Africar, an online car marketplace that operates in over 40 African countries, has partnered with Stellantis, the parent company of Maserati, Peugeot, Fiat, and Chrysler, among other brands, to launch Auto24, an African used car marketplace. Auto24 will begin operations in Ivory Coast, with Africar intending to expand the marketplace across the continent in the coming quarters and years.
With the African population expected to reach 1.7 billion by 2030 and a car park already at 50 million units, Stellantis has invested in Africar Group to launch Auto24 and capitalize on this market opportunity.
This investment is a new building block in Stellantis’ global strategy to expand its mobility solution portfolio and strengthen its commitment to customer-centricity. It is also an illustration of the Dare Forward 2030 plan in one of Stellantis’ seven accretive businesses.
The buying and selling of used cars, which is frequently fraught with issues on both sides of the transaction, is a process that Auto24 wants to digitize. Before accepting a car from a seller, the startup will inspect it thoroughly based on its 100 points of inspection, perform any necessary maintenance, and then provide a price.
“After more than five years of working with automotive manufacturers, distributors, and other key players in the industry, we have developed a class-leading, multi-country digital automotive solution across Sub-Saharan Africa,” said Axel PEYRIERE, co-Founder & CEO of Africar Group. Auto24 has been launched with the goal of increasing African customers’ trust in the used vehicle market. A fantastic challenge that will allow you to have a safe, convenient, trustworthy, and enjoyable experience buying or selling used vehicles.”
Peyriere refers to the startup’s pricing strategy as “a unique valuation system for Africa.” Based on data that Africar has gathered for more than six years, this system. Peyriere stated that Auto24 would process this data using artificial intelligence.
Auto24 wants to increase its customer base by providing distinctive services, so this pricing structure will be different from the rates provided by the typical car dealer. The startup will provide customers with a 5-day money-back guarantee, a 6-month powertrain, engine, and gearbox warranty, a 1-year roadside assistance package, and 1-year maintenance with AutoFast, CFAO’s servicing program.
“This investment in Africar Group to create Auto24, re-enforces our strategy to grow our used vehicle business activity globally in a bold, pragmatic, and agile way,” says Xavier Duchemin, Senior Vice President of Stellantis’ Pre-Owned Vehicles business unit. It will proceed according to the same plan as the other Stellantis investments in the ecosystem surrounding used cars. While leveraging Stellantis, the founders will quicken the growth of their initiatives while retaining the creativity, vigor, and adaptability that define start-up businesses.