Toyota enters used car market this weekWith the increase in global auto majors seeking space in India, Toyota is launching its used car programme called Toyota You Trust this week.
Apnaloan.com Research Bureau
24 Oct 2007
Global auto majors are also getting interested in India's used car market. International auto majors like Honda, Hyundai and Toyota are all launching their used car programme, according to media reports.
Japanese auto major Toyota's used car programme to be launched this week is called Toyota You Trust. Honda's Auto Terrace and Ford's Ford Assured are also focusing on the used car segment.
In India, the used car market is dominated by Maruti's True-Value Programme. As reported by Economic Times, auto majors are trying to increase their market penetration by selling used cars at a profit.
Exchange offers are the primary reason why leading auto majors enter the used-car market. While Maruti's True Value was a huge success in the market, other players had not fared too well. Ford Assurance is now largely a dealer initiative. Hyundai's used-car business, Hyundai Advantage, rolled out operations last year and is looking at new formats to expand its operations.
According to the Society of Automobile Manufacturers in India (SIAM), the used-car market today stands at 1 million units. The auto industry expects this segment to grow as fast as the passenger car segment. The market in India is primarily un-organised, with the organised players accounting for just 20-25 per cent. As more organised players enter the fray, the market share will increase.
Top used-car dealers across cities are shifting focus to higher-end cars such as Honda Accord and City, Chevrolet Optra, Tavera, Skoda Octavia or Ford Fiesta, which will fetch higher profit margins. Some dealers are planning to tie up with banks such as UTI and Barclays Bank for inventory funding and consumer loans at competitive rates. As customers are increasingly opting for bigger cars, dealers are stepping up warranty and guarantee schemes to attract buyers.