As used car market has generated considerable new car sales for Maruti Suzuki and Hyundai. Now, General Motors India is also trying the same. The used car showrooms accept exchange of old cars for new ones, which helps generate sales. Maruti Suzuki India has claims to generate at least 1/6 new car sales through the used car showrooms. This is because loyalists switch from one Maruti product to another. Through this Maruti continues to maintain its hold over the car market.
However, the company prefers to remain discreet over its establishment plans. The company has not specified a time frame for establishing them. The vice-president, sales and marketing, General Motors India, Mr. Ankush Arora said, “the plan is still under planning stage, decision on the strategy to establish them will be taken in the next few months”.
Industry experts feel that GMI could get its existing dealerships to offer services of evaluation and trading in used cars. They will be trained to evaluate, and trade in the customer’s existing car. It will cater to buyers to will want to upgrade to Chevrolet’s other products or want to exchange an old for a new one.
The other car manufacturers in the certified used car market are Maruti’s True Value, Hyundai Exchange, Ford Assured and Honda Terrace have been trusted by customers to extend reliability. Incidentally, it also generates new car sales.
Currently, General Motors India has 120 sales outlets from 96 dealerships. The company is also moving into smaller cities as part of its expansion plans.