The Hindu Business Line : Toyota Kirloskar Motor to launch used car business

Brand Boosters
Used car outlets such as Ford Assured and Maruti True Value have been relatively successful in both extending the brand reliability and for ensuring loyalty.
Organised used dealers face a more difficult sales pitch since customer expectations are high and they tend to be unwilling to pay a premium unless considerable value is added to the used car

S. Muralidhar

Chennai, Aug.29 Toyota Kirloskar Motor (TKM) is planning to enter used car business soon ahead of new launches and more brand loyalty schemes. The largely unorganised pre-owned cars business in the country has seen a few vehicle manufacturers attempting to set up own-brand outlets during the last few years. Toyota is likely to mark its entry into this segment in the next couple of months.

According to market sources, the first outlets of Toyota You Trust are likely to be opened in Delhi, Bangalore, and Chennai. They are likely to be owned and operated by the company’s new car dealers in these cities.

Offering services such as evaluation and trading-in of the customer’s existing car, the Toyota You Trust outlets will primarily cater to buyers looking for a certified pre-owned car that will serve as an upgrade. The outlets are expected to be independent from the existing new car dealerships in the city, but will be linked to for after-sale support.

The outlets are expected to employ company trained engineers who will follow a pre-programmed inspection and certification process for offering buyers improved reliability and for pricing the used car. The dealership-cum-workshop that runs the used car outlet will also be able to offer a post-purchase one-year warranty or free services during a limited period for the pre-owned car buyer.

TKM is busy expanding its dealership count in Tier I and Tier II cities and the diversification into the used car business is expected to be a precursor to its planned roll out of at least three new models. Though Toyota continues to be tight-lipped about the specific models that are India-bound, market sources say that the new Corolla Axio and the Fortuner could be launched next year.

The proposed new India-specific small car is also expected to be launched in 2010, by which time Toyota is targeting a market share of 10 per cent. With a larger product portfolio in the next two years, a well-entrenched branded used car business would come in handy for Toyota to ensure customer retention and a wider market reach.

Used car outlets such as Ford Assured and Maruti True Value have been relatively successful in both extending the brand reliability and for ensuring loyalty. Though there are a number of independent local used car businesses that are popular in many Indian cities, the segment continues to be largely unorganized. Organised used car dealers face a more difficult sales pitch since customer expectations are high and they tend to be unwilling to pay a premium unless considerable value is added to the used car .

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