Yes sales of new cars has been down for a while now.But now it is hurting where it hurts the most.For long honda has been proud about the resale value of its cars and even used it as a sales strategy for new cars.But now things have all changed Honda city resale value has fallen by 25-30% and that too just from the date when fuel prices where increased.Honda was always going to be the most affected simply because it had only petrol cars in its portfolio.What is interesting is that according to the report[BS] Honda civic too has been badly hit with everybody in a hurry to sell but relatively fewer buyers for the car in the seconds market.
Is Honda the only company affected no,General motors have been way too slow in adopting diesel into its line-up when it comes to the more mass market cars[leaving aside the tavera].
The ford fiesta too is suffering with the bad resale value and fords problems seem to continue with resale value of their cars.
The huge discounts on the Toyota Corolla and the lack of demand has affected its prices too in the seconds market.The mitsubishi lancer cedia is another car which is not doing well in the seconds market.
For a while it was the golden run of C and D segment cars in India but that run has abruptly come to an end.
According to the report there is an oversupply of the Honda Civic, Hyundai Elantra, Ford Fiesta, Mitsubishi Lancer, Toyota Corolla ,Honda CRV, Ford Endeavour and the Hyundai Tuscon in the seconds market.
So what are Indian buyers buying now.Well we too have taken to the smaller is better strategy and if at all a bigger car is purchased it is a diesel.Maruti and hyundai are the more popular choices in the seconds market with WagonR, Zen, Alto, M800, Swift, Omni and Hyundai's Santro and Getz being the most sort after.
[source:Business Standard]
