Skoda Planning To Enter the Pre-owned Car Business


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Already most of the major car makers have joined the pre-owned car business bandwagon and now it has been reported that the Czech car maker Skoda is working at entering the pre-owned car business by the end of the financial year. According to a report in Business Standard, it has been reported that the move comes on the back of automobile companies increasingly attempting to expand volumes in a sluggish market by initiating new customers into their brands through pre-owned vehicles and retaining older ones through loyalty programmes.

The report quoted Sudhir Rao, managing director, Skoda India as saying “We are working on putting in place a comprehensive growth strategy to penetrate deeper into the country with our range of products. We will not trigger discount wars to boost numbers but we are working on entering the pre-owned cars business to introduce more customers to our brand by the end of the year.”

It was mentioned that while the specifics of the used-car business are still being worked out, Skoda is ramping up efforts to expand overall reach by setting up 150 dealerships by 2014-15. The company has 102 outlets at present. According to the report, though the Indian subsidiary at present contributes a little over three per cent to Skoda’s sales globally, the company was infusing Rs 300 crore to improve localisation content in its products and reduce cost of ownership to raise volumes “substantially” in the country and to achieve sales tally of 1.5 million units worldwide by 2018, according to the report.

Skoda planning to enter the pre-owned car business | WheelsUnplugged
 

350Z

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Czech car maker Skoda is working at entering the pre-owned car business by the end of the financial year.
Used car market has become a source of profitable business from some time now. Most of the major players are already into it and I think Skoda was the only one left.

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Used car market has become a source of profitable business from some time now. Most of the major players are already into it and I think Skoda was the only one left.
I agree with you, selling refurbished car's bring's volumes to both manufacturers and their dealer's, but it's a cut throat industry not everyone can succeed in this field ask Tata's & Toyota's.
 

350Z

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I agree with you, selling refurbished car's bring's volumes to both manufacturers and their dealer's, but it's a cut throat industry not everyone can succeed in this field ask Tata's & Toyota's.
A couple of major advantages that I see of manufacturer’s own used car outlets is that:

> It draws more buyers of different markets ultimately to their brand (Even those who cannot afford a new car of a particular make).

> The buying ‘experience’ of new and used car diminishes. Since the used car buyer also receives a professional treatment and goes through the similar formalities / ceremony just like a new car buyer. This to an extent clears off the perception of buying a used car. On top of that, the manufacturer’s authorized used cars are refurbished such way that they look no less than new.

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