French car maker Renault, on Thursday, announced the company’s entry to pre-owned car business with the launch of Renault Selection in Bengaluru. Through the new format, the car maker is aiming to enter the rapidly growing pre-owned car business, besides catering to customers who want to sell used cars and buy a brand new Renault car.
“Renault is pursuing an aggressive growth strategy in India and we are entering new businesses in the automotive space to best serve the Indian customer. With Renault Selection, we will address these needs, by offering customers the best quality of multi-brand pre-owned cars, as well as Renault’s segment defining products,” said Sumit Sawhney, Country CEO and Managing Director, Renault India.
The pre-owned (used) car market in India has steadily gained momentum and the leading car makers have launched their own pre-owned car business. According to industry sources, the used car market in India is higher than the new car volume and it is estimated to reach twice the size of the new car market within the next five years. As per industry estimates, for every new car sold, two used cars are sold and a total of 3.5 million used cars were sold last year.
“Given the market opportunity, our new venture will play an important role in building the Renault brand in India,” added Mr. Sawhney.
As part of the growth plan, Renault will soon open three more used car outlets in Jaipur, Nagpur and Chandigarh. In 2016, Renault will open 20 used car facilities and intends to expand it to 50 over the next two years.
Renault India, which was aiming a five per cent market share in the Indian car market by 2017, said with huge demand environment for its models, the company is confident to reach the target by the end of 2016.
