Hero Honda drives into used-bike mkt
HERO Honda, the largest two-wheeler manufacturer in the world, has forayed into the used two-wheeler trading business under the ‘Hero Honda SURE!’ brand. Taking a cue from the passenger car market leader, Maruti Suzuki India (MSI), which spearheaded the used-vehicle business through Maruti True Value, Hero Honda has started SURE! at its 40 dealerships across India on a pilot basis. Maruti has sold around 90,000 cars through True Value, which was 16% of its total sales last year. Hero Honda SURE! is looking at the vast trading potential to generate new vehicle sales from the 7 crore stock of two wheelers on Indian road. Hero Honda, which sells every second two wheeler in the market is the first India company to launch this service in the two wheeler space. A senior Hero Honda executive confirmed that the company had launched the new marketing initiative and said, “It’s a pilot project, which has been started at some dealerships. We are experimenting with various models at present so as to evolve a right structure for this business.” As part of its strategy to remain India’s top two wheeler company, it has introduced a 110-check point quality parameter to assess the condition of used two-wheelers to develop SURE! as a reliable place to buy, sell and exchange pre-owned twowheelers in India. Hero Honda engineers recondition these used vehicles with genuine spare parts and the company also offers warranty on different vehicles and free service benefits. Convenient and easy finance options for both new and used two wheelers are also available at its different dealerships. The company refused to share the actual sales it has generated from Hero Honda SURE!, but sources at the dealership level say that the scheme is generating huge business and has been successful in luring customers to go in for new two wheeler purchases rather than a used one. Hero Honda SURE! dealers are also offering special price deals on buying new bikes and scooters