Our Bureau

Ahmedabad , Oct. 14

MARUTI Udyog Ltd (MUL) has launched TrueValue, its pre-owned cars business in Gujarat after the State Government replaced a 12 per cent tax on sale of second-hand vehicles with a flat levy of Rs 1,000.

"We are launching TrueValue at six dealerships in Gujarat after the State Government agreed to our demand to bring taxes on sale of second-hand cars at par with the rest of the country.

"Existing Maruti owners in Gujarat can now upgrade to a new vehicle without any hassles, apart from getting loyalty discounts," the MUL Managing Director, Mr Jagdish Khattar, said here on Thursday.

Maruti offers the TrueValue schemes at 160 dealers across 112 cities in the country.

A seller can drive into the dealership and get his car evaluated. Maruti would then purchase the car and re-sell it after refurbishing and certifying the vehicle.

The buyer can get a second-hand car at a fair price without the fear of having an illegal or damaged car being palmed off to him by an unscrupulous seller.

"The used cars business is set for rapid growth and we are the only company with a nation-wide network of dealers offering the facility.

"In developed countries, used car market is three times the size of new car business while in our country, the ratio is only one-to-one," Mr Khattar said.

Maruti sells about 3,000 vehicles a month under TrueValue and has already sold over 30,000 cars since the scheme was launched last year, according to Maruti General Manager (Marketing), Mr Ravi Bhatia.

"The total market for used cars in the country stands at about six lakh units per year.

"We are facing problems of supplies as of now because the demand at TrueValue has been far in excess of the number of people giving in their cars," Mr Bhatia said.

According to a study carried out by Maruti, 65 per cent of the TrueValue customers are first-time car buyers and the company hopes to provide them with a set of four wheels at a reasonable price, he said.

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