Landmark Cars Used Car Business: Landmark Cars plans to scale up its pre-owned car business through its partnership with OLX, with the company looking to co-fund used car purchases, refurbish vehicles and eventually roll out the model across India, Aryamann Thakker of Landmark Cars told NDTV Profit.
Thakker said the partnership with OLX is a unique model for the company, combining OLX's digital reach with Landmark Cars' physical network.
The company plans to use the partnership to build a larger pre-owned car business, although used cars currently remain a relatively small contributor to Landmark Cars' overall revenue.
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Landmark Cars Used Car Business At Rs 120 Crore
Landmark Cars' used car business currently contributes around Rs 120 crore in revenue, Thakker said.
The company sees scope to scale the business as it expands its pre-owned vehicle operations and leverages its existing physical network.
He added that pre-owned cars carry slightly higher gross margins compared with new car sales, providing another reason for Landmark Cars to expand the business.
Landmark Cars, OLX To Co-Fund And Refurbish Used Cars
Under the partnership with OLX, Landmark Cars will co-fund the purchase of used cars and refurbish them before selling them to customers.
The company aims to create a pan-India pre-owned car business by combining digital discovery with physical inspection, test drives and vehicle sales through its network.
Landmark Cars and OLX had announced their partnership on September 24 to build a phygital pre-owned car platform, integrating Landmark's network of around 140 vehicle touchpoints.
The model is designed to address the trust gap in used-car purchases by bringing together online convenience and physical assurance. Customers will be able to discover vehicles online before moving to physical locations for inspection and test drives.
Used Cars, Aftersales To Drive Landmark Cars' Growth
Landmark Cars continues to focus on its pre-owned and aftersales businesses as avenues for building more recurring revenue.
The company's aftersales business generated Rs 267 crore revenue in Q1 FY27, compared with Rs 1,035 crore from new car sales. More importantly, aftersales EBITDA stood at Rs 49 crore, more than double the Rs 23 crore EBITDA generated by new car sales.
The company sees pre-owned and new car sales as potential drivers of a larger aftersales opportunity as vehicles enter its service network.
Landmark Cars Expands BYD, Mahindra Network
Landmark Cars is also expanding its presence in electric vehicles and has added outlets for BYD and Mahindra & Mahindra.
Following these additions, the company will have 12 outlets for Mahindra & Mahindra and 11 outlets for BYD.
EVs accounted for around 30% of Landmark Cars' new car sales revenue in Q1 FY27.
Landmark Cars Sees No Negative Impact From EVs On Aftersales
Management sees “absolutely no negative impact” from EV adoption on its aftersales revenue compared with internal combustion engine (ICE) vehicles.
According to the company, EVs tend to travel more because of their lower running costs, which can increase visits for periodic maintenance and accident repairs.
Landmark Cars also said accident repairs for EVs cost more than those for ICE vehicles, resulting in higher revenue per vehicle over the full year for EVs currently.
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