Spurred by the response to its foray into used cars business, Maruti Udyog Ltd (MUL) is planning to increase the number of such outlets from 6 to 15 during this year and 18 more next year.
Speaking at the launch of the Maruti True Value pre-owned cars outlet, the sixth in the country and first in Andhra Pradesh, general manager (new business) G C Dwivedi said huge bookings from buyers are underway and Maruti is putting in efforts to source used cars.
Giving a feel of the market size, he pointed out that the ratio of new cars to used cars in India is at present 1:1, while it is 1:3 in the US.
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He said that market dynamics are fast changing given the entry of such a major player as Maruti into the unorganised market of used cars. Transparency, right valuation, value addition, genuine parts and after-sales service by the industry leader would act set a benchmark, thereby arresting gross commoditisation of prices of used cars, he said.
On the other initiatives by Maruti, Dwivedi said fleet management service was being offered for professionals and corporates. Talks are also on for a foray into auto insurance as well, he added.
Bhaskar Murthy, chief executive of Mithra Agencies, which opened the first pre-owned used cars outlet in AP, said that as part of Maruti True Value scheme, used cars are purchased with right valuation either in cash or in exchange for a true value used car or a brand new Maruti car.
There will be a warranty with three free services for one year or up to 15000 km whichever is earlier, he added.