Toyota Kirloskar Motor (TKM), the Indian subsidiary of Japan’s Toyota Motor Corp, on Friday announced its foray into passenger car auction by launching a new business called Toyota Auction Mart.
Toyota is the first auto manufacturer in India to venture into used car auction business.“The launch of Toyota Auction Mart is our step towards developing a fair and transparent used car ecosystem. We will provide reliable service to our customers and contribute to the society,” Naomi Ishii, managing director, Toyota Kirloskar Motor said.
Toyota has been engaged in auction through affiliates for more than 45 years now in Japan and sells an average 8 million cars through the Auction Mart annually with revenues of around R1,500 crore. “We will enable faster disposal of used cars at right prices and right quality cars to the buyers,” he told reporters after unveiling the new business entity.
To begin with, the company will charge R2,000 per car from both buyer and seller as its commission. Prospective buyers and used car dealers from in and around Bengaluru will be participating in the first auction scheduled on September 15, 2015 at the newly created facility at Toyota’s car plant in Bidadi. Going forward, the company intends to conduct at least two auctions every month.