30 October, 2007
Used car markets
are popping up across India, with
different players giving the concept a
try. Global auto majors are
increasingly looking for potential
buyers of their vehicles in India’s
used car market.
The used car market in the country,
which is dominated by Maruti’s
TrueValue program, has started to see
more participation from the likes of
Toyota, Honda, Hyundai, and Ford.
While Japanese auto major Toyota is
hitting the used car mart with its
Toyota You Trust brand, it will have
stiff competition from Honda’s Auto
Terrace, Hyundai’s Hyundai Advantage
and Ford’s Ford Assured.
Toyota’s You Trust venture is expected
to be rolled out at leading
dealerships across the country in
end-October 2007 with the company
having identified a handful of dealers
who will invest and set up operations
for used cars.
Meanwhile, Honda has formed a new team
to focus on its used-car program
called Auto Terrace. The company’s
used-car program, that is currently
running in a small way, is expected to
be accorded an added focus.
The reason for the increased focus on
the used car mart is the exchange
offers. According to reports, exchange
offers are the primary reason why
leading auto majors enter the used-car
market. Eyeing a bigger share of the
used car market, these major companies
are also set to sell pre-owned cars at
a profit.
Statistics say that the used-car
market stands at a huge one million
units. In such a scenario, it has been
felt that the auto industry expects
the used car industry would grow as
fast as the passenger car segment.
Estimates are that, out of the 2 lakh
units in the organized market, Maruti
sells more than 90,000 used cars units
through its True Value network.
Maruti’s True Value has met with a
huge success and acceptance in the
market. Now with the entry of Ford
Assurance, Hyundai Advantage, along
with Honda and Toyota’s ventures, it
is likely that the space gets to see
some positive competition.
