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Case Study-Premium Car Exchange Market in India- Focus on Audi, BMW and Mercedes with Concentration by Ankur Gupta

Article Author Biography
Case Study-Premium Car Exchange Market in India- Focus on Audi, BMW and Mercedes with Concentration by
Article Posted: 01/27/2017
Article Views: 383
Articles Written: 1063
Word Count: 935
Article Votes: 0
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Case Study-Premium Car Exchange Market in India- Focus on Audi, BMW and Mercedes with Concentration

Case Study-Premium Car Exchange Market in India- Focus on Audi, BMW and Mercedes with Concentration on Marketing Initiatives” provides a comprehensive analysis of premium car exchange market in India. The report covers total car sales for premium brands and car sales through exchange and exchange contribution. The report thoroughly covers organizational structure for the team involved in exchange process with their detailed analysis on sourcing, qualifications, trainings and salary. The report also covers customer interface for car exchange business with types of advertisement for car exchange as a part of promotional activities. The regions and cities which works well for premium car exchange business has been showcased in the report, along with the compliance and norms followed by companies for car exchange. The report provides coverage on quality check list, average ownership period, discount bonus on car exchange and assured buy back offers for car exchange 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. 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.

Organisational Structure (Dealer and Company Level) At the dealer level, pre-owned car sales manager, executives and evaluators are the ones who manage exchange operations, while at the company level, the sales head is the governing authority which surpasses the discounts and promotion policies for exchange and regulates the exchange operations for the dealers. The organizational structure is similar for almost every luxury car exchange company namely Audi, BMW and Mercedes.

Sourcing, Qualification and Salary (Dealer and Company Level) The sourcing, qualification and training methods adopted at the company level and dealer level are similar for the premium car brands including BMW, Audi and Mercedes. The sourcing of the Sales head who oversees the exchange operations is appointed through succession planning internally. Annual CTC for the Sales head at the company level tends to be under the range of INR ~ million- ~ million, which varies depending upon the experience and knowledge. However, at the dealer level the evaluators are appointed directly through dealers, while the pre owned car sales executives and manager are appointed by the company.

Training of Personnel The regular training is provided by the sales head at the dealer level, while an orientation program is organized at the company level. For the personnel at higher designation including sales and marketing executives, the company also organizes trainings to update them about new product and specifications. Regular training programs for sales and procurement personnel are conducted to ensure the efficacy of sales personnel. For this, employees in pre owned and new sales are sent to their overseas training centers in Germany. For the soft skills training at the dealer level, an outsource team is appointed which organizes training at a particular center, where the participants has to appear.

Customer Interface for Exchange 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. Once the customer visits a dealer showroom, the sales consultants entertain the potential client and inform him about the car exchange process if the client is interested to purchase a newer car. To make the car exchange more lucrative, the dealer also offers additional exchange discounts to the customers who are interested to exchange their existing car to buy a newer one.

Exchange Contribution to Overall Sales Audi India: During 2014, the company launched a separate pre owned department for Audi named as Audi Approved plus, which was responsible to handle the car exchange and pre owned cars business. Hence, the sales of Audi through exchange have grown robustly to ~ during 2015, with a share of exchange reported at ~%. Mercedes India: Mercedes among all the luxury car makers has reported highest share in car exchange across the years 2010-2015. The share of car sales through exchange has grown from ~% during 2010 to ~% in 2015. Mercedes has relatively higher growth of exchange business primarily due to highest exchange bonus amount which are passed to the customers. BMW India: The car exchange business for BMW is not much popular as the share has just been reported at ~% during 2015.

Average Ownership Period for Premium Car Brands In India, there has been a substantial reduction in the ownership cycle of vehicles. Roll out of new car models, inclining personal disposable income, lucrative car exchange offers and assured buy back schemes launched by car companies has diminished the car ownership period. Earlier, the average ownership period for premium cars were estimated to be around ~ years which has now reduced to ~ years.

Key Topics Covered in the Report:

• Organizational Structure for Exchange Team • Sourcing, Qualifications and Salary for Employees in Car Exchange Department • Training of Personnel • Customer Interface for Car Exchange Business • Inclusion of Exchange in Promotional Activities • Exchange Contribution to New Car Sales, CY’2010-CY’2015 • Exchange Facility Visibility for Major Luxury Car • Which Regions/ Cities work well for exchange offers • How Car Exchange Process Works for Luxury Car Companies • Compliance and Norms Followed by Companies for Exchange • Customer Perception of the Experience Provided during Exchange Process • Quality Check List for Car Exchange • Certification Process for Old Cars • Average Ownership Period for Premium Car Brands • Discount Bonus on Car Exchange and Eligibility • Assured Buy Back Offers for Premium Car Brands • Analyst Recommendations


Contact: Ken Research Ankur Gupta, Head Marketing & Communications +91-9015378249

Related Articles - Number of Premium Cars Exchanged, India Audi Used Cars Exchanged, Car Exchanges BMW India,

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