HANGZHOU, Zhejiang – China’s e-commerce giant Alibaba Group signed a strategic agreement on August 19 with China Grand Auto Services Co., Ltd., one of the country’s passenger vehicle dealers, to set up an O2O online trading platform for used cars, reported Xinhuanet.com.
The used cars will be auctioned on Taobao.com, Alibaba’s online trading platform. Professionals from China Grand Auto will provide online consultancy, arrange customers to see the cars at stores and offer aftersales services, said Zhang Jianfeng, president of Taobao.com.
The O2O trading will be supported first at China Grand Auto’s 30 stores in east China’s Anhui Province and will expand to its 500 stores nationwide.
Alibaba’s branch committed to micro financial businesses will also cooperated with China Grand Auto’s subsidiary All Trust Leasing, China’s largest passenger vehicle leasing company, in auto finance.
China’s used cars currently account for a quarter of the total car trading volume and is expected to occupy a half by 2020, according to He Liming, head of the China Automobile Dealers Association (CADA).