Automakers are seeing good potential in online sales of vehicles.
Hero MotoCorp, the world's largest two-wheeler maker (by volume), listed its entire range of two wheelers on the online marketplace, Snapdeal.com to take the next step in sales and marketing, and to understand the potential of the same.
After 10 months of the tie-up (since December 2014), the company has sold 3,00,000 vehicles through the website. The total value turns out to be INR 1,500 crores, as average price of a two wheeler is around INR 50,000.
Although the figure is just five percent of the company's annual sales, it is considered to be significant. Also to be noted is that Hero's Snapdeal sales in 10 months is more than the overall sales of Mahindra Two Wheelers and Piaggio (Vespa) in a year. The former has sold 165,000 units in 2014-15 and the latter has sold 28,000 units in the same period. Suzuki Motorcycle India has sold 340,000 units last year, contributed by the Gixxer.
Honda Motorcycle and Scooter India, Hero MotoCorp's former partner and close competition, has not ventured into the online world yet.
Hero has an expansive sales network which covers 6,000 locations across India. The online portal helps the company reach regions that are yet to receive a touchpoint. Through Snapdeal, customers can book any of the entire range of two wheelers for INR 1,000. After booking online, the nearest / preferred dealership will get in touch with the customer for further formalities and delivery.
[Source: Business Standard]