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TVS Motors joins e-marketplace

India's third largest two-wheeler company TVS Motor Company has entered into a tie-up with Snapdeal. Jumping on to the e-commerce platform, it would soon start selling most of its line-up on Snapdeal's portal, it is learnt.

After Hero MotoCorp, Suzuki Motorcycles India and Mahindra two-wheelers, TVS would be the fourth major brand that would make a foray into the online marketplace ecosystem.

"We have got into a tie-up with Snapdeal. Unlike other products, automobiles do require hands-on approach. Customers are becoming more tech-savvy, and checking out new vehicles online," said an executive at TVS Motors. While the whole process of buying a vehicle might not be online, some parts, for instance initial booking would be done on the portal.

The company has around 1,000 main dealerships and 3,000 sub-dealerships. The launch of the online service is expected next month.

While TVS is about to join the online world of commerce, India's largest two-wheeler company, Hero MotoCorp, was the first one to understand the reach and effectiveness of online marketplace. The company had sold 400,000 two-wheelers worth Rs 2,000 crore on Snapdeal in 11 months after its launch, in December 2014.

Japanese two-wheeler giant Suzuki Motorcycles India has managed to sell around 6,000 motorcycles since it got into a tie-up with Snapdeal last November. "You cannot ignore online marketplaces and need to have a presence. A large number of our target customers are net savvy," said Suresh Babu J, national head, marketing and product planning.

Snapdeal, after getting an overwhelming response to its vehicle vertical, started Snapdeal Motors in November 2015. The purpose was to offer an integrated buying experience, enabling online booking along with loan approvals.

The company hopes the platform will clock over $2 billion in sales over the next two years.

Realising the scope of the market, mobile wallet provider, Paytm, is planning to increase the line-up of vehicles on its marketplace. The company at present sells Mahindra's Centuro motorcycle.

"As a natural extension to this business philosophy, we have added 'cars & bikes' as a new category, with varied options and attractive offers. We are selling electric bikes as well and would be adding a more hybrid and electric brands in coming weeks. This is going to be a game changer for all the stakeholders," said Renu Satti, vice-president, Paytm.

AUTO COMPANIES VROOMING AHEAD WITH E-COMMERCE

Companies tied up with

SNAPDEAL: Hero MotoCorp Piaggio Suzuki Motorcycle India SHOPCLUES: Mahindra two-wheelers Honda motorcycles Hero Electric PAYTM: Mahindra Centuro motorcyles