Flip­kart to Ex­pand Sales of Two-wheel­ers Na­tion­wide

Ecomm ma­jor to be­gin with TVS Mo­tor’s en­tire range from May, and branch out to other brands in 2-3 months; to also sell all new pas­sen­ger ve­hi­cles from M&M

The Economic Times - - Business Of Brands - Sharmistha.M@ times­group.com

New Delhi: On­line re­tailer Flip­kart, which for­ayed into the au­to­mo­tive space a year back, will com­mence na­tion­wide sales of two-wheel­ers start­ing next month.

Flip­kart had started sales of the en­tire range of TVS Mo­tor’s mo­tor­cy­cles and scoot­ers in Bengaluru on a pi­lot ba­sis in March. While the TVS Mo­tor’s port­fo­lio would be made avail­able na­tion­ally on its site from May, prod­ucts from all ma­jor twowheeler brands would be added in the next two to three months.

Adarsh Menon, vice-pres­i­dent for elec­tron­ics and au­to­mo­biles, Flip­kart said, “We had launched the au­to­mo­tive cat­e­gory in April 2015 by com­menc­ing sale of auto ac­ces­sories on our plat­form. We have wit­nessed 600% year-on-year growth in sales of auto ac­ces­sories and auto elec­tron­ics. In twowheel­ers we did a pi­lot with TVS Mo­tor in Bengaluru and will start sales na­tion­wide next month. All ma­jor two-wheeler brands would be on our plat­form shortly.”

Be­sides two-wheel­ers, all fu­ture pas­sen­ger ve­hi­cles launched by Mahin­dra & Mahin­dra (M&M) will be avail­able on Flip­kart in fu­ture. The ar­range­ment to sell pas­sen­ger ve­hi­cles on­line with M&M started with the KUV100, which was launched ear­lier in Jan­uary this year. Flip­kart said that the re­sponse to the ve­hi­cle has been en­thu­si­as­tic, mak­ing room for fur­ther in­ter­ven­tions in the pas­sen­ger ve­hi­cle space. Flip­kart de­clined to dis­close the num­ber of Mahin­dra KUV100s sold on­line. Given the mar­ket ac­cep­tance, Menon said the au­to­mo­tive cat­e­gory has emerged to be among the five fastest grow­ing ver­ti­cals in Flip­kart as of now; oth­ers be­ing smart­phones, fash­ion, large ap­pli­ances and fur­ni­ture. “We aim to pro­vide a trans­par­ent and smooth end-to-end ex­pe­ri­ence to con­sumers pur­chas­ing au­to­mo­biles on our plat­form be it pric­ing or de­liv­ery. The tar­get is to cor­ner a 2% share in the do­mes­tic two-wheeler mar­ket by the end of the year. Au­to­mo­tive is def­i­nitely a core fo­cus area”, added Menon.

As many as 16.5 mil­lion two-wheel­ers were sold in the coun­try in the last fi­nan­cial year. Flip­kart’s tar­get to gar­ner sales of around 330,000 units over the next eight months would pit it against on­line auto clas­si­fied por­tals such as Car­Trade and CarDekho.com.

Ri­val Snapdeal too launched Snapdeal Mo­tors — a plat­form of­fer­ing an “in­te­grated buy­ing ex­pe­ri­ence” for au­to­mo­biles by en­abling on­line book­ing and loan ap­provals within two min­utes of a ve­hi­cle pur­chase on the site – in Novem­ber last year. Ama­zon too com­menced sales of auto ac­ces­sories on its site ear­lier in Fe­bru­ary this year.

Snapdeal, on its part, has tied up with Hero Mo­toCorp, Hero Elec­tric, Suzuki Mo­tor­cy­cle, TVS Mo­tor and Po­laris In­dus­tries to sell mo­tor­cy­cles and off-road ve­hi­cles. The e-com­merce gi­ant is also work­ing with M&M, Maruti Suzuki and Dat­sun to sell their ve­hi­cles on the site. The e-tailer is eye­ing rev­enues of $ 2 bil­lion from its auto ver­ti­cal in the next two years.

The au­to­mo­tive cat­e­gory is one of the five fastest grow­ing ver­ti­cals for Flip­kart, the oth­ers be­ing smart­phones, fash­ion, ap­pli­ances and fur­ni­ture

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