[johannskaria]

The country's largest passenger vehicles maker, Maruti Suzuki, today announced a complete revamp of its 16-year-old pre-owned car unit, True Value, and said it plans to set up 150 independent dealerships of the vertical by March next year.Overall, the company intends to open 300 dealerships of the pre-owned cars in the next two to three years period


The idea for giving altogether a new look to the used car business is to enhance the modernisation and encourage the two-wheeler owners to switch to four-wheeler.

The sale of pre-owned certified cars has grown to 22 per cent in the last fiscal from 10 per cent three years ago, he said, adding that the company expects this to jump to 30 per cent by this fiscal.
The company sold 3.50 lakh units of used cars last year.

These outlets will be digitally integrated through a portal so that customers can access details of all the cars available at True Value outlets nationwide.

Only Maruti Suzuki cars (including those sold through Nexa) will be sold through these outlets.

Article link

Implementing Maruti Suzuki 2.0 image makeover
Team bhp thread on the Maruti 2.0 plan

[blackwasp]

Yes, internal research shows tremendous growth in used car business. It's been predicted that the True Value vertical will out-grow the new car business. So, instead of it being a tool to sell a new car, it'll be another avenue that gives good income to the dealer.

This set up of new true value dealerships is already under way, especially for the bigger dealerships. There's a dealer in Mumbai region who has a NEXA, normal channel, commercial vehicle, another new dealership opening soon (with modern and digital themes), and soon a True Value standalone dealership. This process started quite sometime ago.

[TusharK]

The revamped True Value outlets will be digitally integrated and allowing customers to access the database from anywhere in India. The website will also list out details like specifications, features, etc.



Maruti has a 376-point evaluation process, based on which each car will be given a star rating (1 to 5 stars).

Cars sold at True Value stores will be less than 7 years old, with a mileage of less than 1,00,000 km and with not more than 2 previous owners. Commercial vehicles, cars with retrofitted CNG/LPG kits will not be sold under True Value.

Certified cars will come with a warranty of up to one year and multiple free services.



Link to Team-BHP News

[GTO]

Let's not forget that True Value sells more cars than all other car manufacturers in India, barring parent Maruti & second-place Hyundai. It's the no.3 car seller in India . That's especially impressive when you consider that used cars don't require the expansive manufacturing support of new cars, and that profits on used cars are fatter too.

A True Value outlet is a lucrative business opportunity for existing Maruti dealers.

[SmartCat]

Originally Posted by TusharK

The revamped True Value outlets will be digitally integrated and allowing customers to access the database from anywhere in India. The website will also list out details like specifications, features, etc.

This is a game-changer if the database is maintained well and updated every day. It makes used car buying a totally hassle free experience. This is especially useful if you want to buy a car with poor availability in the used market market (recently launched or flop models or AT variants)

Mahindra FirstChoice and other branded used car dealerships too are supposed to have an online database but there are hardly any entries there.

Originally Posted by GTO

A True Value outlet is a lucrative business opportunity for existing Maruti dealers.

It is? Better than new car business? What about high inventory levels and working capital locked up there?

[Karthik Chandra]

Originally Posted by GTO

A True Value outlet is a lucrative business opportunity for existing Maruti dealers.

Originally Posted by smartcat

It is? Better than new car business? What about high inventory levels and working capital locked up there?

It is.

Since they have exchange options for old car, they can offer exchange bonus on new car and then make up that with a profit on the sale of old car. Opportunity to clear inventory and at the same time make profit on sale of old car (not that MSIL is struggling to clear inventories).

Having a True Value dealership has the following benefits for MSIL dealers

# Aids in quicker closure of deals
# Retaining existing loyal MSIL customers
# Added profit margins
# Quicker inventory clearance
# Repair/Touch up job for exchanged old cars would cost only a fraction of what would be charged for an individual owner for the same job
# Value add for used car customers by offering MGP/aftermarket accessories, thereby making profits
# Profits from after sales service of exchanged old cars (MSIL cars)

Working capital is not as huge as new car business. For instance ABT Ltd operates both new car and True value business in the same premises. They have a very huge property in Guindy, Chennai. Mostly it'll be old Maruti cars exchanged and they wouldn't have challenges in selling them, so pile up of inventory is not a worry.

It makes great business sense for existing MSIL dealers to sign up for True value dealerships.

[V.Narayan]

Originally Posted by blackwasp

Yes, internal research shows tremendous growth in used car business. It's been predicted that the True Value vertical will out-grow the new car business.

Originally Posted by TusharK

The revamped True Value outlets will be digitally integrated and allowing customers to access the database from anywhere in India. The website will also list out details like specifications, features, etc. Maruti has a 376-point evaluation process, based on which each car will be given a star rating (1 to 5 stars). Certified cars will come with a warranty of up to one year and multiple free services.

Originally Posted by GTO

Let's not forget that True Value sells more cars than all other car manufacturers in India, barring parent Maruti & second-place Hyundai. It's the no.3 car seller in India

This institutionalizing of second hand car sales and giving it a protection of predictability and integrity is introducing first time car buys to a new upcoming economic segment who hitherto would have stayed away. The sense of confidence, prosperity and well being the first car brings to as family is in a league of its own. Road infrastructure not withstanding this is a wonderful direction for sharing economic prosperity.

