PlatOn and China’s Mercedes Benz to Integrate Blockchain in the Billion Dollar Used Car Marketplace
PlatOn, a blockchain service company, announced the development of a blockchain platform to record and store data for used vehicles in Beijing’s Mercedes-Benz Sales Service Co. Ltd. (BMBS). The platform uses the data to calculate the residual price of the vehicles before sales. Collaboration will be launched in Beijing to bring greater cost-efficiencies and auditability to Beijing’s billion-dollar used car market.
Vehicle Residual Value Management Platform
The press release on Cointelegraph on August 29 confirms PlatOn is working on a new blockchain based solution – Vehicle Residual Value Management Platform – for its clients in China. The network will collect data across the vehicle industry in China to optimize and automatically calculate the price of used vehicles in the country.
PlatOn’s VRVMP will further integrate more car dealership deals across the country once the integration to BMBS is complete. The platform will further allow users to track the residual value of a used vehicle across its lifetime.
The Chinese billion dollar Used car market
China currently faces a backlog of used cars in the country – and the number is increasing. The influx of new technologies in the country (electric cars and driverless cars) is quickly shaping up the overall automotive industry. Users are buying new tech cars leaving their old used vehicles with a narrow market to sell off the assets.
China currently has a billion dollar marketplace for used vehicles will over six million used cars sold in the first half of 2019 alone. The CSO of PlatOn, Ada Xiao, spoke on the launch of the VRVMP system highlighting the benefits its blockchain system will bring, not only to Beijing’s Mercedes Benz Sale Store but the overall used car market.
“With over 6.5 million used cars in China traded in the first half of the year alone, we hope that our collaboration with BMBS will highlight the need for more sophisticated data collection systems to accurately monitor the value of the vehicles comprising China’s substantial used car market.”
Vehicle industry in blockchain
The vehicle industry is gradually adopting blockchain technologies to ease production and sales data. On Aug 4, Volvo – the Swedish Car manufacturer – announced the company is integrating blockchain to aid the production of its electric vehicles via recycled cobalt.