but has the Indian consumer moved beyond conventional local second-hand car dealers? By Pawan Chabra
It was always there in the mind of Aryan Oberoi, 29, (working as an Area Sales Manager with a MNC bank) to buy a car for his beloved wife. But then that was before the slowdown blues hit the market. However, now that he genuinely feels that the economy is out of the woods, his plans are back on track again. But hey, not exactly how he thought earlier. After losing a sizable amount of money in the stock market and still waiting for this years increment, he is now considering options of buying a pre-owned vehicle instead of his original plan to buy a brand new A2 segment car (entry-level hatchback). Not to mention the long-waiting lists in this particular segment too has contributed to Oberoi’s change in decision.
However, deciding to buy a pre-owned car, now he is face to face with a new dilemma. As per him, “Buying a pre-owned car makes more sense for me at the moment. But I am still confused between the company certified pre-owned showrooms and the local car dealers.” But he is not the only one, there are many like Aryan who are facing the same dilemma of choosing between the certified and the local car dealers, showing that the neighborhood second-hand car dealers still play a vital role in Indian consumers’ minds. On the other hand, the big wigs of the Indian automotive industry are jumping in to the pre-owned cars arena with all guns blazing, behaving as if the Indian consumers are just waiting for them. With the two ends responding differently, has the Indian consumer started to move beyond the conventional local second hand car dealer, remains the biggest question to be asked?
The concept of certified pre-owned cars is not new to the country as Maruti’s True Value was launched as early as 2001. And without any doubt, the market leader of the Indian automotive industry, Maruti Suzuki, also holds the same position in the pre-owned segment. In fact, Maruti’s True Value has the largest network in the industry holding a mind-boggling 318 outlets in 186 cities. The other big names operating in the industry are M&M’s First Choice, Honda’s Auto Terrace, Toyota’s U Trust Toyota and GM’s Chevrolet OK, who are super active currently in their efforts to make pre-owned cars a significant contributor to the top-line of their company. Moreover, the tussle between BMW and Mercedes Benz is now all set to enter the pre-owned segment. BMW, which has no presence in the used car segment so far, will be launching its second hand car arm by next year in competition to Mercedes’ already existing pre-owned car arm.
However, of late, the point of attraction has been Hyundai Motors India Limited (HMIL). The company which launched Hyundai Advantage in 2006 with the aim to cater to the needs of the customers, with 6 dealers across 6 prominent locations in India is today accessible to around 69 operational dealers across 49 locations in India. Add to it the fact that the company now aims to take the number up to 108 dealers across 59 cities by the end of 2009 itself and then to 200 in another 12 months. “We want to aggressively focus on Hyundai Advantage, as it will not only help us retain our old customers through exchange and upgrade schemes, but will also make an interesting business proposition given the phenomenal market for used cars in India,” explains Arvind Saxena, Senior-VP – Marketing & Sales, HMIL. Saxena further added that there are around 1.3 lakh vehicles being sold in the organised pre-owned segment every year and the number is expected to grow by many folds going forward. But HMIL is not alone which is expecting a surge in demand in the pre-owned car market. GM India, which launched the Chevrolet OK programme in April this year, has already surpassed its targeted figure of 500 vehicles in the current calendar year by selling around 620 vehicles by the end of October. “We launched our pre-owned car business in April 2009 with five outlets. The company now has 22 outlets and by December 2009, we propose to have 30 Chevy OK outlets across the country. The Indian consumer is evolving with the time and the popularity of certified pre-owned car showrooms in the country is increasing very fast,” avers P. Balendran, VP-Sales, GM India.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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It was always there in the mind of Aryan Oberoi, 29, (working as an Area Sales Manager with a MNC bank) to buy a car for his beloved wife. But then that was before the slowdown blues hit the market. However, now that he genuinely feels that the economy is out of the woods, his plans are back on track again. But hey, not exactly how he thought earlier. After losing a sizable amount of money in the stock market and still waiting for this years increment, he is now considering options of buying a pre-owned vehicle instead of his original plan to buy a brand new A2 segment car (entry-level hatchback). Not to mention the long-waiting lists in this particular segment too has contributed to Oberoi’s change in decision.
However, deciding to buy a pre-owned car, now he is face to face with a new dilemma. As per him, “Buying a pre-owned car makes more sense for me at the moment. But I am still confused between the company certified pre-owned showrooms and the local car dealers.” But he is not the only one, there are many like Aryan who are facing the same dilemma of choosing between the certified and the local car dealers, showing that the neighborhood second-hand car dealers still play a vital role in Indian consumers’ minds. On the other hand, the big wigs of the Indian automotive industry are jumping in to the pre-owned cars arena with all guns blazing, behaving as if the Indian consumers are just waiting for them. With the two ends responding differently, has the Indian consumer started to move beyond the conventional local second hand car dealer, remains the biggest question to be asked?
The concept of certified pre-owned cars is not new to the country as Maruti’s True Value was launched as early as 2001. And without any doubt, the market leader of the Indian automotive industry, Maruti Suzuki, also holds the same position in the pre-owned segment. In fact, Maruti’s True Value has the largest network in the industry holding a mind-boggling 318 outlets in 186 cities. The other big names operating in the industry are M&M’s First Choice, Honda’s Auto Terrace, Toyota’s U Trust Toyota and GM’s Chevrolet OK, who are super active currently in their efforts to make pre-owned cars a significant contributor to the top-line of their company. Moreover, the tussle between BMW and Mercedes Benz is now all set to enter the pre-owned segment. BMW, which has no presence in the used car segment so far, will be launching its second hand car arm by next year in competition to Mercedes’ already existing pre-owned car arm.
However, of late, the point of attraction has been Hyundai Motors India Limited (HMIL). The company which launched Hyundai Advantage in 2006 with the aim to cater to the needs of the customers, with 6 dealers across 6 prominent locations in India is today accessible to around 69 operational dealers across 49 locations in India. Add to it the fact that the company now aims to take the number up to 108 dealers across 59 cities by the end of 2009 itself and then to 200 in another 12 months. “We want to aggressively focus on Hyundai Advantage, as it will not only help us retain our old customers through exchange and upgrade schemes, but will also make an interesting business proposition given the phenomenal market for used cars in India,” explains Arvind Saxena, Senior-VP – Marketing & Sales, HMIL. Saxena further added that there are around 1.3 lakh vehicles being sold in the organised pre-owned segment every year and the number is expected to grow by many folds going forward. But HMIL is not alone which is expecting a surge in demand in the pre-owned car market. GM India, which launched the Chevrolet OK programme in April this year, has already surpassed its targeted figure of 500 vehicles in the current calendar year by selling around 620 vehicles by the end of October. “We launched our pre-owned car business in April 2009 with five outlets. The company now has 22 outlets and by December 2009, we propose to have 30 Chevy OK outlets across the country. The Indian consumer is evolving with the time and the popularity of certified pre-owned car showrooms in the country is increasing very fast,” avers P. Balendran, VP-Sales, GM India.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here
Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM: An intriguing story of growth and envy
Prof Arindam Chaudhuri of IIPM on MF HUSAIN
IIPM Related Links
Detail of all IIPM branches
IIPM - Admission Procedure
IIPM, GURGAON
Exclusive In chat with Society Magazine - Prof. Arindam Chaudhuri
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