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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (6238)	9/2/1999 5:16:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 12475

Mahindra & Mahindra unveils site for used vehicles sale Automart India automartindia.com M&M : mahindraworld.com Our Bureau (Indiaserver-The Hindu BusinessLine) MUMBAI, Sept. 2 MAHINDRA Network Services Ltd (MNSL) on Thursday unveiled its Web site for purchase and sale of used vehicles, claimed to be the largest of its kind in India. Currently, it's database features 1290 vehicles, of which 811 are from Mumbai. Pune has contributed 275 vehicles while Delhi has about 100. Nearly 45 per cent of vehicles listed are Maruti-make. M&M's models constitute 15 per cent. The Web site currently has listings from Mumbai, Pune, Delhi, Bangalore and Calcutta. It plans to gradually expand to other cities. The site, www.automartindia.com, went live on August 25. `` Our prime goal is to enhance customer satisfaction in the trade of used vehicles,' Mr. Anand Mahindra, Managing Director, M&M, said at a press conference. The initiative is only one of many such moves planned by M&M in the field of e-commerce. He said M&M has plans in the physical realm as well for used vehicles, which he declined to elaborate citing reasons of competition. Investment incurred on the Web site and revenues expected were similarly not revealed. However, Mr. Mahindra made it clear that while services on the site were currently free, `` Ultimately the goal of all Internet sites is transaction oriented.' In the near future, revenue could be from companies advertising on the site. Upcoming options include insurance, warranty for vehicles, valuation for cars and RTO registrations. These value packages should be in place in three months time. At present, a user can access the site and search for vehicles of his choice against stated parametres. With contact numbers of a chosen party available alongside, the transaction thereafter becomes direct between the buyer and seller. Officials said, the site was mainly a meeting ground in cyber space for intermediaries and those who add value in the used vehicle-business. Anyone wanting to list a vehicle can do so freely. The site is updated regularly to prevent carriage of dead inventory. Mahindra & Mahindra Financial Services Ltd (MMFSL) is a partner in automartindia, offering finance options. It has resolved to be at the doorstep of any customer making contact through the Net, in an hour's time. Talks are on with other interested finance companies also to be partners. Asked about the veracity of vehicle specifications put up at the site, officials said plans were afoot to create a separate list of hassle-free vehicles valued and checked by appropriate authorities. These vehicles may also command a premium. Mr. Mahindra explained the decision to service used vehicle-sales, against the backdrop of the used vehicle-market being at least four times that of new vehicles, in developed economies like the US. The ratio is fairly similar in India. With 500,000 Internet accounts around and still growing, officials estimated good potential for M&M's domestic e-commerce forays. By 2004, two million automobile users are projected in the country. MNSL is a subsidiary of Mahindra Information Technology Services (MITS), which spearheads M&M's thrust in the infotech sector. M&M is currently evaluating whether MITS should go in first for a domestic float or a NASDAQ listing. `` The picture should be clear in a few months time, ' Mr. Bharat Doshi, Executive Director, M&M, said.