According to Vikram Gaur of Car India, “The Indian used car market is mostly unorganised and the advent of such branded retail stores surely has great potential as people get to buy and sell their cars under one roof. This is practical for potential car owners and sellers.” In a country where people have to make do with shabby disorganized dealers offering ‘unreliable’ services, big-ticket organised forays will come as a breath of fresh air; allowing consumers to buy pre-owned cars in a swank, air conditioned environment. In addition, the consumer will not be left scrounging for ‘best deals’ amidst a plethora of small time vendors, in- stead will have the option to choose from a wide variety of options, all under one roof. Further, more organized players in the market will ensure better ‘resale values’ for used cars, which is a primary concern for all car manufacturers. Auto majors try to ensure stable re-sale values for their brand through their used-car subsidiaries like Maruti True Value et al. But a large number of disorganised players in the segment make the process difficult by enticing consumers with cheaper alternatives. This brings about a slide in the re-sale values as eventual ‘price quotes’ by different dealers lead to a situation where selling-price fluctuations are invariable. More organized players in the market will ensure stable prices.
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Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)
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