Toyota is strengthening its second-hand car business U-Trust with a slew of measures in a bid to create a product differentiation in the used-car market in India. It would handle all used-car customers in the same way like the ones who step into its dealerships to buy new cars.
The Japanese auto maker is building a comprehensive inspection, certification, and rating processes and warranty schemes to ensure buying and selling of used Toyota cars a fair and transparent experience at its dealerships. It has created a 203-point quality check for used cars. It has also deployed global training modules to help develop the skills of dealers. It offers warranty of up to two years and 30,000 km across its dealer network. The warranty handling process for U-Trust certified cars will be the same as new cars.
“Our objective is to retain Toyota customers at a time of replacement by getting them the best price in the market. Also, to expand the customer base by retailing all sourced cars,” according to N. Raja, Senior Vice-President & Director – Marketing & Sales, Toyota Kirloskar Motor.
These measures are expected to facilitate new car sales, increase residual value of Toyota cars and rise the overall revenue and profitability of its dealerships. The company has about 74 U-Trust outlets across 55 cities in the country. “Certification of cars enhances the credibility, particularly in a price-sensitive market. Also, certification of cars adds about four per cent to the selling price of most small-and mid-segment cars,’’ said a Crisil Research report.
