Mahindra & Mahindra, one of India’s largest auto manufacturers is all set to enter the online marketplace with the launch of a portal to help people buy and sell used cars. According to a report published in Business Standard, the corporations used car retailing division Mahindra First Choice is all set to launch a virtual marketplace for used cars within a month.
The portal would be D2D (Dealer to Dealer) platform where registered dealers will participate in the sale and purchase of used vehicle, however later the platform will be extended to end consumer, said the report citing Rajeev Dubey president, HR, after-market and corporate services, Mahindra & Mahindra Ltd.
“The Virtual marketplace for used cars is likely to be operational by January next year. Initially, it would be a D2D affair in which registered dealer with First Choice will participate. Later on, we will extend it to end consumers. We will work on the ‘clicks and mortar’ model, and have plans to become India’s largest virtual platform for used cars”.
Currently, the market of used cars has largely been unorganised and most of transactions happen through consumer to consumer and neighborhood dealers or agent. Online classifieds sites like Olx.in and Quikr.com also focus heavily on seconds hand sales of automobiles. There is also a demand supply gap in the used car segment in tier 2 and tier 3 cities which Mahindra will be looking to tap into these markets.
With increasing penetration of Internet and online shopping in tier 2 and 3 cities and Mahindra’s credibility as a brand, the company is betting big on used car market which is estimated at 1.2 times of the total new cars to be sold in India in 2012-13.
Mahindra’s larger rival, the Tata group is already in the space with auction sites like Valuejunction.in. The site claims to have sold more than 40,000 passenger vehicles and 10,000 industrial vehicles. It also helps businesses sell stressed, idle business assets. It also runs Autojunction.in,which has more of a content approach as of now.
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