‘Used-car market set for robust growth’
Kochi: Purchase of a used car is no longer socially frowned upon in India, thanks to lifestyle changes. Constant upgrading of vehicles, affordability, pricing and easy finance availability have contributed a lot towards garnering a good chunk of business in the used car market, says Nagendra Palle, CEO, Mahindra First Choice Wheels Ltd.
However, the need is to enhance the ratio of used cars vis-a-vis new ones in the country which is around 1.2:1, against 3:1 in mature markets such as the US, he said.
Palle, who was here to open the 19th dealership of the company in Kerala, told reporters that digital marketing will play a major role in the growth of the used car market, thereby benefiting the organised segment in the industry.
The used market with an estimated three million union units is already bigger than the new car market in India. Of this, the contribution of the organised sector is hardly 15 per cent, even as the market is growing at a faster pace.
At a time when the new car market has shrunk by 3-4 per cent due to downturn in vehicle sales, he said, the company’s business registered a 40 per cent growth in the current year.
He said the multi-brand certified used car company is looking at 35 per cent growth in business in the next financial year with the opening of 100 more outlets. The number of dealerships will touch 350 by the end of FY 14 from the current 328.
The company had sold 60,000 units so far this year. Kerala is a strategic market for Mahindra First Choice Wheels and the size of the used car market in Kochi is 500 cars a month against 8,000 cars across the State. The number of dealership outlets will touch 25 in FY 14, he added.