Speaking to TechGraph, Sumit Garg, CEO and co-founder of Luxury Ride, said, “Like any other industry, even the used car industry has been impacted by the pandemic.”
Read the full interview:
Could you give us an idea of how far Luxury Ride has come since its inception? From when it started to where it is now?
Sumit Garg: When Luxury Ride started in 2012, we struggled to get the cars to show up in our first showroom in Delhi. At that time, I asked my mentor and startup investor to lend me some cars just to display them in the showroom. But over the years we have come a long way thanks to our passion for luxury cars in perfect combination with perseverance and hard work.
Our second outlet in my home town of Karnal so far is India’s largest single location showroom with the capacity to display over 50 cars. Since then there has been no turning back and today Luxury Ride has 7 showrooms across North India in New Delhi, Gurugram, Karnal, Ludhiana, Chandigarh, Jaipur and Dehradun.
How are you preparing for the very disruptive sector of used luxury cars?
Sumit Garg: The used car market in India is witnessing a phenomenal increase in the millennial population as the potential consumer base of the industry. Harboring a relentless love for luxury cars, they seek rewarding deals. But the industry was highly fragmented due to the presence of a handful of big players who catered very little to this emerging consumer base, which negatively impacted the growth of the space and severely undermined consumer confidence in the sector.
Understanding the consumer requirement Luxury Ride offered a cost effective service with the assurance that genuine spare parts are used to inspire confidence in the potential customer with the safeguard of 150 parameter control. Over time, we have added modification services, insurance and roadside assistance to ensure we become an end-to-end solution for our customers. In each point of sale, keeping in mind the young consumer, we maintain a relaxed atmosphere. On top of that, Luxury Ride offers a 15-day money back guarantee, premium financing options, best insurance deals, and a buyback guarantee to ensure a hassle-free experience for its customers.
How is the response so far to your services?
Sumit Garg: At Luxury Ride, we aim to create a customer experience with the help of our quality product sales and service. Customers who purchase from our outlet have greatly appreciated our assured buyback services. Along with this, the cars sold by us comply with LR certified parameters and also offer an extended one-year warranty to add value to customers.
Focusing on 360 consumer lifecycles, Luxury Ride offers a basic 3-year service package on retail cars, which has been appreciated by customers. Additionally, we are continually striving to organize the used luxury car market by raising our service standards that help build customer loyalty and loyalty.
How does Luxury Ride leverage technology to improve the customer experience?
Sumit Garg: Luxury Ride provides an end-to-end technology-driven ecosystem for buying, selling and servicing luxury cars. Our business is based on the omnichannel model to ensure presence and ease of service across online and offline connected channels.
This allows customers to get a blended experience of seamless virtual tours to explore the options to browse the wide range of products and models available, as well as the ability to physically visit the showroom to get a feel and examine the car before purchase.
What are the new trends in the luxury car sector?
Sumit Garg: Over the years, there has been a paradigm shift in consumer behavior. The desire to always own the latest car with advanced technology has dramatically shortened the period of ownership. There is a general tendency to replace cars every 4 years, which used to be 6-8 years.
Additionally, today’s consumers are very aware of the depreciation rate of the new car where its value drops by 30% in the first year of the purchase itself. For them, a used car is a better deal and more lucrative.
This is driving demand for used luxury cars that fulfill the desire for advanced technology vehicles with unbeatable performance and comfort at the price of an economical new car.
The pandemic has further given the desired boost to the industry as it has given rise to the need for personal mobility. But given the financial stability due to the uncertain times, people preferred to opt for used cars given the surge in new car prices to comply with BS-VI standards as well as the long waiting period due to the shortage of semiconductors.
What do you plan next for Luxury Ride?
Sumit Garg: Currently, with 7 outlets in the country, we at Luxury Ride are working to increase our penetration deeper in the market and make our presence PAN India. We plan to create 50 new showrooms in the next 4-5 years and during this expansion we also want to focus on diversifying our business. We want to make Luxury Ride the leader in 360 degree solutions in the used car industry.
Tell us about expanding this business idea into the used car industry? How many outlets are there for Luxury Ride and what is your goal?
Sumit Garg: Recently, the automotive sector has been extremely volatile, which has created the right combination for the growth of the used car market. Given the increase in disposable income, the sector relies on a wide range of audience beyond the reach of ultra-high net individuals. The millennial population is becoming the industry’s potential consumer base that has a strong affinity for owning a luxury car.
This emerging clientele is very wise when it comes to satisfying their extravagant desire to maintain financial stability. For them, a used luxury car appears to be the most viable option meeting their needs.
The pandemic has further provided the desired boost to the industry as the need for personal mobility has increased given the disruption of public transport and the need to enforce social distancing norms. Even with the restart of public transport, fear of hygiene was unrelenting among the population. Therefore, the used luxury car market offering more affordable options with uncompromising performance and advanced features was preferred over the new economy car at almost the same price range.
Challenges and business impact during COVID and has it affected your sales? Also, what about after covid, has the situation changed in the direction of an increase or a decrease in demand?
Sumit Garg: Like any other industry, even the used car industry has been affected by the pandemic. Even we had some ups and downs during the period, but we quickly saw an increase in sales in the post-pandemic era giving rise to growing customer confidence with the emergence of more organized players in the segment. during the COVID period.
What about the Tier 2 and Tier 3 market, is demand increasing or decreasing specifically for luxury cars or used luxury cars?
Sumit Garg: From the beginning, metropolitan cities have been the hub of major transactions for the sale and purchase of used luxury cars. Over the years, the position remains strong with the maximum purchases materializing in metropolitan cities. But with the onset of the pandemic, there was a unanimous demand for premium brands with unparalleled performance and services which also within a limited budget in Tier 2 cities as well as Jaipur, Chandigarh and Dehradun for n’ to name a few.
Do you have any plans you would like to mention or tips before buying a used luxury car?
Sumit Garg: We are working intensively on upcoming activities. The team is involved in formalizing new plans which will be rolled out shortly and announcements will be made closer to the launch of the event.
As I said earlier, we want to penetrate deeper into the market where Luxury Ride is establishing its name as synonymous with end-to-end products and services in the used car segment.
A little advice to all budding buyers to study the history of the car well before making a purchase. Be sure to revalidate crucial information such as mileage numbers and important documents. Look at the number of distances traveled to get a clear picture of the real value of the car. be sure to take it for a test drive, it gives a taste of how the car feels. It helps customers understand various factors such as seat height, steering feel and wheel adjustment.
An interview with Luxury Ride MD and co-founder Sumit Garg – TechGraph
Source link An interview with Luxury Ride MD and co-founder Sumit Garg – TechGraph