Audi India, the Indian arm of the German car manufacturer is planning to enter the used car business in India in the financial year 2012-13. The company is also expanding its presence in small towns such as Nagpur where it has opened up a showroom and has similar plans for cities like Bhopal and Coimbatore.
According to Mr. Michael Perschke Audi’s India Chief, the used cars can be bought at almost half of the on-road price of new cars. He added that the Indian used car business is majorly unorganized and consists of small traders. He opined that car manufacturers are better equipped to provide better bargains to customers with added benefits such as refurbishing of cars and warranty.
Commenting on the potential of the used car business, Mr. Perschke stated that in some instances, luxury cars are up for sale within 12 months of a new purchase. The company expects the supply of about 1,500 used cars in the used car segment annually which is almost 18 percent of the company’s total annual sales in India.