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N. Ramakrishnan

CHENNAI, Jan. 10

MARUTI Udyog Ltd has decided to relax both the age of the cars and the mileage that they have logged for them to be sold under its branded pre-owned car business, Maruti TrueValue.

Cars up to seven years old that have logged up to one lakh km can now be sold or bought through authorised Maruti TrueValue outlets, according to company sources. Hitherto, only cars that were up to four years old and had clocked up to 60,000 km could be sold through this business.

The move is expected to have wide-ranging impact on the market for new as well as pre-owned cars, according to industry experts. They point out that it will widen the choice for existing Maruti customers and encourage them to upgrade their vehicles.

It may be recalled that during an interaction with journalists in Chennai in December, Mr Jagdish Khattar, Managing Director, Maruti Udyog, had said the company was considering relaxing the conditions for selling cars through the pre-owned car business considering the long waiting list of people wanting to buy cars from the TrueValue outlets.

Maruti's decision is expected to reduce this waiting list substantially. At the same time, customers who could not afford a four-year-old car will now have the option of buying a car as they can get one that is up to seven years old with guarantees and from a company authorised outlet.

Under the TrueValue scheme, designated engineers from Maruti at the TrueValue outlets conduct a 120-point quality check for every vehicle that comes for sale. Cars bought at the TrueValue outlets are refurbished at authorised workshops using the latest equipment. Another comfort for a buyer at the TrueValue outlet is that only genuine parts are used at these workshops.

Maruti launched the pre-owned car business 15 months back in Bangalore and Delhi. The TrueValue outlets are available in 13 cities and the company plans to cover 20 more cities by March 31. Ultimately, the company will like all its dealers to get into the used car business as it gives them another revenue stream.

According to the company sources, Maruti TrueValue has over 4,000 customers through 16 exclusive outlets. The TrueValue cars come with a warranty and free services. The bona fide of both the seller and buyer of a car at the TrueValue outlets is verified to ensure that neither party is put to inconvenience as a result of the transaction.

Company officials point out that the used car market is about 2.3 times the new car market in the US and 1.3 times in Japan. In India, it is about the same size of the new car market. In the next five years, Maruti expects the used car market to double in volumes.

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