Monday, August 13, 2012
By Manoj Kumawat
Used cars: Skoda may plunge in used car business
Skoda India has been doing well in the Indian car market, since the time of its entry. Now, the company is planning to step its foot into the pre-owned car trade in the country by the end of this fiscal year, as per reports. The major reason behind this step is the lukewarm condition in the car market. The used car business has given a big boost to many other car firms and seeing the responsive of the consumers, Skoda decided to try its hand in the same. According to the rumors floating in the market, instead of offering discounts and price cuts on the Skoda cars, Skoda India will soon enter the pre-owned car business.
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Skoda India is putting in a lot of effort to establish itself in the country. In order to strengthen it in the market, the company has 102 authorized dealer outlets and this number is expected to rise to 150 by 2014-15. Car companies progressively keeping their focus point on the sales of used cars in order to amplify their volumes in the market. The ever-rising fuel prices, hiked interest and dicey economic condition have lowered the sales of new cars. The used car business in the country is going good and it certainly provided the dealers with chances to enhance the margin. Therefore, if Skoda is planning to enter the same segment, there is nothing wrong with it.
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However, Skoda will be facing a tough competition in the pre-owned car business as well. The big daddies of the car market are already battling it out on that front. Car manufacturers like Maruti Suzuki India and Hyundai Motors India are settles and established in the used car business as well. Therefore, for succeeding in the business, Skoda will have to play its cards right.