It is expected that people will give preference to their vehicle for the movement between the corono virus epidemic and this will increase the statistics of Used Car Sales.
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Major automobile companies Maruti Suzuki, Mahindra & Mahindra and Toyota Kirloskar Motor are excited about the growth in their business of buying and selling old cars. However, the business activities of automobile companies have been adversely affected due to the COVID-19 challenges. Companies are a little cautious about the near term situation due to the pandemic, but they hope that people will prefer their vehicle over the movement between the corono virus pandemic and this segment (buying and selling of old cars) will increase in the long run .
Shashank Srivastava, executive director (sales and marketing), Maruti Suzuki India (MSI), told PTI, “Looking at the COVID situation, it is very difficult to predict the business of buying and selling of old cars in the current financial year. How is the performance of Demand for such cars is in the market, but there is pressure on availability due to restrictions in various states to prevent the corona virus epidemic. ”
The vehicle company currently has 570 true value shops for the purchase and sale of its old cars. At these centers, the company certifies cars taken from various sources. It also includes customers who exchange their old cars for a new Maruti model.
Demand for used cars is very high
Shashank Srivastava said that the business has been affected due to the COVID situation. Around 416 shops are still closed across the country. However, he also said that the demand for old cars is very high. The reason for this is that people are now wanting their own car to go anywhere. The challenge is availability in the current condition. The company’s old car sales declined 36 percent to 2.65 lakh units in 2020-21 from 4.18 lakh units in 2019-20. He said, “If the situation of the epidemic continues like this, the sales will remain around the last financial year. That means the exchange of cars will be less. We have seen the same situation in April and May. This will affect the availability of old cars.
Old car sales up over 40 percent
Naveen Seni, vice-president of Toyota Kirloskar Motor, also said that it is difficult to assess the situation in the current situation. He said, “The situation was almost normal during January to March this year. During this period, we saw a jump of over 40 percent in the sales of old cars compared to the same period last year. Therefore, our outlook is positive but it all depends on when the situation improves. ”
In the last financial year, sales of old cars of the automobile company decreased by 17 percent as compared to 2019-20. He said that people are very interested in old cars for personal use. According to Sony, however, there is a decrease in sales. The reason for this was the closure of the retail showroom during the nationwide ‘lockdown’ last year. The second reason, people who were willing to replace the old car with a new one, probably postponed their plans in view of the crisis.
Mahindra excited about old car sales
Domestic vehicle company Mahindra & Mahindra said that it is excited about the increase in sales of its old cars. Ashutosh Pandey, managing director and CEO (chief executive officer) of Mahindra First Choice (MFC) Wheels, said, “We are continuously investing in technology. In addition to the rapid expansion of our MFC shops, we plan to aggressively expand our Autocart Refresh Wholesale Auction model. Our aim is to do better than our previous financial year figures and increase our revenue by 100 percent year after year. ”
According to Pandey, the business of Mahindra First Choice has increased significantly in the last few years. It has increased by 60 percent during the financial years 2018-19 and 2019-20. Despite a loss in the first quarter of FY 2020-21, the business has grown by more than 20 percent. During this period more than 1.8 lakh units were sold.
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