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Flourishing Pre-owned car business!
Auto Industry analysts say that, with advances in technology and a record number of new car models entering the Indian market every year, customers today typically go for an upgrade or exchange within three years of their purchase rather than sticking to the same car for 10-15 years.
Due to the car makers entering the used car business, more customers are attracted in exchanging their old cars to buy the new cars simply because they trust the OEMs. Mr Sunil Gambhir, head of AutoTerrace, the used-car arm of Honda Siel, said there are 117 Honda AutoTerrace outlets across the country and they have sold 4300 pre-owned cars for new cars and liquidated them through various channels. The interesting factor is that, 70 percent cases of customers prove that, they exchange cars only at the time of buying an new car.
Mr. P Balendran, VP, GM India said that GM's Chevy OK is doing a good business which sold/exchanged 1200 cars and targets to sell at least 2500 cars by 2010. As for the volume, Hyundai does around 15 percent of the total sales through those dealers who also have the Hyundai Advantage dealership. Used-car sales,, will grow at the same rate as the new car sales. Santro is the most popular model sold through the exchange programme. This was said by Arvind Saxena, director, sales and marketing at Hyundai Motors India.
Maruti Suzuki's True Value is a very popular used car business firm, because people buy lot of Maruti cars and hence they like to upgrade for a new one through the used car business. In fact, Maruti was pioneer in setting up used car firm than other car makers. With every second car purchased in India, being a Maruti Suzuki car, its obvious that the used car business too attracts buyers through used car exchange programmes.
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