Bengaluru, Karnataka: 2nd June 2026. Cars24, India’s leading AI-native autotech platform, is expanding its footprint in Karnataka, which has emerged as one of the country’s most valuable and rapidly evolving used-car markets. Driven by a surging demand for premium vehicles, digital-first buying experiences, and comprehensive ownership services, Bengaluru remains a primary growth engine for the company.
This regional momentum coincides with a major national milestone for Cars24. The company recently reported its first profitable quarter, achieving ₹20 crore in Adjusted EBITDA in Q4 FY26, alongside ₹760 crore in Adjusted Net Revenue for H2 FY26—marking a 37% year-on-year increase.
Karnataka currently commands 10.4% of India’s used-car demand. Notably, the state leads the nation in average used-car transaction value at ₹4.31 lakh, reflecting a strong consumer preference for newer, feature-rich vehicles and shorter upgrade cycles. As one of India’s largest metro automotive hubs, Bengaluru continues to thrive on high digital adoption, rising financing penetration, and an increasing preference for organized, transparent buying experiences. The city’s massive base of tech-savvy professionals is driving demand for premium hatchbacks, SUVs, and newer model years, signaling a clear shift toward value-led upgrades over price-driven purchases.
Cars24’s regional growth mirrors its broader national transformation from a transactional vehicle platform into a full-stack car ownership ecosystem. Today, the platform helps consumers seamlessly manage financing, insurance, documentation, vehicle history, FASTag management, and resale. This comprehensive approach attracts over 3.8 crore monthly active users.
On a national level, Cars24’s Retail GMV grew by 35% year-on-year during H2 FY26, now accounting for over 60% of total transaction value. Reflecting deeper consumer engagement beyond the initial purchase, loan disbursals surged 57% year-on-year to ₹1,789 crore, while vehicle ownership services grew an impressive 11-fold. Furthermore, Karnataka is established as a frontrunner in green mobility; together with Maharashtra, the two states account for nearly 68% of all used electric vehicle (EV) purchases in India.
The company’s transition to profitability has been heavily supported by its AI-native operating model. In H2 FY26, revenue per employee increased by 50%. Core functions such as pricing, vehicle inspections, customer interactions, and risk assessment are now AI-led by default, driving operational efficiency and sustainable scaling.
Commenting on the growth, Shivanshu Makkar, CFO India, Cars24, stated: “Markets like Bengaluru are redefining what car ownership looks like in India. Customers today expect far more than a transaction; they want trust, convenience, and support throughout their ownership journey. Karnataka remains one of our most vital markets, and as we deepen our AI-native operating model, we see significant opportunities to further expand our presence across the state.”
Moving forward, Cars24 plans to strengthen its retail, financing, and ownership services footprint across Karnataka while continuously investing in AI capabilities to simplify every aspect of vehicle ownership.
