Maruti revamps True Value outlets

Maruti Suzuki is betting on its pre-owned cars business, True Value, to ramp up new car sales with the introduction of standalone True Value outlets. Earlier, the company’s True Value outlets, which is the company’s pre-owned car business, were attached to new car showrooms. But on Thursday, the company unveiled plans to open standalone branches solely for sale and exchange of pre-owned cars. The company will also launch a smartphone app, that would help a buyer select a car from those available at a True Value centre.

Managing director and CEO Kenichi Ayukawa said, “We want to offer buyers of pre-owned cars the same experience as buyers of new cars. A network of spacious new outlets, using digital technology for customer convenience, will be a highlight of True Value. Our focus will be on quality cars, refurbished and certified with the assurance of warranty.”

Almost 30% of the car maker’s new car sales come from the exchange of pre-owned cars. Also, according to RS Kalsi, senior executive director, marketing and sales, around 70% buyers of pre-owned cars from True Value end up purchasing a new Maruti Suzuki vehicle in a matter of 1-2 years.

Kalsi added, “We have started with a couple of True Value showrooms in Delhi now. Over the next 2-3 years, we expect over 300 such outlets across the country.”

The company sold around 3,50,000 pre-owned cars last fiscal. The company feels that there is scope to increase volumes from this space, as it remains largely unorganised. “The pre-owned car market is around 1.2 times the new car market. There is a growth potential since it is mostly unorganised,” Kalsi said.

Launched in 2001, True Value is the first organised pre-owned brand of the country.

Maruti Suzuki India Limited