Chinese carmaker Geely has launched an online store on Taobao and it's proving to be a smart move. 300 cars were sold within a minute. At car dealerships, it usually takes two weeks to sell that many.

300 Geely Panda models were put on Taobao for a group purchase. A 15 percent discount was offered, and other bonuses sweetened the deal. The sale started on the website at the stroke of midnight. And they were gone - in sixty seconds.

Chinese carmaker Geely has launched an online store on Taobao and it's proving
to be a smart move. 300 cars were sold within a minute.

Ms. Li, one Taobao user said "I prepared to buy the car during the night. But when I logged onto the website, they sold out very quickly. It's very popular."

After buying online, the new car owners have to pick up their purchases at traditional dealerships. So the only difference is the advantage of substantial discounts for online buyers.

And analysts say there are other advantages to online selling.

Chinese carmaker Geely has launched an online store on Taobao
and it's proving to be a smart move.

Professor Jiang Xuping, Tsinghua University said "Online sales can also be tailored. Buyers can require auto makers to produce cars according to their needs. This is an advantage of online shopping."

Analysts say online auto sales will have a big impact on traditional car dealerships, as more and more consumers choose to take part in online group purchases. Traditional dealerships could soon transfer their major business to test driving and maintenance, and away from selling cars.

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