The Hindu Business Line : GM plans foray into used car biz

Mr Ankush Arora, Vice-President, Market and Sales, said that the company will enter the used car market early next year; it is currently in a tie-up with Automart India and the joint venture has been a successful one.

The company is yet to give a name to the new business as plans are still in progress.

Some GM dealers in India are Automart India dealers too. They know the workings of the used car business and necessary training will be imparted so that they are able to forge ahead in this business in the shortest time possible.

GM will be following in the footsteps of Toyota Kirloskar, Hyundai and Tata Motors, which recently decided to foray into the used car business.

GM has been in the market since 1996 when the first offering, the Opel Astra, was launched in India.

The company has offered several variants of Opel and Chevrolet models, which could be up for grabs in the used car market.

In order to retain existing GM customers, the company has introduced a loyalty package for customers who wish to trade their existing models for an Aveo, SR-V, Tavera or Optra, under which the owners will get Rs 20,000, Rs 10,000, Rs 10,000 and Rs 20,000 respectively.

This scheme is available across all authorised dealers nationwide.

According to industry experts, the used car business is at least twice as big as new cars and is largely an unorganised one.

With more and more auto players entering the market, the ratio is slowly reversing.

Various parameters like strict evaluation of cars through a stringent 121- point evaluation process, correct and clean papers, official warranty, competitive pricing and continuous supply of spares for discontinued vehicles make it a viable for prospective customers to opt for the organised sector rather than the grey market.

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