Nano effect: threat to used cars
With the much awaited world's
cheapest car 'Tata Nano' car launched, dealers of used cars forecast around
30-40 per cent dip in the sales of used small car in the country. Due to its
"low" price tag, many customers opting to buy a used car may plump
for a new Nano, though it comes comparatively with lesser cubic capacity, R
Srivatsan President of MyTVS, part of the TVS Group engaged in selling used
cars said.
"It is because of this factor,
we are expecting around 30-40 per cent drop in the market of A and B segment
vehicles", he said. "However, once the car (Nano) hits the road, we
will know the exact figure on that," he said.
Stating that the Nano design was
very good and attracts more buyers, he said once the booking starts for Nano,
there would be less number of people going for used small cars. For the exact
results, "we have to wait and see on how the market responds," he
said.
Initially, there may be a slump in
the sales of used cars especially Maruthi 800, Alto and Hyundai Santro range of
vehicles, he said. Srivatsan said a general trend was that instead of buying a
used car for Rs one lakh, people would go in for a brand new Nano. However, if
Nano performs well then the problem arises for these kind of cars.
"We have to stop procuring
these cars or we need to purchase them at a very low price from buyers and that
is the way I think we can manage the sales in future," he said. Speaking
in similar terms, Saravanan, an official of ToyotaFirst, engaged in selling
used cars and a subsidiary of Lanson Toyota Group, said Nano might be a cost
effective vehicle but we need to 'wait and watch' for its performance.
"When Maruti 800 was launched
in the country, another vehicle Dolphin was also unveiled but we all know which
has been successful, similarly, only after the Nano being formally unveiled we
may come to a conclusion", he said.
The last two months registered a
comparatively low sales for the company, he said. "Nano may be a top
scorer on the cost but in the longer perspective, it is the performance that
speaks. We have to wait and see."
A Maruti 800 could touch at least 80
KM per hour and company officials of Nano said they could reach 60 KM per hour,
he said.
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