Skoda to enter pre-owned car business

To keep the customers flowing and increase volumes, Skoda India is working at entering the pre-owned car business by the end of the financial year. The Parent company Volkswagen in January forayed into the Indian used car market with the launch of its ‘Das WeltAuto’ arm.

Skoda has a strong portfolio in the Indian market but has not been able to cash on and be a volumes player even though the company came to the Indian market in early 2000.

The launch of Skoda Rapid and Fabia has helped the company increase its volumes but the, Czech car maker has been always under the scrutiny of poor after sales. To encounter that the ramping up efforts to expand overall reach by setting up 150 dealerships by 2014-15. The company has 102 outlets at present.

Skoda India is infusing Rs. 300 crore to increase localisation content in its products and reduce cost of ownership to raise volumes substantially to achieve sales tally of 1.5 million units worldwide by 2018.

The used car market in India stands at 2.7 million units, however, over 85 per cent of it is currently controlled by players in the unorganised sector. Most of the car makers are have entered the used car market which help the customers to provide a very good deal plus offer exchange discounts.

The car makers help in completing documentation work for transferring old vehicles, repair and offer warranty on pre-owned vehicles.

Skoda along with Volkswagen also plans to add more models under the Rs. 4 lakh. The small car be a very important model for Skoda as it will rival the Hyundai i10, Maruti A-Star, Ritz and the Ford Figo.

Read more on the Skoda Citigo

Info Source: BS