India’s largest scooter manufacturer Honda Motorcycle and Scooters India Ltd. is planning to foray into pre owned two wheeler business to sell its new two wheelers. The company has started a trial study at selected dealership in four major cities Banglore, Ahmedabad, Mumbai and Delhi where plenty of Honda two wheelers sold.
N K Rattan, Operating Head (Sales and Marketing) confirmed the plan but declined to give further details.
A person close to development said that the company has started an internal study where in the pre-owned dealerships have been setup separately from its existing dealerships through dealer margins to get closer to existing and prospective customers. The company seeks to take advantage of about six million Honda two-wheelers that already ply on Indian roads.
Honda Motor Scooters and India Ltd. has now become aggressive after its joint venture brake up with Hero Honda. It has started challenging rival Hero Honda in all the way. Hero Honda started pre owned two wheeler business with “SURE” name in the year 2005. Under this program anyone can exchange their two wheelers in return of new Hero Honda motorcycle. But there is difference in HMSI pre owned two wheelers business. HMSI will only buy used Honda two wheelers in exchange of New Honda two wheelers.
There are almost 50 million old two wheelers on the road in India. According to an estimate the pre owned two wheeler business size is almost double of newly sold two wheelers. Pre owned two wheelers business also helps company to enhance its brand image.