Ford to step into used-car market soon
With opening of multi-brand outlets across the country, the wholly-owned subsidiary of Ford Motor Company, Ford India, is all ready to step into the constantly growing market for used cars. According to a source, stepping into the used car market is a part of the company’s marketing strategy for developing strong customer relationship across product portfolios.
An industry source said that Ford is going to enter the used car space very soon and has already planned it out. The company will soon make a public announcement. The source also added that Ford would enter the multi-brand used car space selling models across companies and not restrict it to only used cars.
The spokesman of Ford India said that India is an automobile market with large consumption patterns and the used car industry bears great potential in this context. The dealer base of Ford is independently involved in car exchange programmes for consumers at the local level. As per the car experts, in order to have a wider reach for connecting with customers, the companies explore the used car space. An auto analyst, S Ramnath commented that first time buyers usually opt for used-cars because they are more affordable. Also, the used-car route is a viable option because it does not require huge investments, said Ramnath.
The all time rival of Ford, General Motors has also found the same opportunity for the used car market and that is why General Motors is also preparing for a wide expansion drive in the coming few years. According to P Balendran, company’s vice-president for corporate affairs, the company is ready to increase the total Chevvy OK outlets to 70 from the current 45. Balendran also explained the reasons why used-car space makes sense. He said that, at the first place, it provides additional revenue to the dealers. Secondly, it gives extra volumes and thirdly, it enriches the image of the corporate.