The automotive industry is on a fast track in India, forging ahead to cover distant miles. With technology on its back to give the required push, the sector is unstoppable in its pursuit to establish its presence in different corners of the country.
Besides numerous on-demand assistance start-ups in India currently, auto finance is slowly picking up.Entrepreneur India enumerates the top four ways in which auto-finance start-ups are shaping up the car and bike industry.
Peer-to-peer Car Rentals
Peer-to-peer car rental is still a budding concept in the country. While car rental platforms like Zoomcar that allow users to take cars on rent is doing good, the concept of borrowing a car from another individual is still new in India.
Hyderabad-based start-up Ridengine claims to be India’s first P2P car and bike rental platform. They allow people to rent cars for others in their circle — be it friends or colleagues — thus doing away with the security and trust issues.
Lending the Required Down Payment
Mostly, when people buy a car they opt for a loan. This is followed by standing in the long queues outside banks. To meet the huge requirement, alternative lending platforms are offering loans to individuals as well as fleet owners. Platforms like IndiaLends offer auto-loans to its consumers.
You Are Covered
Car insurance is undoubtedly one of the biggest sectors of insurance. And where there’s such a huge market, start-ups cannot be far behind. Start-ups in the car insurance sector are all out to lure individuals with easy and affordable schemes. One of the successful start-ups in the segment is Coverfox. Having tied up with leading insurance companies in the country, the start-up even promises “superior car coverage with attractive premium”.
The Car Market
E-commerce in the auto-industry, too, has been a thriving space for start-ups. And the same when coupled with affordable finance solutions, becomes a great value addition for customers.
Many start-ups in the space are looking at comparing different rates before offering the best market rate to the user. Jaipur-based CarDekho is one such platform that lets its users get information on prices and specs of cars and also keep them abreast of latest news in the sector. Calling itself a leading car search venture, the start-up also has an option to buy used cars.
Second-Hand is the First Choice
Realizing that a big part of India’s population often goes for used cars, there are many start-ups that are creating a marketplace around the same. Right from building a network of used cars to ensuring the quality to their target customers, these start-ups also give clients to sell on their platform. Droom is one of the most well known start-ups in the space that allows the buying and selling of used cars. Another such start-up is Spinny.