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Skoda entry boosts India’s organised used automobile market – analyst | Automotive Business Information
Skoda Auto India has introduced the launch of its licensed pre-owned car gross sales enterprise throughout 9 cities in India, a transfer which might strengthen the organised used automobile market in India.
Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, says the entry of Skoda within the used automobile enterprise is an especially constructive growth for the corporate, because the organised used automobile Indian market holds appreciable potential.
“The organised used automobile market in India is area of interest presently and this may very well be a really sensible strategic transfer for Skoda,” says Agwan.
The transfer is part of Skoda’s ‘India 2.0’ technique. Skoda has mentioned it goals to take a position US$1.17bn between 2019 and 2021 together with its guardian firm Volkswagen Group to make sure sustainable development within the Indian market.
In section II, the corporate plans to roll out the licensed pre-owned programme at its nation-wide dealerships by 2021 and goals to promote over 10,000 used automobiles – which might be 20% of its gross sales by 2022.
“The organised used automobile market in India has presence of some key OEMs together with Maruti Suzuki (True Worth), Mahindra (Mahindra First Alternative), Hyundai (H Promise), Ford Motors (Ford Assured) and Volkswagen (Das WeltAuto),” Agwan factors out.
“Skoda pre-owned car programme won’t be simply restricted to Skoda however all different manufacturers, offered they qualify the requisite inspection and KM pushed standards. These norms are just like enterprise mannequin adopted by different OEMs the place buyer can commerce of their multi-brand used automobile for a brand new automobile from that model after which the used automobile could be resold by means of the corporate’s pre-owned channel. Skoda additionally goals to supply ‘digitalized used automobile shopping for expertise’ to distinguish itself from rivals. This consists of dwell session with technicians, gross sales advisor, and automobile evaluators and digital product demonstration.”
Agwan additionally factors out that used automobiles have excessive uptake in India and the annual quantity gross sales of used automobiles are roughly 1.5–2 instances greater than the brand new gross sales.
“The entry of Skoda in used automobile enterprise makes full sense within the current situation as there’s greater traction in direction of reasonably priced private mobility resulting from COVID-19 pandemic and dwindled public transport throughout the nation,” Agwan says. “Moreover, organised pre-owned channels holds vital untapped potential. Growing presence of established and reputed OEMs/sellers within the used automobile enterprise can wash away the percentages of shopping for a used automobile by means of the unorganised channel and enhance client’s confidence in licensed pre-owned automobiles.”