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Old 4th June 2020, 13:43   #16
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Re: Car Mall for India! Why don't we have multi-brand car dealerships?

I see big opportunity for brands with same origin or who have partnerships already. Why not one big showroom for VW, Skoda and Audi together? All are German brands with same parent company if i am not mistaken. Clients will get multiple choices too. A.S.S. will also improve and dealers will be happy with better numbers. Why not single showroom for Nissan, Datsun and Renault? Anyways all are struggling, Renault is somewhat doing better but i guess dealers in small cities must be struggling with low volumes anyways.

Difficult for companies like Maruti though as they are big enough to have own showrooms. But in small cities they can have Nexa coupled with normal Maruti showrooms.
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Old 4th June 2020, 14:03   #17
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Re: Car Mall for India! Why don't we have multi-brand car dealerships?

Another example of dealership of different brands operating at close distance to each other can be witnessed in Dr. Rajkumar Road in Bangalore.

the two wheeler dealership of Honda, Hero, RE, Jawa and Mahindra and few others operate at a stone throw away distance from each other.
besides there are places such as J.C. Road for automobile accessories.
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Old 4th June 2020, 14:13   #18
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Re: Car Mall for India! Why don't we have multi-brand car dealerships?

I will mention the advantages and disadvantages of having a single multibrand dealership within a common roof:

1. Consistent dealership experience for all brands - As the dealer selling multiple brands is assured that the buyer visiting his premises will definitely buy one of the product, he will provide equal opportunity for us to check all the available products. Manufacturers like Maruti will be at disadvantage as they have made a good name in providing good customer experiences consistently. Skoda or Volkswagen will be happy with this as their past sins won't be a factor anymore.

2. Multiple test drives options available - As all the products will be available to test drive within a single premises, we and our family can plan a day off to check all of them out. This will save time for all of us involved and helps in taking away the right product home.

3. Consistent after sales service - If experience provided by particular dealer is good , then product like Maruti and Toyota will be at a disadvantage again, because after sales service won't be the USP anymore. Ford or Skoda will be grinning again as their past sins will be wiped clean.

4. Superior product will win - A product with better build quality will definitely come on top. Again, disadvantage for Maruti or Hyundai. Buyer will go for Ford or Skoda with eyes closed. Win-win situation for the customer here. Ford Ecosport or Tata Nexon will get the numbers that they deserve.

5. No more cross badging - Renault and Nissan's Scala/Sunny or Micra/Pulse, Maruti - Toyota's Baleno/Glanza will be history. Manufacturers will be on toes to provide a product having its individual DNA and they won't be able to just get away with plastic surgery on their products. Again a win-win situation for the customer.

6. No more individuality for the brand - A dealers attitude will guide the car's sales. A poor experience will shoo away buyer from buying even a Maruti. More so, dealers will try to blackmail the manufacturers in getting more profit margins and incentives for selling a particular product of a brand. Here, brands with a cunning ability to win dealers trust will succeed. A good product sometimes might not even move out of the showrooms because of this.

7. Used car prices might appreciate - Dealers will provide a good value for your old car in exchange for a new car as this will promote sale for a new car. Buyers looking for a used car won't be able to get a sweet deal from the individual seller anymore, as the car owner will prefer to sell it directly to the dealer for an exchange. Manufacturers will be at a loss as buyer will no more stay within the same brand if looking for an upgrade.

Last edited by DrCar : 4th June 2020 at 14:27. Reason: Adding a point
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Old 4th June 2020, 18:59   #19
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Re: Car Mall for India! Why don't we have multi-brand car dealerships?

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Originally Posted by CrAzY dRiVeR View Post
One such example from Bangalore. The below complex belongs to VST group and houses Volkswagen, Mahindra and Kia (Ford earlier) under one roof - but as three separate entities.
I can't see the dealerships for VW and Kia but the Mahindra one is India Garage - which is owned by VST Group. I service my Scorpio in one of their Chennai branches.

