TVS group to foray into used car market

By K. T. Jagannathan

CHENNAI, SEPT. 29. The TVS group is readying to break into the burgeoning `pre-owned car' market that has already seen the entry of automobile giants such as Ford, Hyundai and Honda.

The entry into the second-hand car market will most likely be through Sundaram Motors. All options - whether to keep this activity as an independent subsidiary or pursue it as a division within the company - are now being considered.

The TVS group is taking a cautious approach to the whole issue to ensure that it is not forced to regret in leisure later.

Sources admit that trading in pre-owned cars can indeed prove quite a tough business and may demand knowledge of a different sort. Not surprisingly enough, the TVS group is leaving no stone unturned to get itself prepared before foraying into the second- hand car market.

It is learnt from informed sources that the company had sounded players operating in the markets similar to India for imparting training to its personnel in the art of trading second-hand cars.

The TVS group is keen to understand first the intricacies of the trade before venturing into the business. ``It is a tricky business. If you do not get your acts right, you will lose your shirt,'' said Mr. Sharath Vijayaraghavan, Vice-President, Sundaram Motors.

If things go according to its plan, the TVS group should be making a beeline for the second-hand car market before March next. Sources said the group would stake the TVS brand while entering the business.

To start with, it may limit its trading to select cars. At present, Sundaram Motors is a dealer for Ford, Fiat and Honda. It will deal with all types of cars after acquiring expertise over a period. Given its brand equity, network, quality of service and penchant for ethical practices, observers feel that the group is well positioned not only to bring respectability to the whole second-hand car trading business but also to inject confidence in the minds of sellers and buyers.

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