With the used car business and fleet operators witnessing more organised players, there is a strong demand for after-sales and service support. And this is the segment that potential that Gurgaon-based Vehicle Care aims to tap into in the auto sector. The start-up was set up in 2017 and comprises four co-founders including Amit Yadav, Arvind Verma, Inder Vikram Jit and Alok Srivastava. Speaking to carandbike recently, Arvind Verma elaborated on Vehicle Care plans and what makes them different from similar players in the segment.
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Vehicle Care partners with local garages to expand its network across the country
Vehicle Care is a tech-driven multi-brand car service platform that offers a one-stop solution for all car owners. The brand caters to B2B and B2C customers but a larger chunk of its business comes from the former. The brand has tied up with pre-owned vehicle aggregators as well as insurance companies to service vehicles. The start-up says its services are more cost-competitive compared to a traditional OEM service centre by a good 40 per cent. At present, the company services about 3,000 vehicles per month that include mass-market and premium offerings.
Speaking to carandbike, Arvind Verma, founder - Vehicle Care, said, "We are trying to build an ecosystem in the aftermarket automotive space. Most other players are concerned about the end consumers which is the retail sector. But the major sector is the fleet side and the pre-owned selling car companies."
At present, the automotive service market is around Rs. 7,000 crore. The pre-owned vehicle market is expected to grow exponentially in India. As per a study by Indian Blue Book, the used car market will be 90 per cent larger than the new car market by FY2025. Sales in the pre-owned vehicle segment are estimated to be around 71 lakh units by then. The company it's witnessing a 50 per cent growth month-on-month.
Vehicle Care is preparing to address this massive demand by laying the groundwork. The company is currently operating in over 70 cities with more than 200 workshops in place. The expansion plan includes opening 400 outlets over the next couple of months. It has covered major Tier I cities including Delhi-NCR, Mumbai, Bengaluru, Hyderabad, among others. But the next wave will be from Tier II and III markets like Jaipur, Kanpur, Varanasi, Lucknow, Mathura, Kolhapur and more, where the company is already witnessing strong demand.
Arvind Verma says Vehicle Care operates on four pillars - affordability, availability, convenience and transparency
Verma explains, "We are doing about 3,000 vehicles per month. and post-Covid things are very good for the start-up. Due to some health reasons and fear factors, people are purchasing used cars. Our ideal customer is someone who owns the vehicle and services out of warranty from the OEM. The pre-owned market is growing at a very good space but the aftermarket segment is also growing at a very good space.
"Due to the internet generation, today's customers are well aware of the practices. In terms of transparency, we have a national-level parts procurement process and customers are made aware of what pats we are using, where are sourcing the parts. Apart from that, we have to follow the insurance companies' process and have to use only OEM parts in the repairs. We are seeing a 50 per cent growth month-on-month in 2021."
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Verma says that Vehicle Care operates on four pillars - affordability, availability, convenience and transparency. The team has a strength of 120 people and are headquartered in Gurgaon with regional offices and Bengaluru, Mumbai and Hyderabad.
The company will soon expand its operations to servicing two-wheelers as well, elaborates Verma. "We are currently doing pilot services in Delhi-NCR as of now. And by end of 2022, it will be available in all major Tier I and metro cities."
