French auto manufacturer Renault will soon foray into used car business in India. Renault has confirmed that it will commence pre-owned cars business from the second half of 2015. The new venture will help Renault strengthen its sales as it targets to acquire 5 per cent market share in India by the end of 2016.
Before going full scale, Renault’s currently testing the used car business model on pilot basis. Unlike other manufacturers pre-owned car networks such as True Value (Maruti), First Choice (Mahindra), HPromise (Hyundai), AutoTerrace (Honda) etc.,
Renault’s used car dealerships is claimed to come up with unique buying and selling features. However, in terms of second hand user experience, it is likely to have similar offers and assurances for consumers such as quality checks, extended warranties etc., on used cars. The upcoming Renault used car shops will also serve as a platform for existing Renault customers to sell off their old cars without much hassle.
As mentioned before, Renault is looking to grow its market share here in India from current 2 per cent to 5 per cent by the end of 2016. Considering the fact that in just over 4 years Renault managed to have 2 per cent share in the market, the newly set target seems difficult, but certainly attainable. What’s more, Renault has recently launched the new Lodgy MPV in India and is betting heavily on it. This same year, the company will also launch an all new small car priced under Rs 4 lakh in order to boost its sales.
Last year, Renault sold over 45,000 units in the domestic market. The sales, of course, were majorly driven by the Duster SUV as Renault has sold over 1.25 lakh units of the compact SUV since its launch in India. Besides the upcoming used car business, Renault will also expand its dealer network to 205 outlets and 280 touch points by the end of 2016 as compared to the 157 dealerships across India as of now.
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