Tata Motors bullish on pre-owned car segment

Tata Motors is bullish on the pre-owned car segment, especially in the organised sector.

Last year, the Ratan Tata-owned company launched its pre-owned car brand, Tata Motors Assured, to capitalise on its vast dealership network and the enormous size of the market, which is estimated at par with the new car segment.

The Indian used car market is dominated by the unorganised sector with an overwhelming share of almost 90 per cent.

However, with the entry of organised players in the pre-owned car market, such as Maruti (True Value), Tata Motors (Assured) and Mahindra (First Choice), the organised pie is growing.

“The organised pre-owned car segment will continue to grow with the quest of the customers seeking better services. For the month of June 2010, this segment accounted for almost eight per cent of our revenues,” Tata Motors senior vice-president (commercial passenger car business unit) S Krishnan told Business Standard.

In January 2009, Tata Motors Assured was launched through 15 dealers in 10 major cities viz Mumbai, Delhi, Bangalore, Hyderabad, Chennai, Pune, Ahmedabad, Chandigarh, Ludhiana and Vapi. Subsequently, the programme was offered across India in a phased manner.

Krishnan was in town to inaugurate the company’s 236th dealership in the country and the 107th dealership to also retail Fiat brands. Now, the company has 530 sales outlets in India.

“We will continue to open more dealerships and outlets, so that we move closer to our customers in underserved pockets,” he added.

He further noted that with economic development percolating in the hinterland, the demand for the automobiles was rising in tier II and III towns.

The company is preparing to soon launch two diesel models Tata Aria (four wheel, 2.2-litre engine) and Ata Venture (1.4-litre engine). Aria is touted as a crossover SUV. Both the modes had been showcased in the Auto Expo.