Skoda India to enter used car market soon, expand dealership and service network
Skoda India is expected to foray into the used car market in India soon, In fact, an announcement to this effect is expected to be made in the next two to three weeks. Skoda has a used car division in place in other markets, but this will be the first time the Czech brand enters this space in India.
We expect Skoda's used car business to be modelled along the lines of Volkswagen's Das Welt Auto program. However, Skoda India is expected to focus on the more affordable end of the space, selling cars within the Rs 2 to 5 lakh price bracket. Also, this program is not expected to be limited to only Skoda cars but may also include cars from other brands.
Just like Volkswagen's Das Welt Auto, we expect Skoda will offer a premium used car service with cars listed on its portals getting a full do-over from Skoda technicians. We also expect in-house financing options to be made available from Skoda-Volkswagen India's financial services arm. Internationally, Skoda also offers warranty and road-side assistance options for its own brand cars sold on the platform. We expect to see this and the new service packages that Skoda recently introduced to also be made available to cars sold via the used car program.
Uniquely, Skoda also offers a drive-away insurance option on the used cars it sells internationally. This is usually valid for a very short period after the sale of the car to cover any defects. An addition such as this to its India program could be a big differentiator in this largely unorganized market segment.
At the launch of the Skoda Rapid TSI automatic, Skoda also announced that it will double its dealership and service facilities by 2022, taking it to 180 from the 100 it plans on reaching by the end of this year. This means that the brand will be present in 50 new cities in India by this time, while larger metros can expect more dealers and service outlets to be set up.
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