Automartindia, jointly promoted by the Mahindra group, HDFC and Sah & Sanghi plans expand its chain of used car outlets by setting up a total of 48 outlets over the next 3 years.
In another move, Automartindia plans to rope in 5 major car manufacturers to facilitate their exchange programmes. Hyundai Motors is already a part of Automartindia's exchange programme that enables existing car owners to buy new cars in exchange of their old cars.
Out of the 48 outlets being planned, 22 will be owned by Automartindia and the balance 26 will be operated through franchisees countrywide.
"We started in August 1999 with on-line operations through our website automartindia.com followed by opening of outlets in Mumbai, Bangalore and Chennai, this year. Our fourth outlet with a total area of 20,000 square feet became operational in Pune from July 4," Vinay Sanghi, chief executive officer, Automartindia said.
Currently Automartindia offers both on-line and off-line buying and selling of used cars. The on-line channel has an inventory of over 7,000 vehicles and over 80,000 registered users. The company has claimed that its interactive website attracts over 5,000 buyers and sellers every month, making it the largest platform for interactions. These on-line queries are fulfilled through retail outlets.
The company forecast a potential of 1,000 cars per month for the Pune market and hopes to repeat its success achieved in other 3 cities.
The entire project is being financed by Automartindia through its equity capital involving a total investment of Rs 25 crore in the first phase. The company has already invested Rs 15 crore and the balance amount will be invested by December 2001.
Automartindia is brand neutral used car outlet. It has a tie-up with ICICI Car Loans to provide finance for the purchase of used cars.
The Mahindra group holds 47 per cent equity stake in Automartindia, HDFC 10 per cent, Sah & Sanghi 20 per cent and the balance 18 per cent is held by a financial institution and through employees stock option.
