Auto verticals in emerging markets with low-trust environments have been focused on tackling fraud for years. To this end, c-to-b-to-c auto site Cars24 has launched a probability-based odometer-fraud detection tool in India.
An odometer (or odograph) is an instrument used for measuring the distance traveled by a vehicle. It indicates the mileage of a vehicle and thus plays an important role in determining the value of a used car. Cars24’s digital tool is based on a predictive model that helps buyers assess whether a used car may have undergone odometer tampering / rollback (a fairly common practice in emerging markets) and make an informed decision, according to Team-BHP, an auto forum acquired by Cars24 in April.
Cars24 says one-in-five used cars in India are odometer tampered, but it did not provide a source for this assertion. The new tool allows users to input the car’s registered number and generate a probability score indicative of odometer tampering. If the score is high, potential buyers are encouraged to verify the vehicle’s service history report, perform onboard diagnostics and conduct other due diligence measures.
Cars24 said: “The objective is not to give a final judgment but to spread awareness and empower users to double-check odometer integrity before making a purchase decision.”
In developed countries, car marketplaces often use data analysis via a vehicle identification number (VIN) to determine fraudulent activity, but these records are less organized and less reliable in developing countries.
Cars24 received $40 million from its Singapore-based parent, Global Car Group, in July and is gearing up for an IPO in the near future. As part of the pre-listing preparations, the company is downsizing loss-making entities and scaling promising services.
Also in July, Cars24 launched an after-sales program called Care+. This followed the shutdown of FourDoor — a subscription-based repair and maintenance service — and InSpare — a b-to-b spare parts delivery service. These closures led to more than 200 layoffs.
Additionally, Cars24 has expanded its non-core operations over recent months, launching Loans24 for auto and non-auto loans and insurance vertical Insure24.
Founded in 2015, Cars24 was initially a b-to-b marketplace before shifting to a c-to-b-to-c model. It reported INR69.1 billion ($785 million) in operating revenue for the 12 months to March 2024. The company also operates in Australia and the UAE.
