OLD Vehicles to BOLD Vehicles - Replacement Sale Opportunity
Wahid Raza ??
Strategy ,Operation, P& L, Network Development I Channel Sales ,Service ,Spares I Key Accounts I Alliances I Electric Vehicle l2W I PV I CV I 3Wl Pre Owned Vehicles
Replacement Sales is very big opportunity which generates incremental sales volume by exchange used vehicle to new vehicles. This also take cares of retaining existing customers and converting competition customers into own brand. This is one of the proven tool to push sales and improve market share. Scrap Policy coming will add more value to this opportunity
There are 3 types of customers First time buyers, Replacement /Exchange buyers and buyers purchasing additional vehicles. The Ratio of these 3 varies based on demography, segment, product portfolio and customer profile
Exchange Penetration is defined as percentage of total new vehicle sold due to exchanging used vehicle.
Exchange Penetration in passenger Cars is 30-40% in commercial vehicles 25-30%, In tractors 40-50% and in 2 wheeler around 20 %. In developed markets exchange penetration is more than 70%.
Exchange Sales is one of the reasons that OEMs are entering into Used Vehicle Business. They are pushing dealers to start the used vehicle business to generate incremental sale volume and exploit the replacement sales potential available in the market.
Below this is depicted why this is required to introducing Exchange Program and putting in place strong exchange inquiry Management System.
Exchange Process broadly involves different stages of Inquiry Generation, Vehicle Physical Evaluation, Documents & Service history Verification ,Packaging exchange price and finally procuring the vehicle .All these stages further have detailed process.
Exchange is fruitful in longer runner when dealer is not stuck up with wrong purchases and used vehicle inventory .So well defined processes are required to manage both Supply side and Demand side of used vehicles to Convert OLD into BOLD and hence GOLD.
Automotive Product and Market Research specialist - EV and ICE
4 年Very true, in this current scenario pre owned has an extensive market. Affordable and if some brand can give assurance, its more than enough for any customers. This business model had always been an history of lack of trust and transparency. As a new brand if we can clear the "lack' to 100%.its going to hit auto market like anything.
Pre-Owned Car Business| Channel Development| Sales & Marketing | Business Development | Dealer Management
4 年Replacement sales has always been an opportunity for the Dealers. The seriousness to which they treat this line of business determines the outcome for New vehicle incremental sales and revenues to sustain. More importantly for the brand they represent it safeguards the RVs.
Strategy ,Operation, P& L, Network Development I Channel Sales ,Service ,Spares I Key Accounts I Alliances I Electric Vehicle l2W I PV I CV I 3Wl Pre Owned Vehicles
4 年Yes Kamaljeet right now supply side is concern .Exchange is still happening in higher segments . Customers who were planning to replace their vehicles ,this is right time .They will get better Resale value .Can be convinced on these lines .
Vice President : Strategy & Key Accounts at SMC Insurance Brokers Pvt Ltd
4 年Post Covid Exchange Enquires are down by 7-10% across all OEMs, they are keeping their existing car for family members to avoid public transport .
Founder, Bikes4Sale
4 年Maruti Suzuki has mastered this with their True Value program. And recently seeing a lot of advertisements of Volkswagen Das Welt Auto. Looks like more OEMs are entering the organized used vehicle business.