Imported Luxury Car Brands Eye Used-car Market in Taiwan

Taipei, Aug. 6, 2012 (CENS)--To maintain sales volumes in Taiwan, several imported luxury-car brands have set up their branded used-car sales division so as to develop new customer groups, in addition to introducing new models to the island.

Industry sources pointed out that some 500,000 to 600,000 used cars are traded in Taiwan a year, and the lucrative market attracts about 5,000 big and small used-car stores throughout the island. In recent years, the greatest majority of used-car vendors have joined different used-car sales alliances, such as SUM, HOT, CAR-OK and SAVE to upgrade their quality image.

Fortune Motors Co., Ltd., the founder of the SUM used-car sales alliance, pointed out that it aims to increase the number of sales points to 450 by the end of this year, as well as expand its services to auto repair and maintenance for higher profitability.

Mercedes-Benz Taiwan, the local subsidiary of the German luxury-car brand, has set up 16 used-car sales points throughout the island to vend second-hand Mercedes. Its major rivals, including BMW and Audi, have also followed suit to set up similar sales points.

Industry sources said that less-than-three-year used cars with certifications from the branded vendors are the most popular products in domestic market. Imported luxury brands, after intensive development, have formed a strong camp in the used-car market against local brands (in Taiwan, most of the locally made cars are Japanese brands).

Mercedes-Benz Taiwan said that it sold some 1,200 used Mercedes last year, and aims to challenge 2,000 units this year with a forecast based on its average 60% sales growth every year.

In Taiwan, used Mercedes are mainly sourced from corporate executive cars, customers' replacements, and test-drive models etc. These products have successfully developed a new customer sub-group for Mercedes-Benz Taiwan, including original clients' family members or first-time Mercedes buyers etc.