-Allows OEMs to have a wider reach without a significant increase in costs

-Natural extension of CarWale’s business model

CarWale and Citroën recently signed and began operations under an agreement where the former would assist the latter in providing last-mile delivery of its C5 Aircross to customers pan India. Under this deal, CarWale would, as a part of the process, deliver the car to the buyer after it has gone through all the processes including registration at the nearest RTO. This is a first of its kind initiative in the country.

The model sets the precedent for how OEMs both across four wheels and two wheels would be able to set up wider distribution networks without the need for full physical infrastructure normally associated with vehicle retail.

Much like Citroën getting a wider reach at a controlled cost via this method, CarWale too will stand to gain from it in the future. Speaking on the initiative, Banwari Lal Sharma, CEO, said that CarWale was the pioneer when it came to online retail and research and it only seemed logical to take the business a step forward by partnering with Citroën. It would enable the portal to get closer to its consumers as well as have a larger hand in the actual business of moving cars from the manufacturer to the buyer.

Such a model is also expected to accelerate a change in auto distribution where the traditional method of having to visit a dealership may reduce among buyers. Most of the information is available online and today many consumers prefer to have test drive cars brought over to their home or place of work where they can be tested and examined in a more comfortable setting. This will enable dealerships to become smaller and leaner with lower running costs.