HMSI plans to double used 2-wheeler business network by FY2018

As in the four-wheeler market, there is a growing segment of used vehicles in the two-wheeler industry in India as well.

The highly unorganised market is estimated to be around 8 million units a year — half the number of new two-wheelers sold in India. Honda Motorcycle & Scooter India (HMSI), which inaugurated its 100th Best Deal outlet in Mumbai today, sees strong potential in this segment as the replacement cycle of two-wheelers, it says, has come down to 3–5 years from 7–8 years within a decade. Best Deal is the brand name for Honda’s used two-wheeler business. The latest outlet in Mumbai is owned by an existing dealership, Jhaveri Honda.

The growth in the Best Deal business, which started off five years ago as a pilot project , has been slow so far. But HMSI wants to up the speed now on. The plan is to open the 200th outlet by March 31, 2018.

“One of the biggest barriers we found was the lack of transparency in the system like vehicle history, ownership, maintenance. Selling isn’t a problem in the market, but buying is because of the lack of transparency. Considering these challenges, we worked our own ‘to do’ list. Very clearly, it has to be organised. To make it organised, we made a separate vertical within the sales and marketing division at Honda. We took support from the aftersales team also so that we can work out the checklist points”, says Yadvinder Singh Guleria, senior vice-president (sales & marketing),

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