Growing Efforts for Marketing of Car Exchange Leading to Increasing Exchange Contribution to New Car Sales in India: Ken Research

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Growing Efforts for Marketing of Car Exchange
Leading to Increasing Exchange Contribution to
New Car Sales in India Ken Research
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The report titled Case Study-Premium Car
Exchange Market in India- Focus on Audi, BMW and
Mercedes with Concentration on Marketing
Initiatives provides detailed overview on the
Premium car exchange business in India. This
report helps readers to identify the ongoing
trends in the industry and anticipated growth in
future depending upon changing industry dynamics
in coming years.
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The report is useful for premium car
manufacturers, authorized and unauthorized used
car dealers, service centers, online portals and
other stakeholders to align their market centric
strategies according to ongoing and expected
trends in the future. Luxury car manufacturers
and thereby the car dealers have put dedicated
efforts towards marketing and promotion of their
new product launches as well as incentive schemes
for the buyers. However, the companies have
divested their focus to promote exchange business
as well. There are couples of factors that have
led the dealers to enhance focus on exchange
business
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• The luxury car companies have instigated separate
  department for pre owned car segment, which deals
  with purchase and sales of used car as well as
  exchange business. This segment tends to generate
  higher profit margin for the dealers, as the
  dealer sell the car at a higher price after the
  repair.
• The luxury car manufacturers in the wake of
  rising competition have increased the launch of
  newer car models. This has led to surge in
  preference for car upgrade.
• The mode of communication for the car exchange at
  the dealer level is made through below the line
  advertisement (BTL) and direct communication with
  the customer. Each dealer for the luxury car
  brand always has a target for new car and used
  car sales, which they have to achieve.

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High customer acquisition costs motivate dealers
to convert store traffic to sales using
aggressive tactics that extract differential
margins based on customers' willingness to pay.
A new trend which has been launched in premium
passenger car market is the exchange scheme
launched by car makers. Before 2014, the sale of
new cars through exchange of existing cars was
not approved by Audi India and hence the exchange
was made at the dealer level without any support
from company with no separate pre owned
department existing in the space for Audi. During
2014, the company launched a separate pre owned
department for Audi named as Audi Approved plus,
which was held responsible to look for the car
exchange and pre owned cars.
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Mercedes has relatively higher growth of exchange
business primarily due to attractive and the
highest exchange bonus which are passed to the
customers. Currently, Mercedes is offering a cash
discount as exchange bonus to the customers who
wish to trade in their car to buy newer one. Out
of this bonus, 50 is only provided if the
customer purchase car through finance. BMW, in
lieu to grow their exchange business offers cash
exchange bonus to the customer who wishes to
trade in their existing car. The company offers
the option to the consumer that allows returning
the vehicle. If the trade-in valuation is higher
than the Assured Buyback, the balance is used
towards the purchase of newer BMW car.
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Key Factors Considered in the Report Dealer
Structure Audi Business Growth Car Exchange Audi
Number of Cars Exchanged Customer Interface Car
Exchange Exchange Contribution to New
Sales Number of Premium Cars Exchanged Ownership
Period of Premium Cars India Organization
Structure Car Exchange Team India Premium Car
Exchange Market Share Qualification for Employees
in Car Exchange Team
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For more information about the publication, refer
to below link https//www.kenresearch.com/automo
tive-transportation-and-warehousing/automotive-and
-automotive-components/india-premium-car-exchange-
market-report/80168-100.html Related
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Aggregators Contact Us Ken ResearchAnkur
Gupta, Head Marketing CommunicationsAnkur_at_kenre
search.com91-9015378249
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