Ecommerce retailer Flipkart is eyeing sales of automobile and accessories sales online. The Bengaluru-based company plans to aggressively push sales of motorcycles, scooters and cars on its platform besides selling spare parts and services, according to sources.
Considering huge margins associated in the sector, Flipkart is looking at both boosting revenues and delivering profits.
If the plan materialises, the online retailer will pose a tough challenge to auto retail portals such as CarDekho and CarTrade as well as sharpen competition with primary rivals Amazon and Snapdeal. By ensuring timely delivery and price transparency, Flipkart can strike an edge over its competitors.
According to industry estimates, the total automobiles industry in India is worth about $50 billion, with sales till now only coming through offline channels like auto dealers. With auto portals like CarDekho and CarTrade having started generating leads for dealers online, Flipkart has chosen a right time to take the plunge.
It is learnt that Flipkart has started working with car and bike manufacturers like Mahindra & Mahindra, Kawasaki and TVS Motors. Flipkart's push in the category comes after local rival Snapdeal has already made inroads into the space by launching a dedicated platform called Snapdeal Motors in November 2015. Likewise, Amazon India too launched an auto and accessories category last month, with over 22,000 products listed.
Source : BS Motoring