homeauto NewsMercedes, Volkswagen, Honda retailer says average selling price of a vehicle has gone up 22% in last nine months
Mercedes, Volkswagen, Honda retailer says average selling price of a vehicle has gone up 22% in last nine months
Landmark Cars is a leading player in the Indian automotive market, with a strong focus on luxury brands like Mercedes and BYD. The company's focus on proforma revenue and its impressive revenue growth are a testament to its strong market position and its ability to stay ahead of the curve in a highly competitive industry. With the upcoming Mercedes renewal and the BYD dealership model, Landmark Cars is well-positioned to continue its growth trajectory and build on its success in the years to come.
Landmark Cars, which runs dealerships in India for Mercedes-Benz, Honda, Jeep, Volkswagen and Renault, said after their first earnings since listing, that the average selling price of a vehicle has gone up as much as 22 percent in the past nine months.
Landmark Cars also has a commercial vehicle (CV) dealership for Ashok Leyland in India.
Sanjay Thakker, the Chairman and Founder of Landmark Cars, recently shared some interesting insights into the growth trajectory of his company in an interview with CNBC-TV18.
“Because we are dealing in premium and luxury cars, our average selling price of the vehicle that we have been selling has gone up by 22 percent in these 9 months over the last 9 months,” he said.
Landmark Cars have a presence across the automotive retail value chain, including sales. The company, in its business update a couple of weeks back l, informed that in the quarter mentioned it opened three new outlets of BYD brand in Delhi-NCR and Mumbai, 2 new outlets of Jeep brand in Navi Mumbai, and replaced two small workshops with a much larger workshop of Mercedes Benz in Kolkata.
The company also shut down seven non-viable outlets of Renault in Punjab.
The company said it has utilized Rs 138 crore as on December 31, 2022, out of the net proceeds of the initial public offer (IPO) to repay working capital loans, in-line with the utilisation of net proceeds as stated in the prospectus. The company had raised Rs 552 crore through IPO.
Thakker revealed that Landmark Cars is looking at proforma revenue rather than reported revenue to track its performance, and the company's revenue growth for the first nine months of FY23 is an impressive 40 percent.
Thakker also spoke about the wider industry, stating that while the Indian automotive market is expected to grow in low single-digits, Landmark Cars is on track to achieve significantly higher growth than that. This is a testament to the company's strong market position and its ability to stay ahead of the curve.
When asked about the company's upcoming renewals, Thakker revealed that the next renewal for Mercedes is set to take place in October 2024. This gives Landmark Cars a solid runway to continue building its relationships with customers and strengthening its position in the market.
Thakker also spoke about the company's full-fledged dealership model for BYD. This means Landmark Cars has a significant role to play in the sales, marketing, and servicing of BYD vehicles in India. This is a key growth driver for the company and is expected to contribute significantly to its future revenue growth.
The stock was up 0.85 percent in the last week and 12.14 percent in the past month.
For more details, watch the accompanying video
(Edited by : Abhishek Jha)
First Published: Feb 15, 2023 11:18 AM IST
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