Ford India is all set to enter the used car market with opening of multi-brand outlets across the country. This is part of the company’s strategy to enhance customer relationship across product portfolios, a source added. “Ford is going to enter the used car space very soon. They have already planned it out and the company will make a public announcement very soon,” said an industry source who did not wish to be named.
Ford India spokesperson said, “India is an automobile market with large consumption patterns and the used car industry bears great potential in this context. Our dealer base is independently involved in car exchange programmes for consumers at the local level. We constantly explore newer opportunities to grow our business and reach out to diverse consumer needs though there are no immediate plans to share.”
According to industry experts, companies enter the used car space to widen their reach to the customers. “First time buyers generally go in for used-cars since they are more affordable. With cut-throat competition in the car market, carmakers have to be present in as many segments as possible. The used-car route is a viable option because it does not require huge investments,” said S Ramnath, an auto analyst with Mumbai-based brokerage firm SSKI Securities.
Currently, the used car space is 1.1 times bigger than the new car segment with an estimated size of Rs 47,500 crore.