At the vibrant stage of Startup Mahakumbh, where innovation meets opportunity, DriveX stood as an example of transformative entrepreneurship. Helmed by Narain Karthikeyan, India’s first Formula 1 driver and Founder of DriveX, the company is revolutionizing the pre-owned two-wheeler industry through AI-powered solutions and customer-centric strategies. In an exclusive conversation with Tech Achieve Media, Karthikeyan shed light on the inception of DriveX, the challenges it addresses in the broker-driven used bike market, and its ambitious plans to redefine mobility in India. This interview unveils how DriveX is not just bridging market gaps but setting a new benchmark in the industry.
TAM: Could you give us an overview of DriveX? What were some of the market gaps that led to the introduction of DriveX?
Narain Karthikeyan: As with any pre-owned business, customers face numerous challenges. In our case, we noticed that the market was highly broker-driven, thriving but with many dissatisfied customers. Post-COVID, the demand for affordable mobility increased as public transport usage declined. This prompted us to start onboarding pre-owned two-wheelers, initially focusing on a lease and subscription model in Chennai, Coimbatore, and Bangalore.
However, as people returned to regular work routines, especially in delivery services, they expressed a preference for buying the bikes instead of subscribing. Recognizing this shift, we ventured into retail. We discovered a significant gap in the refurb and retail market for used two-wheelers. Customers faced challenges such as high-interest rates from local financiers. To address this, we showcased the quality of our vehicles, which encouraged established finance companies to offer loans at competitive rates, as low as 10.5-11% based on customer profiles. This allowed us to introduce a new price point for two-wheelers, marketed as “as good as new.”
While there’s growing interest in EVs, we believe it will take considerable time for India to adopt them widely due to affordability, infrastructure, and charging concerns. Meanwhile, the pre-owned market for two-wheelers remains vast, with 25 million vehicles transacted annually. Our goal was to build a trustworthy B2C platform. We started small, with just two retail outlets, handling around 100 services and 30 retail sales per month.
We gained early investment support from Singapore-based investors, followed by TVS Motor Company in 2022. With this backing, we expanded our team and operations, focusing on Tamil Nadu, Karnataka, and parts of NCR. To ensure quality, we established our own refurb center, as third-party refurbishment didn’t meet our standards.
In December 2024, TVS Motor Company increased its stake, making us a subsidiary. The journey has been both challenging and rewarding, largely thanks to our passionate and skilled team. While we lacked a tech or digital background, our expertise in automotive helped us build a unique platform. Today, we are proud to be the only manufacturer-backed platform at this scale in the two-wheeler space, setting a new standard in the industry.
TAM: DriveX recently launched an AI-powered self-inspection tool. What prompted the need for this innovation? What challenges do buyers and sellers typically face that this tool aims to address? And how does it improve upon traditional evaluation methods?
Narain Karthikeyan: From a customer-facing app perspective, we’ve been pioneers in the used two-wheeler space. The app provides customers with a clear understanding of their bike’s value and insights on what can be done to enhance it. This initial customer engagement is crucial for us. Currently, with the help of machine learning, we’ve achieved about 90% accuracy. As more users engage with the app, the system continues to improve, refining its accuracy with the additional data. This has become a key point of interaction, and we’re seeing significant traction with the app now.
On the procurement side, our on-ground technicians use a dedicated procurement app. After 18 months of development and numerous iterations, we’ve reached a sweet spot. Procurement is a critical aspect of our business—buying the wrong vehicle can wipe out the profits of 10 others. As a startup, while we’re allowed to make mistakes, we’re mindful not to repeat them, as they can be costly. We approach everything with prudence and maintain a frugal mindset to ensure we make the most of our resources.
TAM: The demand for these vehicles is increasing in Tier 2 and Tier 3 cities, while it’s declining in Tier 1 cities. Do you foresee any challenges with scaling technology like this in Tier 2 and Tier 3 cities, given the varying levels of digital adoption in those areas?
Narain Karthikeyan: As you rightly mentioned, customers in Tier 2 and Tier 3 cities are very aspirational. They want to upgrade to better bikes with good quality and features. However, when it comes to platforms dealing with unit sizes averaging over Rs 50,000, the buying process in India is still heavily influenced by the “touch and feel” factor.
Typically, customers discover the bikes online, but they often visit in person to make the final decision. They might say, “I like this other color” or “I prefer a different model.” It’s also often a family buying experience, adding to the uniqueness of the Indian market. The challenges here are distinct, and satisfying these customers is crucial for us to scale and become a truly pan-India platform. Addressing these factors is essential to our growth and success.
TAM: What kind of support are you expecting from the government for this initiative? Considering that this is a novel idea, focused on two-wheelers, especially pre-owned ones, there’s currently nothing quite like it in India. What government support do you believe could help you scale your company to greater heights?
Narain Karthikeyan: The Motor Vehicles Act is quite clear, but its adoption across all states has been inconsistent. Some states are still in the process of implementing it. Once platforms like ours, which operate on a pan-India scale, see uniform adoption of this act, it will become much easier to do business.
Currently, processes like vehicle transfer remain complex and cumbersome. Simplifying these processes would bring greater transparency and authenticity to the industry, which is massive—about 25 million bikes annually. I believe that if states fully adopt the updated Motor Vehicles Act, passed in April 2023, it would address many of these challenges. While these difficulties persist, the ongoing move toward complete digitalization gives us hope that these issues will be resolved in time.
TAM: You have an ambitious goal of opening around 500 outlets across India by 2027. Do you also plan to venture into other segments beyond pre-owned vehicles? There’s a lot of curiosity about EVs, especially since first-hand EVs are quite expensive, costing around Rs 1.5 lakhs. Many people are hoping that pre-owned EVs will provide a more affordable alternative.
Narain Karthikeyan: We currently have a small division within our refurbishment center dedicated to repowering used EVs. However, this comes with significant challenges. Most EVs entering the second-hand market are built on older technology, often using Chinese components with inadequate battery management and thermal systems. Repowering these vehicles to achieve even 70–80% efficiency is currently very expensive.
That said, as newer models like Ather, TVS iQube, and Chetak begin to enter the second-hand market, there will be better opportunities for repowering. These models are built with more advanced technology, making it feasible to refurbish them for resale. If we can successfully repower and resell these vehicles, it could also help alleviate concerns around the residual value of EVs, ultimately driving greater adoption of new EVs. We believe that within the next 12 months, we’ll be able to establish a dedicated EV vertical focused on repowering used EVs and bringing them back into the market.
TAM: Final comments
Narain Karthikeyan: I firmly believe that used vehicles in India have a long lifespan, and we are focused on enhancing their efficiency and quality. Our ambitions are significant. With our growing retail touchpoints and the strong backing of a renowned manufacturer like TVS Motor Company, I believe we are well-positioned to achieve this target.
