Along with Chevrolet, LAA is starting the very first online only store for new cars in Ecuador. This new store will be focused on selling General Motors manufactured cars including the Grand Vitara SZ, DMAX, Chevy Sail, Cruze, Equinox, Tracker, and Capitiva. All sales will also feature added benefits for those buying only online.
In Ecuador, Chevrolet has around 41% market share in terms of new cars sold each year. In 2017, approximately 100k new cars were sold in Ecuador.
As evidenced in the data, LAA is transforming itself to being a complete vehicle transactions marketplace, providing a range of Cross Sell products to vehicle buyers.
LAA is pleased to expand its Vehicle Transaction Marketplace through its relationship with GM, which introduces the new revenue model of direct sales on new vehicles. This is the first time that LAA has sold vehicles through its platform and represents an opportunity to participate in the actual car buying transaction. Currently, the vast majority of revenues through LAA platforms currently related to the sale of used cars. Initially phases of the partnership have been conducted on a fixed fee per campaign basis providing incremental revenues, however an opportunity exists to develop the revenue model into a percentage value of vehicle basis.
LAA is hoping their Cross Sell revenue stream will keep seeing growth. Cross Sell revenue has continued to grow in Mexico after their launch in mid-July up to 40%.
SOURCE Latam Motors
Edited by M. Hunt
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