A study shows an impressive performance in time to come for pre-owned car market. It might possible that two pre-owned car will be sold against one new car. Last year data released by SIAM, witnessed sales of 2.68 million units of new passenger cars, while used car sale overtakes it by almost 1.2 times at 3.22 million.
One of my friend, Bhawin having family of 5 members decide to buy a car with budget of Rs. 4,50,000. He show many new cars including i10, alto, Eon, Wagen R etc. but it didn’t work in his mind. Finally he went to online portal Carworld1.com, a leading used car online portal.
Within a few minutes of surfing, he found a car he actually looking forward to buy. He found the mint condition, top end model of Ford Figo, just 6 months used and driven for only few hundred kilometers. So car buyers like Bhawin can reduce the cost of good cars up to a lac or two by just compromising on word a “new” car, and which is really practical thinking in the world of high cost of living.
Today almost 18 percent of the market share in used car market have been captured by the organized sector which was around 11 percent 5 years ago. Mr. JagdishKhattar, Former Director, Maruti Suzuki started Carnation Auto, a multi-brand used car chain, is all set to have 200 showrooms by 2015-16.
Mahindra First Choice is adding about 100 outlets a year to tap into growing demand. The company looks forward to have about 1200 outlets across the country by 2019. The company aims 100000 units of car sales in 2015 instead of target of 65,000 in 2013.
Rajeev Dubey, President-group HR, Corporate Service and after Market & Member Group Executive Board, M&M said, Around 65% of our buyers are first time car buyers with an average of 35 years and 50% of our customers are between 25-34 years of age. But with growing acceptance of used cars, the share of first time buyers within the Mahindra First Choice Wheels enterprise is dropping."
Agreeing to Mr. Rajeev’s statement, MrMayankPareek, COO Maruti Suzuki which owns True Value said “Agreed MayankPareek, COO, Maruti Suzuki which owns True Value: "We witnessed a 7-8% decline in first time buyers in the new car market but the used car business has been a phenomenon this year." Adding further he said, "If we were to see that as a separate business it would be the fourth largest car company in India."
With a 15% growth this year - last year was 19% and the year before another 17-18% -- the new fiscal is expected to bring in "healthy double digit growth for True Value," said Pareek
No comments:
Post a Comment