Toyota Kirloskar Motor to enter the used-car business
30 August 2007
Chennai: Following Ford and Maruti in their used-car endeavours, Toyota too has decided to move into the used car space. Toyota Kirloskar Motor (TKM) is planning its enter the used car business, ahead of new launches and more brand loyalty schemes.
used car business in India is largely unorganised, though
there have been recent attempts by some vehicle manufacturers
to set up their own-brand outlets, which will add Toyota
to the list over the next couple of months.
Ford''s used car programme, Ford Assured, and Maruti''s True Value have seen good success in not just profiting from the used car business, but also extending brand reliability and customer loyalty.
However, organised used-car dealers face a much more difficult sales pitch, as customer expectations are high while they continue to be unwilling to pay a premium on the vehicle, unless they see a considerable value-add in buying the car.
Market sources indicate that the first outlets of Toyota''s ''You Trust'' are most likely to open in Delhi, Bangalore, and Chennai, and would probably be owned and operated by the company''s new car dealers in these cities.
The used-car outlets would offer services such as evaluation and trading-in of customer''s existing cars, and would cater primarily to buyers looking for a certified pre-owned car that will serve as an upgrade.
The outlets are expected to be perform independent of the new car dealerships, but would be linked to them for after-sales support.
They are expected to employ company trained engineers who would follow a pre-programmed inspection and certification process designed to offer buyers improved reliability, while computing the price for the used car.
to the programs of competing car companies, the dealership-cum-workshop
would also probably offer the used-car buyer a post-purchase
warranty (of usually a year), and/or free services during
a limited period.