Tata Motors might enter the second hand car market in India

askicode · 9th April 2007, 09:52

Source: 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.

GTO · 11th April 2007, 10:31

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.

theMAG · 11th April 2007, 11:41

Quote:

Looks like TATA too is going the Honda way

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.

rahul_intlad · 11th April 2007, 11:50

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.

chanapli · 11th April 2007, 12:00

Quote:

Originally Posted by askicode

Looks like TATA too is going the Honda way.

Never knew Honda is in to used car market. May be I missed somewhere.

esteem_lover · 11th April 2007, 12:16

Quote:

Originally Posted by GTO

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.

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 ???

spadival · 11th April 2007, 15:58

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.

esteem_lover · 11th April 2007, 16:20

Quote:

Originally Posted by spadival

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.

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 ?

spadival · 12th April 2007, 14:48

Quote:

Originally Posted by esteem_lover

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 ?

U meant the local used car dealer or junk yard dealer ?

benbsb29 · 12th April 2007, 14:56

The way many of these Indicas/Indicabs are being abused by the cabbies, most of them would end up in the junk yards.

askicode · 12th April 2007, 16:37

There was a news sometime last month about Honda getting into used car business. They have a programme called Auto Terrace which handles this.

More on this on another thread http://www.team-bhp.com/forum/indian-car-scene/22680-honda-take-mul-used-cars.html

Zappo · 12th April 2007, 18:55

Quote:

Originally Posted by askicode

There was a news sometime last month about Honda getting into used car business. They have a programme called Auto Terrace which handles this.

More on this on another thread http://www.team-bhp.com/forum/indian...used-cars.html

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).

askicode · 13th April 2007, 10:13

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.

mithun · 17th April 2007, 05:14

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 ?

askicode · 17th April 2007, 09:12

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

9th April 2007, 09:52	#1
askicode BHPian Join Date: Mar 2006 Location: Bangalore Posts: 174 Thanked: 73 Times	Tata Motors might enter the second hand car market in India Source: 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.
	() Thanks

11th April 2007, 10:31	#2
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,503 Thanked: 300,635 Times View My Garage	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.
	() Thanks

11th April 2007, 11:50	#4
rahul_intlad Senior - BHPian Join Date: Aug 2006 Location: Pune Posts: 1,579 Thanked: 4 Times	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.
	() Thanks

11th April 2007, 15:58	#7
spadival Senior - BHPian Join Date: Oct 2004 Location: Melbourne, AU Posts: 1,773 Thanked: 26 Times View My Garage	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.
	() Thanks

12th April 2007, 14:56	#10
benbsb29 Team-BHP Support Join Date: Nov 2006 Location: Brisbane Posts: 9,968 Thanked: 13,210 Times View My Garage	The way many of these Indicas/Indicabs are being abused by the cabbies, most of them would end up in the junk yards.
	() Thanks

12th April 2007, 16:37	#11
askicode BHPian Join Date: Mar 2006 Location: Bangalore Posts: 174 Thanked: 73 Times	There was a news sometime last month about Honda getting into used car business. They have a programme called Auto Terrace which handles this. More on this on another thread http://www.team-bhp.com/forum/indian-car-scene/22680-honda-take-mul-used-cars.html
	() Thanks

13th April 2007, 10:13	#13
askicode BHPian Join Date: Mar 2006 Location: Bangalore Posts: 174 Thanked: 73 Times	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.
	() Thanks

17th April 2007, 05:14	#14
mithun BANNED Join Date: Jan 2006 Location: Cochin Posts: 2,195 Thanked: 268 Times	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 ?
	() Thanks

17th April 2007, 09:12	#15
askicode BHPian Join Date: Mar 2006 Location: Bangalore Posts: 174 Thanked: 73 Times	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
	() Thanks