Skoda is mulling to capitalise on the growing pre-owned car market in India and plans to launch its own brand in the near future.
The used car market in India has witnessed an exponential growth over the past few years. Nowadays, majority of car buyers fall into the younger age-bracket as compared to the trend in the past. As a result of this, people are purchasing more used cars since one can opt for a more premium used car for the same cost of buying an average new car. In view of this, Skoda India is also planning to foray into the pre-owned car business. This might be a result of their lack-lusture performance in the new car market with none of their models clocking decent sales numbers in India.
The company will be starting with a few pilot projects initially in cities like Mumbai and Delhi. Skoda India has no concrete plans as of now as to what they will be naming their brand. Internationally, Das WeltAuto is used by its parent brand Volkswagen and the same will definitely not be used by Skoda unless Volkswagen itself has a few strategies planned of its own for our country in the used cars business. This move by Skoda seems to be a well thought about business strategy, as it may even boost the new car sales for them through different exchange programs.
Skoda managed to sell about 15,500 units last year and is aiming to reach the 17,500 mark for 2015. The Czech automobile manufacturer feels that though these numbers are not very high, the company is still able to register close to 10 percent growth in volumes and a similar trend is expected for this year also. Skoda Auto India director also clearly hinted that the company does not plan to either update its products nor offer discounts to sell more vehicles for India, as it wants to be seen as a premium car company. Currently, Skoda India retails three sedans and one SUV and the Rapid is its highest selling model, comprising of 60-70 percent of its total units sold in India.
