Maruti wants to sell 6 lakh used cars annually
Regardless of the fact that 36 lakh used cars were sold in FY 17, the Indian market of used cars is largely unorganized in nature. However, things are about to change, as India's biggest carmaker, Maruti Suzuki has drawn up plans to sell 6 lakh used vehicles annually by 2020. The Japanese carmaker's TrueValue sales channel would spearhead this initiative. Here's more about it.
What's the plan?
The ambitious target that the Japanese carmaker has set for itself is close to the present combined new-car sales by Tata Motors, Volkswagen and Honda in India. If it manages to consolidate the Indian used car market space, this would generate around Rs. 15,000 crore in sales for the firm. It also plans to create long-standing customer loyalty while working towards the goal.
Why was it needed?
In India, used cars' sales are growing faster than that of new cars. Maruti's executive director, RS Kalsi told ET that their firm wants to make the experience of buying a used car akin to buying a new car. Maruti's TrueValue is, therefore, also being revamped. Post-2020, Maruti wants to convert 2 lakh used car buyers, annually, to prospective customers of new cars.
The bigger picture
According to its estimates, almost 70-75% of TrueValue used-car buyers tend to opt for a new vehicle within 12-24 months. Maruti intends to induct a first-time car buyer into TrueValue and build customer loyalty. So, when these used car owners start looking for a new car, they choose from the models that Maruti has to offer across various segments.
