Reliance is one of the second non-auto makers to enter the used car market. Earlier Mahindra and Mahindra had opened their Mahindra First Choice as the used car outlet. Reliance also made a foray in Jamnagar, Gujarat. Reliance Retail Ltd, a Mukesh Ambani controlled company, is now scouting for land to open its new outlets in Maharashtra and NCR.
“We are now looking at possible sites in Maharashtra and the NCR (national capital region) to open stores in the next three months,” said a Reliance official on the terms of anonymity.
The company is already active in and around Mumbai for its new plans but there is no official report from the company itself. Any questions regarding the same are also unanswered.
The used car market has witnessed new entrants each year. Increased competition, more new small cars, rising inflation, increased car loan interest rates has led to decreased profit margins. The industry resources also tell that it is difficult for a non-automaker to find good used cars and acquire cheap and good quality spare parts.
Nevertheless, after Jamnagar, Reliance Retail Ltd. has already tested waters in Navi Mumbai by opening its Reliance AutoZone. The test run had been done on its employees in Mumbai. Reliance plans to bring in a business model that shall not only sell used cars but also spare parts. It shall also provide repair and servicing facilities to its customers.
Maruti Suzuki already marks its presence with True Value used car outlet and is the market leader. Other players in this segment are Honda Siel Cars India Ltd, Hyundai Motor India Ltd, Ford India Pvt. Ltd and Mahindra and Mahindra Ltd.
