The only cheer in auto sector is in used cars market

Feb 23 2014, 01:08 IST
Comments 0
New car sales are at an all-time low and discounts are at an all-time high. Reuters New car sales are at an all-time low and discounts are at an all-time high. Reuters
SummaryMaruti, the country’s largest car manufacturer, is the best example of this trend.

FY2016 end, the aim is 500 dealerships. Maruti has 540 True Value outlets in over 340 cities, the second-largest network after its own network of new cars.

Another irony of this mismatch between new and used cars is the demand and supply conundrum. While many car makers have been halting production temporarily to correct growing inventories, the used cars business is struggling with a supply crunch. “The availability of used cars is quite poor at present. This is because the new cars segment is seeing a slowdown, which pushes up prices for used cars,” said Jagdish Khattar, founder of Carnation Auto, a multi-brand cars initiative that also deals in used cars.

But this issue could get sorted out as the sector gets more organised, with many web portals such as cartrade.com and biggaddi.com also coming into play. But that’s a story for another day. Right now, the used cars market is a long road of opportunities.

Single Page Format
Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...