1. Startups

Carmudi Indonesia's Business Plans Throughout 2017

Starting to focus on increasing transactions by entering the C2C segment and increasing the number of offline car exchanges

Entering its third year, the car buying and selling platform Carmudi Indonesia has a number of aggressive plans to seize the automotive online market share in Indonesia. The ultimate goal, Carmudi Indonesia wants to create an automotive market ecosystem by providing various online services.

With its wide geographical location and large population, Indonesia is a major market share and market Carmudi is the largest, with a total share of around 50% compared to six other countries in the Asian region where Carmudi has operations.

Talking about business achievements Carmudi IndonesiaCurrently, Carmudi has been operating in 10 cities, namely Jakarta, Bandung, Semarang, Surabaya and Malang. Whereas listing vehicles have reached more than 60 thousand data, with registered dealer partners there are already more than 4 thousand. While the average number of site visitors reaches 2 million people per month.

Carmudi Indonesia CEO Subir Lohani claims that this achievement has made Carmudi the vehicle buying and selling platform with the most significant growth in Indonesia. To continue this achievement, Subir said that his party will carry out several new initiatives in line with shifting focus from initially adding vehicle listings to increasing business transactions.

"Last year was our biggest achievement from various business sides because the marketing strategy we used was not only online but also offline. The offline strategy is important because the Indonesian market is still too early to be implemented immediately. full online," explained Subir to DailySocial.

Enter the C2C business segment

As for the increase in business transactions, Carmudi plans to make administration simpler between vehicle sellers and buyers, especially between sellers and individual buyers. In this regard, Carmudi plans to start taking the C2C (Customer to Customer) segment seriously, but with a different touch.

Subir explained that Carmudi has actually accommodated individual sellers, the number has grown almost 3 times since the end of last year until now. This increase shows that there is great potential if the C2C segment is taken seriously. It projects that the number of individual sellers will increase 10x by the end of this year.

He explained that individual sellers who choose to sell their own vehicles usually want a higher selling price than the dealers offer. Unfortunately, they also have a tendency to demand cash advance payments from buyers.

This condition makes C2C transactions a problem, because not all buyers can get credit from banks in a fast time.

"If you sell a vehicle through a dealer, the seller will get cash quickly but the selling price will be cheaper. Meanwhile, if you sell it yourself, it is rather difficult for buyers to get cash for down payment. We will try to solve this problem, we will make the transaction complete. easier."

Moreover, by starting to take the C2C segment seriously, individual sellers will be increasingly ogled not only by individual buyers, but also by the dealers themselves. Carmudi hopes that this service will open up more opportunities to create transactions in the future.

Adding Carsentro location

One of the Carsentro in Surabaya / Carmudi Indonesia

Carmudi Indonesia will continue with several initiatives, including the establishment of Carmudi Sentra Otomotif (Carsentro) a used car market held in many cities in Indonesia, such as in Semarang, Solo, Malang, Surabaya, Yogyakarta and BSD. The area ranges from 2 thousand to 6 thousand square meters.

Carsentro is Carmudi's long-term investment area to increase sales of its used car units, because there is an integrated marketing concept between online and offline. Not only that, Carsentro partnered with BCA Finance to provide vehicle financing solutions for consumers to find their dream car.

The plan is that Carmudi will add three to five new locations for other Carsentro, the locations to be chosen include Palembang, Medan and Makassar. Unfortunately, Subir is reluctant to disclose the costs that the company has prepared for the establishment of Carsentro. He only said that Carmudi was renting land for the long term, not buying it.

"Even though Carsentro is offline, we will continue to drive transactions online. We are willing to invest in bridging transactions from offline to online because Indonesia is not yet ready to go full online. Carmudi is committed to building infrastructure to help make the transition to online easier. ."

Carmudi will also start entering tier two and third cities to increase the number of dealers. Carmudi plans to expand to Kalimantan as one of its expansion areas.

Carmudi Challenge

There are still a number of challenges that need to be resolved by Carmudi, such as the education of the dealers themselves. The reason is that dealer owners who are in the range of 50 years, generally still believe in conventional methods, are less aware of technological developments and the importance of online marketing. Unlike the dealer owner who is in the range of 30 years.

"We are still seeing generation gap, therefore we need more intensive education to dealer owners about the importance of online marketing and valuetheir platform for their business."

Subir said that Carmudi's ultimate dream is to follow in the footsteps of Astra as a winner in the automotive segment. Astra has an ecosystem by establishing used, new, finance, inspection, and workshop cars.

"We all know how Astra built its ecosystem to win the automotive market, now we want to be like them but for the online segment. That's why we built various services to support the Carmudi ecosystem," he concluded.

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