24 as the rational breakdown of it into
different phases, which incorporates a series of logically linked routine activities, with the aim of
achieving and maintaining the process excellence.
CARS24 has simplified the process of used car transactions. Even after selling the
car, getting complete payment and ensuring RC transfer are major pain points for
every seller out there. Hence CARS24 offer instant payment and free RC transfer
once the car is sold.
For making car selling a smooth and hassle-free process the customer is required to have all the
necessary documents related to car selling. There are cases when customer is unable to submit all
the required documents and in those cases operation team helps the customer to undergo hassle
free process of car selling. To avoid any kind of hassle we take of your all documents.
There are few necessary documents which are not available during the car selling process, hence
cars24 takes care of that as well. Let us have a look at the cases and the documents and their
solutions:

1. Registration Certificate (RC)

You need to have RC without any defects, misprints and misspellings or else you can’t
transfer the ownership of the car. In case your RC has been lost or is stolen, you would need
to file a FIR. You can, however, fill the RTO Form 26 and apply for a duplicate RC.
2. Insurance
You need to produce Insurance policy as the person or the business buying a car will offer
you a better price for your car. However, you do have an option to sell your car without
insurance. If you chose to sell your car without insurance, it drops down your car’s resale
value by a considerable amount.
3. Duplicate Car Keys
If absent, they will drop the resale value of your car.
4. PAN Card 
If you have never got your PAN Card made, you can anytime provide FORM 60 to the
buyer.
5. Bank NOC/ Form35
To remove hypothecation, you don’t have to hand over the RC to the bank. The
document you would need here is your loan closure letter. Usually, the banks send the
NOC letter to your registered address. If in case customer is unable to get the NOC,
operation team helps the customer by issuing their bank NOC on their behalf.
6.  Selling your vehicle in the new state
If you want to sell your vehicle that is registered in a different state, you would need
to submit the NOC to the new state RTO along with the road tax receipt. If anyone of the
above is missing, you can’t sell your vehicle in the new state. After submitting these, the
process is pretty much like selling a normal car and all documents required to sell a
car are also the same.
 CHAPTER 5
CONCLUSION & LEARNING OUTCOME
5.1 Brief Description of Recommendations
Currently competitors like olx are also adopting the current Cars24 business model which
minimizes the competitive advantage of First to market of CARS24 and CARS24 has to
create and deliver additional value to both Individuals and Car dealers during selling or
buying of pre-owned car process.

Recommendation-

 Cars24 is providing customer hassle free smooth car transfer process. There’s a lot of

paperwork which operation team has to handle, hence there is more burden of work on

employees. Therefore, company should hire more employees for the same.

 There must be a standard operating process.

 Due to incomplete documents provided by the customer company faces problem in

transferring the car. The Retail Manager/Associate must follow up with customer for

providing complete documents.

 Dealers are not able to receive the documents on time due to incomplete documents given

by customer.

 For party peshi there must be proper coordination between the owner and the buyer to be

present at RTO for the same.

5.2 Learning from the project

 Operation team makes car selling easier for customer.

 Follow up with retail manager and retail associates for missing documents from

customer’s end.

 Process analysis was helpful for understanding the car transfer process

 Perform many tasks, problem handling and dealing with dealers

5.3 Limitation of the Project
There is some limitation during the project we notice

 Timely party peshi was not possible.

 There is no standard operating process

 Customer is unable to provide all necessary documents

 Dealers are not very satisfied with Cars24 services due to delay in delivery of documents.

 Limited choice of cars without any standard price.

5.4 Future Scope

Within three years of commencing operations, CARS24 has bought over 100,000 cars across its
branches till 2018. It has grown rapidly to become a leading player in the Indian used car sector.
Over 10,000 trusted business partners from more than 100 cities across India are already
participating in the proprietary online auctions.

Cars24 an NBFC License from the RBI and will be venturing into the consumer lending
business.

The company will be launching services in Delhi, Mumbai and Bangalore in August 2019 and
will scale up to the other cities gradually. Through this business, CARS24 looks to facilitate
vehicle loans to customers as well as finance channel partners to help them expand business.
While customers will be eligible for credit based on the car value they are buying, channel
partners will be eligible to credit as high as Rs 1 crore, depending upon their requirement.

The company is planning to hire over 200 people for its newly launched arm and is targeting
loan disbursement worth $25 million within the maiden year of its launch. It will also allow
consumers to sell their cars to CARS24 at any time in future to pay back the loan.

At present, the platform operates in more than 35 cities with more than 150 branches. The
company intends to scale up its presence in more than 300 Indian Tier-II, III and IV markets by
2021.
5.5 Conclusion

With the strength of 4000+ partnered dealers, spread across 136+ locations in 27 cities CARS24
sold 50000+ units are last one year which is 1.3% of market size (Market size of pre-owned cars
is 3.6M units per year). Currently CARS24 is facilitating Partnered dealers only with buying the
cars and CARS24 partnered dealers are depending on the competitors of CARS24 like Olx, Quikr,
Car-wale etc. and their showrooms for reselling the cars they procured from CARS24 & other
sources. If Cars24 can facilitate their partnered dealers to sell the cars by leveraging existing
CARS24 platform it will increase revenue of CARS24, increases its market share and also
reduces the dependency of the partnered dealers on the competitors of CARS24 and helps to
increase ROI of CAR dealer by reducing sale time.
Currently competitors like olx are also adopting the current Cars24 business model which
minimizes the competitive advantage of First to market of CARS24 and CARS24 has to create
and deliver additional value to both Individuals and Car dealers during selling or buying of pre-
owned car process.
In the concluding remarks I would like to say that that my training at Cars24 was of great help.
The gains of the project will for sure help me when I’ll be going in a corporate world as a
glimpse of corporate, I had seen her. I worked with the true spirit and with all the dedication
towards the task which had been given to me, it was a golden opportunity for me to learn under
the guidance of my industry mentor Mr. Himanshu Vyas. There are three great essentials to
achieve anything worthier hard work, stick-to-itiveness and common sense and keeping in mind
these points I had started my work and had completed my project.
5.6 References

www.cars24.com

www.mordorintelligence.com

www.moneycontrol.com

www.worldwidejournals.com