In a world where convenience and efficiency reign supreme, the traditional car-buying process was ripe for innovation. Enter Carpal, India’s pioneering online new car-buying platform, poised to disrupt the automotive industry with its customer-centric approach and cutting-edge solutions. This is the story of Mr. Vignesh Ramakrishnan, Co-Founder, Carpal, and his journey, marked by insights, adaptations, and a relentless pursuit of redefining the car purchasing experience in India. From humble beginnings to becoming a trailblazer in the digital automotive space, Carpal’s evolution showcases the power of innovation and the transformative potential of technology in an ever-changing market landscape. Raghul Sivaguru delves into the revolutionary journey of Carpal, shaping the future of car buying at one virtual showroom.
What Eureka moment made you start India’s first online new car buying platform, and which brands do you deal with in terms of sales and retail?
The uninteresting answer is that there was no single Eureka moment. Initially, we had a mobile app called Car Match, launched in 2015, where we worked with dealers to sell leads containing detailed customer preferences. However, the information often got lost in the chain of command, rendering it ineffective. We realized that to become sustainable, we needed to sell cars directly rather than just leads. This led to the rebranding of our app to Carpal, becoming a virtual dealership handling the entire process. Now, we function like a dealership but don’t invoice the cars, working with dealerships across Tamil Nadu and Karnataka.
Which cities does Carpal cater to? Do you see any cannibalization in terms of sales with various brands operating in the same segments?
Carpal caters to all of Tamil Nadu. As of last month, our sales ratio is 45% in Chennai and 55% in the rest of Tamil Nadu. Cannibalization does occur, as customers often consider multiple brands and models within the same segment. However, brands with strong loyalty in India include Honda, Volkswagen, and Skoda, whereas Hyundai and Kia have more transient customers.
Which segment of cars has the maximum footfall and inquiries among your existing or potential customer base? What services does Carpal offer to end customers?
Most of our sales come from the 15 to 40 lakhs segment, particularly SUVs. We offer end-to-end services, including getting the money, arranging the car, evaluating trade-ins, registration, and delivering the car to the customer’s doorstep. Banks recognize us as a dealer, allowing us to handle the entire process.
With waiting periods hitting a new high in the industry, how does Carpal address this issue?
Waiting periods are always fluctuating. Brands like Toyota may have higher waiting periods for certain models but easier availability for others. We address this issue by working with multiple dealerships and accessing their inventory, reducing waiting periods significantly. If there is a six-month waiting period in general, we aim to reduce it to 2.5-3 months through our B2B arrangements.
How do you work out the discounts applicable to a customer, irrespective of the model or brand they prefer? Do you provide any relevant suggestions on insurance add-ons or suitable accessories for their vehicle, depending on the variant?
We base discounts on the principle that too much inventory of one car leads to higher discounts to liquidate them. We follow market trends monthly and offer competitive pricing without attracting only deal hunters. We always provide full coverage insurance and suggest additional coverage if requested by the customer. We recommend genuine accessories and extended warranty plans, showing all options without pushing specific plans.
What is the preferred mode of purchase among modern-day customers? If it’s on finance, what is the timeline and initial payment model chosen by your customers?
Most customers opt for car loans, with some arranging their own financing. We work with multiple banks to find value for the customer. Most customers prefer maximum loan tenures with flexibility for part payments, ensuring cash flow and reducing debt when able.
Are you addressing first-time car buyers or existing car buyers? What is the average age of a first-time car buyer, as per your customer base?
We address both, but our initial customers were mostly existing car buyers. First-time car buyers joined later as they gained confidence in our brand through online research. We have customers aged 20-24, but the actual car owners are often older, with younger customers convincing their parents or family to buy through us.
With some brands offering the option to book their cars online and providing virtual experiences with car configurators by 3D facilities, and a few brands present on e-commerce platforms, where does Carpal stand among this competitive space?
The market trend is shifting towards Direct to Customer (D2C) models, where brands bill the customer directly and ship the car from the plant. Carpal integrates with these brands for D2C business, providing customers with fresh cars delivered directly. This trend is growing as it allows brands to reach customers in regions where dealerships are not feasible.
Are the brands today aware of the importance of test drives? Are they able to arrange for a specific model and configuration for a test drive, which is requested by the customer?
Yes, test drives are crucial for making a deal. We offer test drives for 9 days a month to give customers a feel for the car before booking it. While not all brands can provide specific colors or configurations, we ensure that customers get to test drive the model and transmission they are interested in, making the decision process smoother.
