Toyota Kirloskar to enter second-hand car market

The used-car market seems to be hotting up with every passing day. After Maruti, Hyundai, Ford, Mahindra, Honda and Tata, it is now the turn of Toyota Kirloskar Motor to enter the used -car market.

The Bangalore-based joint venture between Toyota Motor Corporation and the Kirloskar group has already initiated pilot projects in at least four cities, including Hyderabad and New Delhi.

Deputy Managing Director Masahiko Kawabata said, "We will be beginning to function in the used-car business by the end of this year. We have already begun talks with our dealers. "

Kawabata, however, declined to comment further on the investment that would go into the business, adding that it would depend on the dealers. The automobile company had not yet decided upon the name of the business, said Kawabata, adding, "We have yet to apply for registration."

The used-car market is dominated by informal deals, with the organised sector accounting for only 20 per cent of the business through players such as Maruti (True Value), Hyundai (Advantage), Ford (Assured), Mahindra (Automart India) and Honda (Auto Terrace).

It is believed that the Mukesh Ambani-controlled Reliance Retail will possibly enter the market too. Moreover, just recently Tata Motors announced its plans to enter the used-car market.

Toyota Kirloskar Motor sold 5,411 units of Toyota Innova, 1,083 units of Toyota Corolla and 197 units of imported vehicles, Toyota Camry and Toyota Prado Landcruiser, in March 2007.

Recently, the company announced the opening of a technical institute near Bangalore to provide training in automotive technology to those students who cannot afford higher education.

"We are looking for an annual intake of 70-80 students at our institute for a three-year course," said Kawabata.