Chinese firm Alibaba to open a 'car vending machine' next year

Singapore already has a car vending machine, opened by Autobahn Motors last year. Photo / Telegraph

Chinese e-commerce company Alibaba is to open its own car "vending machine" next year in a bid to make buying a car "as easy as buying a can of Coke".

The launch follows used car seller Autobahn Motors' opening of its futuristic 15-storey showroom in Singapore last year, which was billed as the "world's largest luxury car vending machine".

Autobahn's vending machine displays vehicles in 60 slots, with customers on the ground floor able to choose from a touchscreen display the car they wish to see.

The car arrives within two minutes thanks to an advanced system that manages vehicle retrieval.

According to the Financial Times, Alibaba will follow in Autobahn's footsteps with the launch of its own car vending machine. It will allow buyers to browse cars on their smartphones and press the buy button, which then releases the car from a vertical display tower.

US company Carvana also uses vending machine-like towers to sell used cars. In March, it opened an eight-floor structure that holds up to 30 cars in San Antonio, Texas.

Yu Wei, general manager of the automotive division on Alibaba's e-commerce platform, told Alibaba's news service that the era of online car shopping had arrived and the new automotive retail model "will make buying cars as easy as buying a can of Coke".

The vending machine reduces costs - such as storage and staff - for the firm, and taps into the growing demand for luxury goods by China's burgeoning middle classes.

Alibaba plans to plug its vending machines into its online system that incorporates financing and data about a car buyer's credit rating, the FT reports. Buyers with a high enough credit rating from Alibaba's scoring system will be able to drive off in their car after providing a 10pc deposit, paying monthly installments thereafter.