Mukesh Ambani’s Reliance Retail is contemplating a venture in the used cars segment similar to Maruti’s True Value and Mahindra’s Automart. In addition it also plans to set up multi-brand car servicing stations at its retail outlets and its auto finance business.
Reliance Retail plans to set up this venture across 1,500 cities with over 1,500 supermarkets and 1,000 hyper-markets. Talks are on with Corghi SpA, an Italian automotive firm, (which manufacutres tyre changers, wheel balancers, wheel aligners, and lifting and testing equipment),to offer car servicing facilities at the Reliance outlets. No official confirmation could be sought on this deal.
According to experts in the automotive industry, the annual second-hand car market is at about 1 million units, almost as big as the new-car market (1.3 million units). Both markets have grown by 20 per cent in 2006-07 and are expected to further grow at 20 to 25 per cent in the future.
However, the organised sector accounts for just 20% of the business with established players like Maruti (True Value), Hyundai (Advantage), Ford (Assured), Mahindra (Automart India) and Honda (Auto Terrace), while others comprise of e-commerce auto websites.
Source: Business-standard.com
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