Originally Posted by smartcat

This is a game-changer if the database is maintained well and updated every day.Mahindra FirstChoice and other branded used car dealerships too are supposed to have an online database but there are hardly any entries there.

We tried selling some used cars from my business through Mahindra First Choice with no luck - we could not get past logging the details on their system and so in the end sold through tried and tested Sardar Randhawa!

[lamborghini]

I sold my Liva in Mumbai to a true value dealership (gave the best deal), and they sold it to a buyer in Karnataka.
Strength of the network I guess, as the car would have been a slow mover in Mumbai but sold a lot quicker down south where the diesels are appreciated.

[SwapnilNalavade]

Some more pictures presumably of the same outlet.

[GTO]

Originally Posted by smartcat

It is? Better than new car business? What about high inventory levels and working capital locked up there?

Well, the inventory cost will be lesser than that for new cars as the average price / car is lower. A cheaper car with a fatter profit margin, what's not to like?

The good Maruti dealers are a happy lot. Not only do they get to branch out into True Value, they've also gotten profitable Nexa showrooms!

Originally Posted by Karthik Chandra

Since they have exchange options for old car, they can offer exchange bonus on new car and then make up that with a profit on the sale of old car. Opportunity to clear inventory and at the same time make profit on sale of old car (not that MSIL is struggling to clear inventories).

I don't remember the exact numbers, but IIRC, 30% of all True Value cars are trade-ins for new Marutis. For customers, having an easy trade-in of their old car is all about convenience. For the dealer, it's a chance to make profit off two cars (the new & old) from the same customer.

[johannskaria]

Originally Posted by smartcat

This is a game-changer if the database is maintained well and updated every day. It makes used car buying a totally hassle free experience. This is especially useful if you want to buy a car with poor availability in the used market market (recently launched or flop models or AT variants)

Totally agree with you on this. As of now the online database are in a dismal situation. Hopefully they will revamp the website and also their inventory databases to give a prospective customer attractive options.

At the same time just imagine the sheer amount of data Maruti would be able to gather and utilise from such an exercise. They would be at a much better position when compared to their peers

Originally Posted by lamborghini

I sold my Liva in Mumbai to a true value dealership (gave the best deal), and they sold it to a buyer in Karnataka.

With the new direction of only Maruti cars sold through the True Value outlets it will be interesting to see how differently other brand customers are treated when they come in for trade-in.

Originally Posted by SwapnilNalavade

Some more pictures presumably of the same outlet.

More than anything the placement of MGA (accessories) interested me.
Maruti is putting the pedal to the floor for extracting margins out of the true value showrooms. Earlier the push was minimal at true value.

[Sankar]

Originally Posted by TusharK

The revamped True Value outlets will be digitally integrated and allowing customers to access the database from anywhere in India. The website will also list out details like specifications, features, etc.

True value already has a digital database where we can look up cars based on one's location and models. The dealers have to upload the details as and when the cars become available and they are not doing it properly. When we go to the dealer seeing the vehicle listed on the website it is either already sold or it is at some other dealer ship. And what they have in the yard is not listed. Recently I went looking for a Nano i saw on their website and that car was not there, but I got another one which was not listed. Same story with their own makes too.

I have sold two marutis to true value but I have never seen them update it on the website.

[volkman10]

Maruti Suzuki aims to sell 6 lakh used cars annually by 2020

By 2020, the Japanese carmaker aims to sell annually about 6 lakh used vehicles — or the combined new-car sales currently by Tata Motors, VW and Honda in India. Maruti Suzuki’s TrueValue sales channel would drive the company’s leadership ambition in the usedcar space that, the compact-car leader could generate Rs 15,000 crore in sales.

link

[johannskaria]

Their website and databases seems to have got a speedy update.
As i was in the market for a used Ritz Diesel (Very hard to find a good one within budget), was keeping an eye on the True Value website. It has now turned into an intuitive place where the relevant informations to the customers are displayed on the face, unlike earlier.

Below the mobile ,desktop website and their android app.


On mobile


On desktop








On Andriod

[johannskaria]

Is in market for a Ritz Diesel / Petrol purchase for my best friend.
Will serve his family duties as well act as our true road trip car.

Tried using the app and the website for the past two days.
It seems there are lot of gaps which needs Maruti's immediate attention.

1. The listings are just given as available at Automotive Manufacturers Pvt. Ltd, Mumbai. The branch or place of true value showroom are not mentioned. Hence it becomes a trial and error method trying to trace the listing when Automotive Manufacturers Pvt. Ltd has four showrooms and even their executive seemed to be puzzled .
2. Booked test drives via app, but got no call backs for confirmations or scheduling the same.
3. If you try the customer care number 1800 102 1800, they seem to be in dark of all the listings. And their promise of a call back from the true value dealer, seems to be a hollow one after waiting 48 hours for it. On top of that all the dealer contact number shows the above 1800 number, making it even difficult to contact the dealer directly.






Hopefully Maruti addresses these issues soon.