Used cars witnessing the higher growth rate
01 Jan 2009 4:22 PM  by Rameshwar in Indian Car Market ,


Despite the automarket downturn , used cars business is witnessing far higher growth rates and car manufacturers are planning to cash in on the demand.Maruti Suzuki and Hyundai Motors India constitute the bulk of the new car segment in India. Maruti’s True Value , which only deals in used cars nationally , and has cornered at least 10% market share , witnessed about 30% and 22% growth rates during October and November and during
2007-08 , about 1.41-mn used cars were involved in the business. In contrast , Maruti Suzuki India’s new car business saw 8% fall in sales during October 2008 in comparison to the previous corresponding month while during November the fall was 26%. The passenger car industry , on the other hand , witnessed a 1% decline during April-November 2008.

“For True Value , during December , growth in sale of used cars is estimated at about 22%. Hence during October-December , the growth rate is expected to average out to 24-25%. We are facing a situation where demand is outstripping supply and our inventory is under pressure in terms of availability of used cars for sale , ” said True Value chief general manager Ravi Bhatia. Maruti Suzuki has also decided to offer exchange schemes for used cars in its 1400 service stations. These schemes were earlier being offered only at Maruti dealerships. “Existing car owners drop in at service stations and here is where they can get to see used cars and we hope sales and demand of car to pick up further , ” said Mr Bhatia.

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