While new car sales remain stuck in reverse, sales of used vehicles are driving higher as budget strapped consumers seek deals. Analysts expect sales of previously owned cars and trucks will show sizable sales gains. It’s a good time to be a seller of used vehicles.
According to sales tracking firm CNW Research, sales of used cars and trucks jumped nearly 7 percent in April and almost 8 percent in May. And with that jump in demand, used vehicles are now commanding higher prices.
In a country where a majority of vehicle servicing and used-vehicle business is done in the unorganized sector, this could be a welcome change.
Jagdish Khattar, the man who steered Maruti Suzuki for close to 14 years, on Wednesday announced the launch of perhaps India’s first multibrand sales and service network for all kinds of vehicles. Over the next few months, Khattar will begin retailing used cars at his outlets; a pilot project has already begun in Mumbai.
Khattar added the company is looking to make its own spare parts under the Carnation brand by mid-2010, for which the company has already started to source components from Thailand and Taiwan. “We will be going in for car customisation as well in the future, apart from working on an e-business project,” he added.
Carnation Auto already has auto solutions hubs operational in Mumbai, Chennai, Noida, Amritsar, Hyderabad and Kochi, and plans to open more than 30 by the end of 2009. These auto solution hubs would provide everything a car owner would need to maximize his car ownership experience under one roof. The company will provide a host of products and services, including value-added services like windshield repairs, car detailing, alternate kit fitment, tyre and battery zones.
The company planned to have a service and sales network in 100 locations across India within five years, which was being done through joint ventures as well as company-owned multi-brand auto solution hubs.
Carnation Auto was backed by world-class technology, equipment and IT systems to ensure transparency and optimum service quality.