Cars24 Processes Over 1.1 Trillion AI Tokens In Q1, Boosts Transformation

CW Bureau ·

Used vehicle marketplace Cars24 has significantly accelerated its artificial intelligence (AI) transformation, processing more than 1.1 trillion AI tokens during the April-June 2026 quarter (Q1 FY27) as the company expands AI across engineering, customer engagement and core automotive operations.

The company said AI consumption has nearly tripled over the last two quarters, with AI-related spending now accounting for 8.88% of its central salary run-rate, compared with 2.17% two quarters ago. The shift reflects Cars24’s strategy of replacing manual workflows with AI-driven systems across its business.

AI adoption reaches nearly every employee
Cars24 said AI adoption has become nearly universal across the organisation, with 95% of employees using AI every week and 85% using it daily, including teams beyond engineering.

Within its engineering division, 89% of production code is now AI-assisted, while 99.4% of code reviews are AI-enabled. The company said these initiatives have helped increase average engineer productivity by three times, enabling faster product development and deployment.

Customer service powered by AI
The company continued expanding AI across customer-facing operations during the quarter.

Its AI platforms analysed 9.81 million customer conversations, while AI-powered voicebots handled 2.58 million connected conversation minutes, marking a 30.3% quarter-on-quarter increase.

AI chatbots processed more than 5.5 lakh customer requests, registering 128% sequential growth as conversational AI expanded across vehicle buying, selling and financing journeys.

The company added that nearly 20% of all customer interactions across its platform are now handled by AI, with AI voice agents delivering 95-105% of the conversion performance achieved by human calling teams.

AI transforms vehicle inspections and lending
Cars24 also reported rapid adoption of AI across its core automotive workflows.

Around 80% of all vehicle inspections, or 2.88 lakh inspections, were conducted using AI-led systems during the quarter, compared with 25% in the previous quarter and 10% two quarters earlier.

The AI-powered inspection platform, built on more than 20 proprietary computer vision models trained using over one million vehicle inspections, reduced average inspection time from 45 minutes to 26 minutes. The company said this enabled approximately 3.6 lakh AI-assisted inspections while saving nearly 91,000 inspector-hours.

In vehicle financing, 65% of loan disbursals, or 4,158 loans, were completed through AI-led processes, more than doubling from 30% in the previous quarter.

Automation drives operational efficiency
Cars24 expanded automation across its operations during Q1 FY27.

Its Document AI platform processed 8.5 lakh documents, representing 143% quarter-on-quarter growth, while its Agentic AI platform executed 5.71 million automated workflows, up 314% sequentially.

Across its retail hub network, AI completed 4.23 lakh operational validations, eliminating nearly 10 hours of manual work every day by automating attendance verification, operational checklists and vehicle slot validation.

The company’s AI infrastructure now comprises six proprietary platforms supporting more than 25 production AI use cases, including customer support, inspections, computer vision, lending, document intelligence and workflow automation.

During the quarter, 319 active AI workflows were supported by the Agentic AI platform, while more than 45 AI agents operated across customer support, CRM, WhatsApp and voice channels.

Cars24 also said its in-house imaging platform standardised 50,000 vehicle images every month, generating operational savings of more than ₹1 crore.

Unified AI platform under development
Cars24 Founder & CEO Vikram Chopra said, “AI is no longer improving isolated workflows; it is becoming the operating system of Cars24. Processing over one trillion AI tokens in a single quarter reflects the scale at which intelligence now powers every part of our business.”

He added that the company is building a unified AI layer that will connect buying, selling, financing and vehicle ownership services through a shared customer memory.

Leveraging 11 years of proprietary transaction, pricing, inspection and service data, Cars24 aims to create a single AI system capable of understanding customers across every interaction throughout the vehicle ownership lifecycle.