New Delhi: Honda Motorcycle & Scooter India (HMSI) on Wednesday tied up with Shriram Automall India for selling pre-owned two-wheelers in the country.
Through the tie-up, the partners aim to sell 3.5 lakh two wheeler units in the next three years.
"At present the industry lacks an organised and reliable structure. Through this tie-up we aim to bridge this gap," HMSI Vice-President, Sales and Marketing YS Guleria told reporters here.
Currently the contribution of pre-owned two-wheeler market is estimated to be around 15 percent of overall sales, but the potential is immense, he added.
"We aim to start from 40 towns and expect 100 percent coverage across the country in next three years. Through this arrangement we aim to sell 3.5 lakh units in next three years," Guleria said.
The tie-up with Shriram Automall would offer a reliable solution for selling pre-owned two wheelers, he added.
Honda also runs certified pre-owned outlets under the brand name 'Best Deal' and currently 60 such outlets are operating across 11 states.
While the Best Deal outlets would focus on Honda two wheelers, the pre-owned non-Honda units which it had accumulated through exchange offers for its new bikes will be re-routed to the market via Shriram Automall.
When asked about the expansion plans for Best Deal outlets, Guleria said: "We plan to take the number to 100 in the next one year. Annually we are selling around 20,000 units via these outlets annually," Guleria said.
Commenting on the tie-up, Shriram Automall India CEO Sameer Malhotra said the company aims to become the largest organised player in the pre-owned two-wheeler space.
"Initially our focus would be mainly on non-Honda two wheelers but if need arises we can also deal in Honda bikes and scooters," he added.
Shriram Automall India is wholly-owned subsidiary of Shriram Transport Finance Company.
Commenting on the company's business strategy, Guleria said the two wheeler maker aims to sell 45 lakh units in the current financial year.
The company is also looking to add 1,000 touch points in the current fiscal, taking the total number to 3,800 by March end.