With this plant, Cavaque wants to capture at least 5% of the used car market in Colombia, which would mean selling 5,000 cars per month. The location will process 2,500 vehicles per month and will require an investment of $2.1 million.
Bogota, Colombia, May 18, 2023.- Poplar The Mexican platform specializing in the sale of used cars has inaugurated a vehicle reconditioning plant in Colombia, which aims to Capture at least 5% of the used car market in country.
According to Luis Eduardo López, manager of fungi in Colombia, the plant, which has a With a surface area of 16,900 square meters and a capacity to process 2,500 cars per month, it required an investment of US$2.1 million.
Since launching in Colombia in March last year, Kavak has experienced significant growth in the South American country following investments.US$40 million investment in the region’s market. Colombia is the company’s third largest market in the region, competing with Argentina. According to López, the used car market in Latin America is one of the most important 1.2 million used vehicles are transacted each year,
The aim of the fungi in Colombia is to reach at least 5% of the used car market in the country, Which will translate into sales of over 5,000 cars a month in the future, Currently, more than 90% of used vehicle transactions in Colombia are done directly between buyers and sellers unofficially and without after-sales support, which represents a risk to vehicles and buyers.
Kavak, which has a presence in 10 countries in the region, offers a Inventory of about 500 vehicles in Colombia, The platform is estimated to cost approx. 8,700 million dollars and has the financial backing of SoftBank of Japan.
Despite the weak macroeconomic context in the region, Kavak has demonstrated its commitment to its development and expansion. Although the manager, López, does not consider a change in growth targets at this time, he does not rule out the possibility of seeking new rounds of investment in the future, depending on the pace and direction of the company’s growth.
