India has one of the biggest used car markets in the world and nearly 70 percent of it lies in the unorganized segment. Now the used car dealers across India have become wary due to the upcoming launch of Nano on the Indian roads. The used car dealers have slashed their car prices by nearly 30 percent to offer competitive prices to the customers. They want to compete with the Nano price where the user gets a brand new car for the price of an old used car.
Used car dealers have slashed the prices of mid-sized cars by nearly 25 percent and that of small cars by 20 percent owing to the upcoming launch of Nano in the market. Four to Five year old Ford Ikon, Maruti Esteem, Opel Corsa or Fiat Sienna is readily available at one lakh.
“When the Nano gets launched, the A and B segment (small) cars will see a further correction. Currently, the price erosion is lesser in the A and B segment used cars,” said Vinay Sanghi, CEO, Mahindra First Choice Wheels.
Car manufacturers had earlier dropped prices of their new small cars to clear the inventories but recently some of the automobile manufacturers had hiked their car prices once again citing input costs and dollar fluctuations as the main reason for the price hike. The full Nano impact on the car industry still remains to be seen.
