Group Landmark, which runs about 120 automobile dealership outlets in 10 States representing nine passenger car brands including Mercedes-Benz and Jeep, is focusing on high margin businesses of retailing premium and luxury cars, after sales, and dealing with used cars to increase profits.
ADVERTISEMENT
“We are focused on the premium and the luxury car segment, which is where the industry has finally moved to decisively. Premiumisation is the buzz word across India. The luxury car market grew at 20% in the calendar year of 2023 as compared with the passenger car industry’s 7-8% growth,” Aryaman Thakker, Executive Director, Group Landmark said in an interview.
“So, the premium and the luxury car industry should go at a faster pace than the auto industry overall. We feel that for the foreseeable future the premium, the luxury segment will be driving the growth. And it’s our time to capitalise on this,” he added.
ADVERTISEMENT
After sales, which provides better returns, would be under focus on. “After sales is the servicing of those cars. So after sales is a much more predictable and a consistent profit driver for us. We have grown at a compounded 20% CAGR over the last 9 years when it comes to our after sales business,” Mr. Thakker said.
Landmark has started building on the third pillar of profitability, which is the used car business. Rather than dealing with all brands of used cars, the company has decided to deal with the brands it has been associated with.
“We will only do the brands that we are representing. So, if we are currently representing nine brands, we will only focus on securing used cars of those brand and selling them.”
Along with used car business, the company had also entered into the car care business which includes providing ceramic coating, graphene coating, paint protection films, window films, vehicle disinfectant treatments. “These are high margin businesses, and we are offering them to our customers,” he added.