Preowned Cars in India - Getting Organized and Booming ! Big Passenger Car Players focus on POC business to increase Profitability .

The Automotive Industry might be on a decline but there is some sunshine amidst the heavy rain , There are two sectors in the industry which are growing at a good pace and have still a very long way to go , The High End Luxury Car Segment and the Preowned Used Car Segment.

A data collection source indicates that in America for every 1 new car sold there are 3 used cars sold so the ratio is 1:3 where as in India this ratio is still at its infant stage 1:1.2 new:used , used car industry has surpassed the new car industry in India as well and this will go up to 1:2 by 2016 so for the (POC)Preowned car industry there is still a long way to go. No wonder we can see most of the new car manufacturers getting into the used car segment as well along with big multi branded Preowned car companies . It is rightly said the more the merrier so the more players coming in are making the segment more organized and hence increasing the numbers and trust of Indian consumers in the used car segment . The main  reasons for used car industry to lag behind in India has been its unorganized nature and unreliable broker network multiplied with factors like bad Indian road infrastructure and not so state of the art workshops and unskilled workshop manpower at various levels which results in deterioration of the condition of the vehicle much faster than it should , To top it up the Indian consumer sentiment of buying a new car and not a used one.

All of the above is changing fast , it is improving with good roads being built , express ways , companies investing on better technology , R&D and trying to hire trained and educated manpower , imparting technical know how and training them, it simply means less wear and tear in the vehicle.

The Manufacturers can foresee a lot of growth potential in the POC business hence to increase volumes and profitability all of them are trying to establish a strong foundation in this category of business, Maruti as always being the leader and having the first mover advantage launched Maruti True Value years back , Following their footprints are other manufacturers with their respective used car business models - Hyundai Advantage , TATA Assured, Honda Auto terrace , Chevrolet Certified , Ford Assured and  Toyota U Trust. This clearly indicates the focus of companies in the used car business and it's ever increasing scope in India as the POC industry in India is still at a nascent stage.

The Luxury Car Makers are not far behind , Most of the popular brands like Audi, BMW and Mercedes have a Preowned car section in their showroom to buy and sell Certified Preowned cars with warranty. For retention they also provide the new car buyer with a handsome amount of exchange bonus or offer programmes like Upgrade Challenge etc 

Their are not only brand specific companies jumping into this business but a few multi branded companies selling all cars under one roof are also trying to establish their names in this particular industry viz. Mahindra First Choice formerly known as AutoMart , Car Nation being run by Mr Jagdish Khattar. All these are at a National Level, The B towns and city specific dealers are also becoming brand conscious and organized. They are understanding the need of the hour and voice of the consumer and advantages of Selling a Certified Car from a branded showroom. At a city specific level there are famous brands like Big Boys Toys and AutoBest in New Delhi, The Car Mall is a famous brand in Agra, UttarPradesh and many more such names are there who believe in selling Certified Cars in an organized manner as they want to differentiate themselves from the unorganized used car broker market.

This would be the future of Used Car Market in India, I forecast 5-7 years down the line it will be all organized , if not all at least most of it, People would not hesitate to buy a Used Car from a branded Showroom which sells a certified Car with some quality Check, Assurance and may be warranty aswell. Banks are also joining hands with Used Car brands to provide Easy Finance to the Consumer. Used Car Segment will eventually be the winner against the New Car Segment, and will always Lead, The people adapting to the change will be the winner  in their business, very rightly said by Mr.Shiv Khera ," Winners don't do different Things, They do things differently"