The Used-Car Margin Gap
profitability
India-specific
Set in India; the figures and context are India’s.What this case is about
Your client, Second Gear Motors, is a used-car retailer operating in Tier I cities in India. It is profitable, but its margins are below those of its competitors, and the gap has existed since the business began. The client wants to understand what is driving the gap and how it can improve its margins.
Objective
Identify the operating drivers behind Second Gear Motors' lower margins and recommend practical, testable changes to sourcing and sales that can improve profitability.
Skills this case tests
Structuring the problem
Reading the data
Working the numbers
Judgement and recommendation
This is an interview practice scenario. Figures in the brief are case inputs, not current market research.