One of the leading eCommerce platforms for pre-owned vehicles, CARS24 has revealed its plans to invest nearly $100 million in the UAE and wider GCC region.
According to CARS24, it will utilize the funding to build one of the largest and sophisticated refurbishment hubs in the region, which will also help in creating more job opportunities.
The company has exhibited exceptional performance in UAE since it launched in April, CARS24 was able to complete about 1000 plus car sales in the past five months. 100 percent of these transactions were conducted entirely online.
“We are delighted to deepen our roots in UAE, one of the most progressive and
technologically advanced nations in the world. Technology is at the heart of everything that we do at CARS24, and the country’s tech-focussed vision deeply resonates with us. The company aims to shoulder the government’s vision of creating a state-of-the-art technology ecosystem, by taking the entire car-buying process online. This we believe is the future. A significant portion of these funds, therefore, will also be directed towards scaling up the organization’s technological framework.”
Over the years, the CARS24 platform has made buying cars as simple as shopping for clothes or books online. A customer can easily browse through a wide range of cars on the platform, select, and book them, complete the full payment and documentation process, and get the car home delivered.
The cars on the platform undergo over 150 point inspection checks and are refurbished thoroughly. In addition, these vehicles go through a strict RTA test. Every car bought from CARS24 comes with a 7 days return policy and 2 years warranty.
Commenting on the company’s commitment towards the sector, Mr. Abhinav stated that, “UAE auto market is getting modernized and CARS24 is proud to say that it will continue to play a significant role in this transformation. We want to ensure that all the customers that purchase cars from us are completely at ease when they are making this investment online. We are present with them right through the journey and this relationship continues even after they have bought the car.”
“Today, we have a massive assortment of cars and more importantly, we own these cars. Looking at our past growth curve since May this year and with our current investment plans, CARS24 is well poised to scale an even higher growth trajectory by the end of 2021,” he further added.
The consumers in UAE are known to change their cars within 3 to 4 years on average as compared to the rest of the world, where people change cars every 8 to 9 years. Over the last few months, the platform has witnessed people replacing their cars with most customers intending to upgrade through the pre-owned car market.
“As per published reports, a major percentage of consumers in the UAE market still preferred Japanese and Korean brands followed by American and European cars. Sedan remains the preferred choice for a more affordable segment which is below $13,612. On the other hand, the demand for SUVs has grown much higher than pre-pandemic levels. Close to 40 percent of the market still remains under the $13,612 budget, while the $13,612 to $27,224 segment has grown and now accounts for a 30 percent share which is powered more by the demand for SUVs,” Mr. Abhinav noted.