Reliance Retail mulls used vehicle market foray in India

Mukesh Ambani-controlled Reliance Retail is planning a second-hand car market venture on the lines of Maruti's True Value and Mahindra’s Automart. The venture marks an addition to its plans to set up multi-brand car servicing stations at its retail outlets and its auto finance business. Reliance Retail plans to cover 1,500 cities with over 1,500 supermarkets and 1,000 hyper-markets. Reliance Retail is reportedly in talks with Corghi SpA, an Italian automotive firm, to offer customers at its outlets vehicle servicing facilities. Corghi manufactures tyre changers, wheel balancers, wheel aligners, and lifting and testing equipment. An RIL spokesperson declined to comment. Industry estimates put the annual second-hand car market at 1 million units, almost as big as the new-car market (1.3 million units). Both markets grew 20 per cent in 2006-07 and are expected to grow at 20 to 25 per cent in the coming years.
The market is dominated by informal deals, with the organised sector accounting for only 20 per cent of the business through players like Maruti (True Value), Hyundai (Advantage), Ford (Assured), Mahindra (Automart India) and Honda (Auto Terrace). Others include e-commerce auto websites

Courtesy: EconomicTimes
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