Tata Motors might enter the second hand car market in India

wizardofid · 17th April 2007, 18:37

The margins for dealers on used cars is about as good as it is for new cars. Tata's cars command relatively poor values in the used car market, primarily because of reliability issues in their diesels. This is an opportunity for Tata's to capitalize on that. People buy a Tata-True Indica cheaper than a TrueValue Zen. The buyer is happy because it comes with a year's warranty and the Tata dealer still makes more money.

It is an opportunity waiting to happen. The only downside I guess is that Tata's didnt allow a zillion authorised service centres to spring up.

17th April 2007, 18:37	#16
wizardofid BHPian Join Date: Feb 2007 Location: Bangalore Posts: 207 Thanked: 6 Times	The margins for dealers on used cars is about as good as it is for new cars. Tata's cars command relatively poor values in the used car market, primarily because of reliability issues in their diesels. This is an opportunity for Tata's to capitalize on that. People buy a Tata-True Indica cheaper than a TrueValue Zen. The buyer is happy because it comes with a year's warranty and the Tata dealer still makes more money. It is an opportunity waiting to happen. The only downside I guess is that Tata's didnt allow a zillion authorised service centres to spring up.
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