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Tata Motors might enter the second hand car market in India
Looks like TATA too is going the Honda way.
Rumors in the market suggest that Tata Motors might be the next big player in the user car segment in India. This network is likely to be managed by the existing Tata Motors dealer network.
However, the company has not revealed any timeframe and investment on the venture.
Often, the margins for used cars are far more than on the new cars. Plus there are better commissions on the finance deals. Dealerships are finding more and more ways to cover their costs, and its not surprising to see Tata (and almost everyone else) with plans to enter this hugely lucrative market segment.
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Looks like TATA too is going the Honda way
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Nice, but I'm wondering abt the market-size for 2nd/3rd hand diesel Indicas that would have run an average of 1 lakh kms.
Having your own second hand section helps in controlling second hand prices too,which if successfully done can boost the image of the company and get better sales for its products.
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Originally Posted by askicode
(Post 409223)
Looks like TATA too is going the Honda way.
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Never knew Honda is in to used car market. May be I missed somewhere.
Quote:
Originally Posted by GTO
(Post 410945)
Often, the margins for used cars are far more than on the new cars. Plus there are better commissions on the finance deals. Dealerships are finding more and more ways to cover their costs, and its not surprising to see Tata (and almost everyone else) with plans to enter this hugely lucrative market segment.
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Very true. There is quite a good markup in the second hand car market & buying from a dealer gives the buyer more confidence.
When did honda get into this ??? :confused:
They wont be selling many second hand Indicas for sure.. Come to think of it, Personally, I have never heard/seen anyone buying a used Indica.
Quote:
Originally Posted by spadival
(Post 411221)
They wont be selling many second hand Indicas for sure.. Come to think of it, Personally, I have never heard/seen anyone buying a used Indica.
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Please visit your local used car dealer. There is a market for everything here in India. When they sell old, non-working PCBs (e waste), why not an used Indica ?
Quote:
Originally Posted by esteem_lover
(Post 411250)
Please visit your local used car dealer. There is a market for everything here in India. When they sell old, non-working PCBs (e waste), why not an used Indica ?
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U meant the local used car dealer or junk yard dealer ? lol:
The way many of these Indicas/Indicabs are being abused by the cabbies, most of them would end up in the junk yards.
Quote:
Originally Posted by askicode
(Post 412162)
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This news last month must have been a related one but it can not be for Honda getting into this business. Auto Terrace was there even 4 years back when I was in Mumbai. I remember there used to be one Auto Terrace location at Andheri (E).
Very true. Auto Terrace was there quite sometime back but now they are strengthening that with a new entirely focussed team to take it forward
According to Financial express
Honda to take on MUL in used cars
Japanese car major Honda is entering the fast growing segment of pre-owned cars and car exchange business that is largely dominated by industry leader Maruti through its ‘True Value’ programme.
“We have had this programme for some time but now we have decided to focus on this aggressively. A specialised team has been formed within the company to take care of this business that will have close interaction with dealers and their marketing teams,” Honda Siel Cars India Senior General Manager Jnaneswar Sen told FE here.
Except TrueValue, every company's used car section is still struggling hard to make a profit !!!
It's not because of the huge Maruti base alone. If that was the case, then Hyundai which is having a considerable base could have succeeded with their Advantage !!!
NOW, what will be the state of Tata since they are unable to provide better A.S.S.for their already existing fleet ?
You are right. TATA A.S.S.is real bad. Further we can expect more of the taxi run Indica's turning up for seconds scale. I was talking to one taxi operator the other day and he was saying that they buy an Indica for the running cost aspect. Run thoroughly for about 1lkh kms and then discard it. They dont even bother of doing repairs since he says that after that many kms the cost of repairs is far higher and is best to go in for a new car. And with his daily running of call center vehicles achieving 1lkh aint a problem
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