Automartindia sets up shop in Chennai

By Our Corporate Reporter

CHENNAI, JUNE 28. Automartindia, which deals in used cars, has established an outlet in Chennai. It has already an outlet in Mumbai.

According to Mr. Vinay Sanghi, CEO, the response is encouraging with the conclusion of deals for 80 cars in two months.

It plans to open three more outlets shortly. It proposes to have 48 outlets in three years of which franchisee outlets will be around 28. Automartindia, promoted by Mahindra and Mahindra, HDFC and Shah & Sanghi, plans to have tie-ups with five leading car manufactures.

It had recently tied up with Hyundai Motor India. The company enables customers to exchange their old cars for new Hyundai cars after evaluating the condition and price.

Mr. Sanghi said the Indian market for used cars was currently estimated at 1.2 million units. But the problem ailing the industry was the lack of transparency and reliability. To overcome this, the company has a unique certification programme, which will reveal the condition of engine, gear box and life of the vehicle.

This will enable financial institutions, which offer loans for second hand cars to know about the value of the vehicle.

The company has tied up with ICICI Bank for arranging loans to customers.

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Section  : Business
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