Bengaluru, Sep 11 (IANS) Global auto maker Toyoto will auction used cars of all brands in India through its subsidiary Toyota Auction Mart (TAM), a top company official said on Friday.
“We are venturing into car auction business through a mart at our Bidadi plant for providing reliable service to our customers and develop a transparent used car ecosystem,” Toyota Kirloskar Motor (TKM) managing director Naomi Ishii told reporters here.
The Japanese automobile major has been in auction business through affiliates over 45 years and sold eight million used cars in 2014, generating $226 million (Rs.1,500 crore).
“We will enable faster disposal of used cars at right price and right quality to buyers and contribute to society,” Ishii said.
TAM, which will take Rs.2,000 as commission from every seller and buyer, will conduct its first auction on September 15 at Bidadi plant, 35 km from here, and hopes to hold two auctions monthly from October.
“The used car market is growing rapidly in the country, as evident from sale of 3.5 million units in 2014, outpacing sale of new cars. We are entering into this business to expand our customer base than retain our own customers,” said TKM director N. Raja.
The company will evaluate used cars and give rating to enable buyers get right value for money.
“A prospective buyer will get an opportunity to check many cars of different brands at place and save time on visiting dealers across the city,” Raja said.
All used cars will go through a 203-point inspection to assess their condition to ensure their quality, durability and reliability after due diligence of documentation.
“With more buyers relying on organised market, we will be able to expand the secondary car market and help dealers increase new sales by liquidating their used car inventory,” Raja added.