Reliance to expand its used car businessReliance plans to expand its used car business, scouts land for opening new stores
Apnaloan.com Research Bureau
29 Apr 2008
Reliance Retail Ltd is expanding its fledging used cars business and has started scouting for land.
The company launched its first used-car store, Reliance AutoZone, in January in Jamnagar city, Gujarat. The company is now looking at possible sites in Maharashtra and the NCR (National Capital Region) to open stores in the next three months.
AutoZone offers services for cars and bikes and also sells tyres, batteries and a wide range of automotive accessories. The facility is spread over 15,000 Sq. Ft.
The store offers a warranty of six months to a year, and three free services on used cars, much as Maruti's TrueValue does.
Reliance is hoping a business model, which will set it apart from its competitors, which is to sell accessories and parts besides used cars, and providing repair and servicing facilities as well.
With AutoZone, Reliance joins a list of vehicle makers such as Maruti Suzuki India Ltd, Honda Siel Cars India Ltd, Hyundai Motor India Ltd, Ford India Pvt. Ltd and Mahindra and Mahindra Ltd that run used-car operations.
The used-car market is estimated to be about 10 per cent more than that of new cars in fiscal 2007.