I suppose they own both the VW and Kia dealerships as well, so they're perfectly justified in sticking all 3 dealerships in the same property that already belongs to them so no issues about rent etc.
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Old 4th June 2020, 19:29   #20
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Re: Car Mall for India! Why don't we have multi-brand car dealerships?



VST are a pretty deep pocketed company, aside from this they have a mid sized residential real estate company and manufacture a bunch of auto parts for exports.
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Old 4th June 2020, 22:32   #21
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Re: Car Mall for India! Why don't we have multi-brand car dealerships?

Something which I wished for while hunting for that perfect car.
A great idea for both - customers as well as dealers. And imagine the fun when 2 sales guys face off to win the buyer.
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Old 5th June 2020, 08:42   #22
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Re: Car Mall for India! Why don't we have multi-brand car dealerships?

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Originally Posted by TheVegabond View Post
Something which I wished for while hunting for that perfect car.
A great idea for both - customers as well as dealers. And imagine the fun when 2 sales guys face off to win the buyer.
We need one of those reality TV shows where a bunch of DBHPians turn up at one such store and all these salesmen turn up and try to sell them on various cars.
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Old 5th June 2020, 11:03   #23
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Re: Car Mall for India! Why don't we have multi-brand car dealerships?

Wasn't Carnation by Ex-Maruti Jagadish Khattar based on similar concept? He found investors who lost their money as it didn't take off and now settled for multi-brand service or something?
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Old 5th June 2020, 14:14   #24
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Re: Car Mall for India! Why don't we have multi-brand car dealerships?

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Fat chance we'll ever see multi-brand dealers in India. It's like a Maruti dealer going to their HQ and asking "can I sell Hyundai cars on the same / next door premises?". The manufacturers will never allow it, for the simple reason that they have gotten away with "single brand" showrooms all these years. The OEMs would hate to fix something that isn't broken, especially if they don't stand to benefit from the change.
I would like to mention, even today also, single owner, multiple brand at different showrooms is already in practice.

For e.g., One owner has showroom of Hyundai, Honda and Ford, together. This is the situation I came to know in Noida. This owner moved the employees based on the performance and foot fall of each showroom. Obviously, Hyundai has got highest footfall as compared to Honda and Ford, so their best sales staff, service staff always gets transferred to Hyundai, and average performing staff moves to Honda and Ford.

So, I think OEMs are OK, if they get the businessman to invest for the showroom and already owns another brands too. Not sure about the norms from OEMs on this.
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Old 5th June 2020, 17:19   #25
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Re: Car Mall for India! Why don't we have multi-brand car dealerships?

Imagine the visibility Skoda or VW will receive if they merge their service centres and showrooms? Definitely more presence across all cities. This is something they have to decide about.

But I don't see them going this route at this juncture because their products are very similar. A person visiting a Skoda + VW showroom will probably opt for the Rapid over the Vento or the T-ROC over the Karoq. Their portfolio will have to be revisited for such a move to take place.
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Old 9th June 2020, 09:30   #26
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Re: Car Mall for India! Why don't we have multi-brand car dealerships?

One such example is Car Galaxy in Thane, Maharashtra. They have multiple brands under one roof , easy finance solutions and an option to choose from both new and pre-worshipped cars! AFAIK they have close to 500 models under their belt.
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Old 17th April 2021, 00:38   #27
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Re: Car Mall for India! Why don't we have multi-brand car dealerships?

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Originally Posted by GTO View Post
Fat chance we'll ever see multi-brand dealers in India. It's like a Maruti dealer going to their HQ and asking "can I sell Hyundai cars on the same / next door premises?". The manufacturers will never allow it, for the simple reason that they have gotten away with "single brand" showrooms all these years. The OEMs would hate to fix something that isn't broken, especially if they don't stand to benefit from the change.
I believe that Maruti Suzuki requires that dealers do not have other passenger vehicle dealerships.
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