Mercedes-Benz brands its fast-growing pre-owned car business

The new brand `Mercedes-Benz Certified’ has been developed specifically for the Indian market and provides customers an experience ``equivalent to a new car purchase.’’

Mercedes-Benz on Thursday branded its existing pre-owned car (POC) business in India as `Mercedes-Benz Certified’. (file photo)

Luxury car major, Mercedes-Benz on Thursday branded its existing pre-owned car (POC) business in India as `Mercedes-Benz Certified’ and simultaneously inaugurated 12 new POC outlets across the country.

The new brand `Mercedes-Benz Certified’ has been developed specifically for the Indian market and provides customers an experience ``equivalent to a new car purchase,’’ Eberhard Kern, MD & CEO, Mercedes-Benz India told a media round-table.

The new brand offers tailor-made financing options, warranty and service packages. Also a new website, iPad sales software, specially trained staff of over 100 consultants will ensure a differentiated product, he said.

The cars enlisted under ` Mercedes-Benz Certified’ will be selected based on quality checks and will need to pass parameters like being less than 5 years old, it should have run less than 100,000 kilometres, have no accident history and not having had more than two owners.

Mercedes-Benz India has a sales network of over 150 POC display bays and Mr. Kern said this would increase to 250 plus bays by 2015. ``Beginning with the metros, the plan is to spread to Tier II and Tier III markets which are emerging markets and have huge potential.’’

Mercedes-Benz India’s POC segment saw a 39 per cent growth in the January-September 2014 period. Mr. Kern said ``we sold around 1,700 pre-owned cars in 2014 to date and have a 40 per cent share in the POC luxury car market here which is around 4,000-5,000 units.’’

For every 100 new cars sold in India, 110 pre-owned cars are sold. In the US, it is 4 times while in Germany it is 2.2 times.

For Mercedes’ POC, a year-old car was around 20 per cent cheaper than a new car while a 2-year old car was 35 per cent cheaper.

He said for Mercedes, E-Class, C-Class and ML-Class saw the highest volumes in the POC segment, ``but this may change as our newer models also establish themselves. With attractive trade-in and financing options, we anticipate this segment to grow further driving the sales of new cars as well.’’