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Maruti Suzuki, the biggest and most popular manufacturer in India, is all setup to change the way dealerships function.
Maruti has announced that it would be creating a land bank to run its dealerships across the country. This would be Maruti's first move into the real estate sector, and also would be changing the control it has over it's dealerships.
The land would be leased out to dealerships, who can setup and run the dealerships, while paying a rent to Maruti.
A similar strategy is used by Mc Donald's where they purchase land and lease it out to their franchisees.
Being one of the biggest manufacturers, it is a game changing move by Maruti, as this would help them improve their dealership reach. For the dealers, they would be saving a lot as they do not have to make the major real estate investment, and this would help them to setup dealerships faster. Also, Maruti can ensure that the dealership can follow company standards, or else they can end the deal and get another party to run the dealership.
Source:
1. Maruti Suzuki firms up plans to develop land banks for dealerships - The Financial Express
2. The Times Group
Maruti has announced that it would be creating a land bank to run its dealerships across the country. This would be Maruti's first move into the real estate sector, and also would be changing the control it has over it's dealerships.
The land would be leased out to dealerships, who can setup and run the dealerships, while paying a rent to Maruti.
A similar strategy is used by Mc Donald's where they purchase land and lease it out to their franchisees.
Being one of the biggest manufacturers, it is a game changing move by Maruti, as this would help them improve their dealership reach. For the dealers, they would be saving a lot as they do not have to make the major real estate investment, and this would help them to setup dealerships faster. Also, Maruti can ensure that the dealership can follow company standards, or else they can end the deal and get another party to run the dealership.
Source:
1. Maruti Suzuki firms up plans to develop land banks for dealerships - The Financial Express
2. The Times Group