Maruti Suzuki with around 49 percent of market share in India, now wants to get into used vehicles segment to control and organise business, the Economic Times reported on Tuesday.
By 2020, India's largest carmaker plans to sell about 6 lakh used vehicles annually, which is almost the total new cars sales in India by Tata Motors, Volkswagen and Honda put together.
Maruti Suzuki officials believe that the company's pre-owned car vertical 'True Value' has the potential to lead and fulfil the company's goal in the used car space.
"The idea is to create delight for these used car buyers and give them the same experience as a new car and get them hooked on to the Maruti Suzuki brand for life," RS Kalsi, Maruti's executive director for sales and marketing, told ET.
The company thinks the market is growing faster than new cars and plans to give more emphasis in that space. The automaker aims to convert 2 lakh car buyers to prospective customers for new cars every year after 2020.
The company estimated that about 70-75 percent of their used-car buyers upgrade to new vehicles within 12-24 months.
After 15 years of run, Maruti Suzuki went for a major revamp of their True Vale platform. Earlier this month the company has termed the transformation process True Value 2.0 and it aims to make pre-owned cars more attractive and transparent for our valued customers. The network currently has 1,132 outlets across 880 cities so far.
Maruti Suzuki will gain from the revamped TrueValue sales platform that will bring in new first-time car buyers. On the likelihood of higher taxes, it is too early to gauge the visible impact, but eventually a marginal price increase will be absorbed by the market, Kalsi told ET.
Even after efforts made by Maruti and Mahindra & Mahindra to provide method and structure in the business, the used car market still remain unorganised. By selling 36 lakh used cars during the financial year 2017, the company's used car sales outclass their new car sales.
Going forward, the company aims to come up with 150 new standalone True Value outlets, which is expected to expand the platforms up to 300 outlets in the near future.