The retail boom is sparing no one and big auto companies are redefining their retailing strategies to catch the attention of customers and deal with the intense competition and slowdown in the sector.
Maruti and Toyota are exploring idea of opening showrooms in malls to catch the increasing footfalls. Reliance Retail and Big Bazaar are in talks with Bajaj Auto and Hero Honda to set shop in their hypermarkets.
RIL also plans to acquire some existing automobile dealerships in the metros. Initially, it will use the surplus real estate of the petrol pump network. The difference with conventional auto dealership would be that RIL will retail multiple automobile brands of 2-wheelers as well as 4-wheelers under one roof.
However, auto companies have to separate the area of sales between existing dealers and Reliance Retail so as to avoid any clash of business.
Reliance Retail’s automobile retail venture would be undertaken only at highway based hypermarkets. It is also planning to enter into selling car accessories and servicing automobiles.