Online retailer Flipkart is planning to sail unchartered territory of automobiles industry. India’s biggest e-commerce company Flipkart sees big opportunity in selling automobiles.
Bengaluru: Online retailer Flipkart is planning to sail unchartered territory of automobile industry. India’s biggest e-commerce company Flipkart sees big opportunity in selling automobiles and accessories online as it will help boost revenues and also drive profits.
According to estimates, the auto industry in considered to be worth over $50 billion. Flipkart is deliberating over a plan to sell automobiles, scooters and cars along with the spare parts.
Flipkart has already started working with car and bike manufacturers like Mahindra & Mahindra, Kawasaki and TVS Motors. Reports suggest that online retailers can charge over 2% commission for each automobile sold without having to worry about the inconvenience of delivery.
With this move, the Indian e-commerce player will lock horns with auto retail portals such as CarDekho and CarTrade and also aggressively strike an edge over primary rivals such as Snapdeal, ShopClues and Amazon.
Snapdeal has already made a head-start in this space by launching a dedicated platform called Snapdeal Motorsr. Amazon India also launched an auto and accessories category listing over 22,000 products.
Flipkart is keen to maintain its position at the apex of Indian e-commerce market, with bitter rivals Snapdeal and Amazon engaging in aggressive strategies to strengthen its foothold in the India market.
Just recently Flipkart saw it valuation being slashed 25% by Morgan Stanley which has stake in the e-commerce company. This saw Flipkart’s valuation to decline from $15.2 billion to $11 billion.
Now Flipkart plans to sell automobiles online