Maruti Suzuki revamps used car division True Value, to add 300 outlets by 2020

A 376-point check will be carried out on all cars sold through True Value with a certificate issued by a certified engineer indicating the health of the car through a star rating process.

At present, only 22 percent of cars sold by True Value are certified which the company hopes to increase to 30 percent this year. Only Maruti Suzuki cars (including those sold through Nexa) will be sold through this.

“This revamp is done to make sure the buyer remains within the Maruti fold. From a two-wheeler he can upgrade to a True Value certified car before moving to either Maruti or Nexa,” said a senior executive of Maruti Suzuki.

True Value was started in 2001 which became the first attempt by a company in the organised used car market. The company rapidly expanded its network and as of last year clocked sales of 350,000 used cars.

This existing True Value network will be either phased out or get upgraded in due course. These outlets will also continue to sell uncertified cars which will be of a brand other than Maruti Suzuki.

Kenichi Ayukawa, Managing Director and CEO, Maruti Suzuki said, “We want to offer buyers of pre-owned cars the same experience as buyers of new cars. A network of spacious new outlets, using digital technology for customer convenience, will be the highlight of True Value. Our focus will be on quality cars, refurbished and certified with the assurance of warranty.”

At present, there are broadly five different ways to sell used cars — through dealers, brokers, online, pre-owned outlets or through friends, family, and acquaintances.

The unorganised market makes up 85 percent of the total used car market which as per estimates is growing by 10-15 percent every year and is between 1.2 times and 1.5 times of the new car market.

The unorganised market is not impacted by GST whereas sales through the organised channel attract a GST rate of 28 percent on the cost of refurbishment done on the vehicle.