MFCWL already owns & operates offline physical stores for reselling of second-hand cars & will soon open a e-shop confirmed Rajeev Dubey, President, HR, After-market & Corporate services, Mahindra & Mahindra Ltd, “The Virtual marketplace for used cars is likely to be operational by January next year”
A virtual shop for used cars certainly seems like a risky proposition. While one is certainly aware about the state & features of a brand new car, a used car can have many nuances. There can be multiple hidden drawbacks which are impossible to spot on the website. While these minor defects can be very well acceptable, potential customers will have to physically inspect & sign-off before executing the decision to purchase.
How is MFCWL going to tackle this? The used-car dealership has a two-stage approach to handle such a necessity. The company will be adapting Walmart’s famous business style of ‘Bricks N Clicks’ and will offer a chance to virtually check the options & physically verify the same at an offline location. Only when the potential buyer is satisfied at both the junctures, will a sale be made. This approach has a clear advantage over an offline-only pattern employed commonly right now.
India’s used car segment & market holds great potential. But owing to lack of organization, this sector lies hugely under-developed. There are multiple vendors within the same locality & due to chronic decentralization; prices, offers & car types vary wildly.
Secondly, the company has chosen to prioritize registered dealers & will launch a ‘Dealer To Dealer’ (D2D) operation initially. This should help the company gain traction with multiple physical used-car shop owners & build a dependable network. Once this is done, the company can confidently list used-cars that will be surely available for offline inspection.