The ongoing liquidity crunch and high interest rates have spelled good times for the used car market in India. The auto financers in India are shying away from lending any new loans to customers in India. This has led the customers to opt for used cars i.e. make a second hand purchase. One or two year old cars are available at extremely attractive and discounted prices.
"In October, sales have increased by as much as 22% over the previous corresponding period," says Maruti Suzuki chief GM (sales support) Ravi Bhatia. "For the first time, the number of cars Maruti TrueValue sold in September 2008 has been more than the number purchased," he added. He is also in charge of Maruti True Value sales in India. Maruti’s second hand car business has jumped 27 percent during the first half of the current fiscal.
Yet another reason for a healthy growth in the used car market is a delay in the launch Tata Nano this year. Ratan Tata’s dream project ran into rough weather this year which delayed the launch of the world’s cheapest car. Tata Nano was supposed to seriously affect the second hand car market in India. The car is now expected to make a serious entry in the Indian market next year.
