New Delhi: At a time when car sales have started moving southward for the first time in nearly three years, country’s largest carmaker Maruti Suzuki is turning to 15-20-year-old cars to push new ones through exchange.
The company has tied up with scrap dealers across India to dispose of old cars exchanged for new cars and is welcoming customers to come with old cars of any make for exchange.
“We have tied up with 15-20 people dealing in scraps in each of the cities that we are present,” Maruti Suzuki India Chief General Manager (Sales Support) Ravi Bhatia told PTI.
The company has started giving offers to customers worth up to Rs40,000 while purchasing a new car through exchange, while inviting bids from scrap dealers at the same time for the old cars.
He said the move has helped the company in pushing sales significantly through its pre-owned car business ‘TrueValue´.
“Ever since we have started accepting 15-20 year old cars, exchange has gone up from 12% to 20% and it has helped an entry level product like Alto to become a replacement model,” Bhatia said.
Earlier Alto has been considered to be the car for the first time buyer. The exchange offer has helped about 12% of total sale of new Altos coming from it.
Initially, TrueValue accepted only Maruti cars, which were not older than 10 years and ran less than one lakh kms. Recently, it has extended the scheme to all cars of any manufacturer and of any age.
“When we did a market study, we saw a latent potential where people wanted to exchange their old cars but did not know where to go and was not getting good value from scrap dealers as well,” Bhatia said.