Pre-owned car business in India still remains a largely unorganised sector with major private players. However, with major auto manufacturers entering the market, the segment is slowly getting organised and it remains to be seen how soon the major car manufacturers start dominating the segment in India.
GM Chevrolet Ok, Mahindra First Choice, Maruti True Value are some of the leading players in the market, while Tata Motors Assured, Honda Siel’s Auto Terrace and Toyota You Trust are some of the emerging strong contenders in the market. Besides offering used cars for sale, another aim of these outlets is to allow people easy access to exchange offers and thus opt for new cars from these manufacturers. Toyota Kirloskar Motors intends to sell at least 20-30 percent of its new small car Etios through these Toyota You Trust outlets where buyers will be able to exchange any brand of old car for a brand new Toyota Etios, getting a deal in return.
“We now have five outlets of Toyota You Trust. Within the next three years, we plan to have 50 outlets. Our aim is to sell 25% of our new cars through Toyota You Trust. We are already selling Innova and Altis through the used car exchange programme. We are expanding our used car outlet footprint, keeping in mind the launch of our compact car, Etios, next year. Toyota You Trust will be one of the major avenues for selling Etios,” said Sandeep Singh, Deputy Managing Director (Marketing) at Toyota Kirloskar Motors.
So far Honda Siel has already exchanged 4,300 pre-owned cars with new Honda models and have liquidated the models through various channels. “AutoTerrace helps the new car department at Honda to present a complete package deal to the customer by buying the used car of the customer,” Sunil Gambhir, head of AutoTerrace, the used-car arm of Honda Siel said.
