The optimism of the giants is well supported by the handful of facts and figures. The size of the used-car market in India is estimated at about 10 lakh units per annum, and it is largely fragmented and unorganised. Going by experts claim, the share of the organised market in this segment is just 10% while the balance is shared by unorganised dealers (30%) and the biggest threat to the organised sector, personal dealings between the buyers and sellers (60%). Shashank Srivastava, CGM-Marketing, Maruti Suzuki avers, “The second hand car dealers are not the only threat to the certified pre-owned car dealers as most of the transactions happen on one to one basis.” However, the top honchos of the industry, like Jagdish Khattar, the ex-MD of Maruti Suzuki and CMD of Carnation Auto, expect the organised pre-owned segment to grow in leaps and bounds in the time to come. Set to try its luck in the arena, Khattar’s Carnation, which started a pilot project of selling used cars in Mumbai in August this year, is now all set to enter destinations like Cochin and Hyderabad by the end of this month. Khattar points out, “Awareness is only and the biggest challenge that I see in the used car segment. But as time will pass, the awareness will automatically increase among the buyers.”
However, the problem for the local pre-owned car dealers doesn’t end here. J.D. Power’s Used Vehicle Market Report revealed that the Internet shopping has reached parity with visits to dealer lots as the primary method for buyers to locate used vehicles globally. The report went further to find out that the percentage of used-vehicle buyers (in the US) dependent on Internet to locate vehicles for sale has increased from 40% in 2008 to 46% in 2009. “Internet shopping provides prospective buyers with the opportunity to search through enormous amounts of specific vehicle information without even leaving home, allowing for a more efficient medium of matching buyers with unique used vehicles in the market. In light of this, dealers should expect the Internet to continue to increase in importance among used-vehicle shoppers and adjust their online presence accordingly,” says Arianne Walker, Director- Marketing, J.D. Power and Associates. But does the situation in India show any such trend? Well, looking at the number of automotive websites like Carwale.com, Gaadi.com, Indimoto.com et al that are mushrooming thick and fast, expectations are high that soon the Indian pre-owned car industry will follow the western trends. Affirms Udit Bhandari, CEO, Indimoto.com, “The usage of websites for purchasing vehicles is increasing very fast in the country and I believe it has a lot of potential.”
Indian market, as said, is very different and versatile in the manner it operates. Today, the Indian consumers have moved an inch away from the conventional local car dealers towards the organised players, but when it comes to meeting the global trend, well the day is still far away. Someone has rightly said, ‘In the US people drive from the left, in India people drive on what’s left.’ Unlike the US, there is a dearth of websites like Kelly blue book in India (which provide fair valuations for the pre-owned cars) providing local dealers an opportunity to play foul. Also there is always a high possibility of mileage tampering due to the lack of a centralised database. Still people like Aryan do not subside the idea to peep at the neighborhood used car dealer’s collection before they buy one. Common guys, at least give some value to what is called an authentic warranty by the authorised dealer!
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here
Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM: An intriguing story of growth and envy
Prof Arindam Chaudhuri of IIPM on MF HUSAIN
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However, the problem for the local pre-owned car dealers doesn’t end here. J.D. Power’s Used Vehicle Market Report revealed that the Internet shopping has reached parity with visits to dealer lots as the primary method for buyers to locate used vehicles globally. The report went further to find out that the percentage of used-vehicle buyers (in the US) dependent on Internet to locate vehicles for sale has increased from 40% in 2008 to 46% in 2009. “Internet shopping provides prospective buyers with the opportunity to search through enormous amounts of specific vehicle information without even leaving home, allowing for a more efficient medium of matching buyers with unique used vehicles in the market. In light of this, dealers should expect the Internet to continue to increase in importance among used-vehicle shoppers and adjust their online presence accordingly,” says Arianne Walker, Director- Marketing, J.D. Power and Associates. But does the situation in India show any such trend? Well, looking at the number of automotive websites like Carwale.com, Gaadi.com, Indimoto.com et al that are mushrooming thick and fast, expectations are high that soon the Indian pre-owned car industry will follow the western trends. Affirms Udit Bhandari, CEO, Indimoto.com, “The usage of websites for purchasing vehicles is increasing very fast in the country and I believe it has a lot of potential.”
Indian market, as said, is very different and versatile in the manner it operates. Today, the Indian consumers have moved an inch away from the conventional local car dealers towards the organised players, but when it comes to meeting the global trend, well the day is still far away. Someone has rightly said, ‘In the US people drive from the left, in India people drive on what’s left.’ Unlike the US, there is a dearth of websites like Kelly blue book in India (which provide fair valuations for the pre-owned cars) providing local dealers an opportunity to play foul. Also there is always a high possibility of mileage tampering due to the lack of a centralised database. Still people like Aryan do not subside the idea to peep at the neighborhood used car dealer’s collection before they buy one. Common guys, at least give some value to what is called an authentic warranty by the authorised dealer!
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here
Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM: An intriguing story of growth and envy
Prof Arindam Chaudhuri of IIPM on MF HUSAIN
IIPM Related Links
Detail of all IIPM branches
IIPM - Admission Procedure
IIPM, GURGAON
Exclusive In chat with Society Magazine - Prof. Arindam Chaudhuri
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