₹3,127-crore Landmark Cars, the only listed car dealership chain in India, is looking to expand its business through acquisitions and by leveraging new partnerships with companies such as MG Motor India and Mahindra & Mahindra (M&M). The acquisition route is not new for Landmark. A quarter of its 117 outlets consists of dealerships it has bought out from previous owners.
“There are many family-run dealership groups in India that have succession issues, financial stress, or they may want to migrate to another business," Sanjay Thakker, promoter & chairman, Landmark Group, said. “We are in a position to pay them a fair market price." Apart from acquisitions, Landmark is hopeful of higher business from its dealer outlets for MG Motor and M&M, which operate in the high average-selling-price passenger vehicle market. According to a Crisil report, automotive dealers will see their revenues accelerate 8-10% this fiscal, driven by 5-7% increase in sales volumes, premiumization and price hikes of 2-5% by original equipment manufacturers (OEMs).
Landmark also expects more automotive dealership groups in India to consolidate and some to eventually list on stock exchanges. “I’m sure there will be many, many groups that will consolidate and look to list," said Thakker. “The consolidation of dealer networks is anticipated in the coming years as carmakers have started preferring working with limited dealers.
This approach also reinforces trust and brand equity among car buyers," Gaurav Vangaal, associate director, S&P Global Mobility said. Landmark listed its business on the Indian bourses last December, when its issue of ₹552 crore was subscribed over three times. Since listing, the stock has risen about 65%, closing at ₹755.4 on the
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