Skoda plans to launch online used car sales business

The company plans to change the format of dealership showrooms in tune with global format

Czech car manufacturer Skoda Auto is finalising its plans to launch used car sales business in India, which would be through online. The company is looking at almost 20 per cent of the business to come from this in future, said senior management official from Skoda Auto India Pvt Ltd.

Commenting on the plans to enter into the used cars sales market, he said that the company has been looking at how the online platforms have emerged in the segment.

"Now we are working together with one of the partners wherein we will participate very actively to build a channel dedicated for Skoda. We will jointly invest in terms of offers, communications and funding the people dedicated for the business in our dealership. We will use this platform in terms of pushing the used car business," said Ashutosh Dixit, director-sales and marketing, Skoda Auto India Pvt Ltd. He said that the real product would come into the market in next three to four months.

 

The company has started working on finalising the concept some time back and is determined that it has to be Skoda specific and has to make sense to its customers.

"Currently we are doing it in an informal way. In future, even upto 20 per cent of the business can come through the trade-in platform. But obviously we have to work and grow it," he added. As soon as the company is ready with the concept and the rules are finalised, the company, along with the partner will announce the plans.

"It will be an online platform, we will not work with storing the used car outside," he said.

The company has launched its first dealership facility with the new global corporate design, in India, in Chennai. Skoda has internationally brought in the change in the look and feel of the showrooms and service centres and has completed revamping of 1,800 showrooms across the world so far, said Michael Arndt, head of sales, Asia and overseas, Skoda Auto AS.

Plans are to change the format in 40 of its dealerships in 2016 and the rest in 2017. The company at present has around 66 dealership outlets in the country and has plans to increase it to 70 outlets by end of this year.

Dixit added that the company has entered into a new era and would focus on specific market rather than addressing the mass segment of the market. He said that the company has posted four per cent growth last year and is expecting 10 per cent growth this year. It is also looking at having two to three launches every year.