Hyundai calls new biz `Hyundai Advantage'
Mayur N. Shah
Mumbai, July 28
Two major carmakers are planning to enter used car market. Tata Motors and Hyundai Motor India have initiated pilot projects for this segment.
While Hyundai calls the new business, `Hyundai Advantage', Tata Motors is still scouting for a brand name. Mr Praveen Kadle, Executive Director - Finance and Corporate Affairs, Tata Motors, said that the operations of the new business would be part of the company's integral operations and therefore no division or subsidiary will be created specifically for it.
Mr G. Sanjay, Deputy General Manager, Marketing and Sales, Hyundai Motor India, said that the company was working on the used car business as a pilot project and zeroed in on cities such as Bhubaneshwar, Thrissur and Hyderabad as promising ones. Tata officials said that the new business offering would help promote and penetrate their brand in the semi-urban and rural market.
According to industry analysts, the used car business is getting more organised with players like Toyota entering the market. The used car business is estimated to be two-three times that of the new car market and is governed largely by the unorganised grey market. With more and more auto players entering the market, the ratio is slowly reversing.