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T.S. Mahalingam & Sons was founded by T.S.
Mahalingam in 1935. This Rs 250 crore Company was formed to
cater to the second-hand car market in Chennai. 65 years later,
with 15% of the market share, they are still going strong. Now run
by the third generation, T.S. Mahalingam & Sons is even today
the market leaders in the used car market. www.chennaibest.com
speaks to K. Ravishankar, Partner, T S Mahalingam
& Sons.
On an average, how many used car transactions
take place in the city every month?
Around 1,800 to 2,000 cars a month.
What is the profile of the used car buyer
in Chennai?
 First-time
buyers could be people who want to graduate from two-wheelers to
cars. Usually, the middle management level. People with a salary
of Rs 20,000 to 25,000 per month, small businessmen, traders etc.
Usually people buy used cars to save money or because they want
a certain model of car that they would not be able to afford brand
new. It could be a second car in the family, car for the working
wife and Commercial applications such as transportation (door delivery)
or ambulance services.
How does the used car market in Chennai compare
with that in other major cities?
The used car market in Chennai is much more organised than in other
cities.
What are the used car finance options available
to the buyer?
Usually the installment can range from Rs. 2,000 to Rs. 10,000
per month. The maximum tenure is 3 years. Financial Institutions
and Banks form the major financiers. Institutions like ICICI,
Kotak Mahindra, Sundaram Finance and banks like Citibank
and Standard Chartered Grindlays bank etc.
But banks and financial institutes do not lend for cars that are
more than four years old. These cars usually go to the unorganised
sector (private financiers) who go by the buyer and not the car.
What has been the response to Car Melas that
have offered Trade-ins and Car finance?
T S Mahalingam & Sons are the pioneers of trade-ins in the
city. About 4 to 5 years back, the response used to be tremendous.
We used to sell about 70 to 80 cars in a day. But things have slowed
down a bit now
 With
so many new cars entering the market, has it changed the used car
market in any way?
Yes it has. The used car supply has increased because of so many
new cars in the market. People want to go in for the latest models.
How has the Euro II emission norms affected
the sale of used cars in Chennai?
Euro II has not affected us much, as the norms are not applicable
to used cars, as of now.
What is the general perception among buyers
about LPG Gas conversion?
People are willing to take the risk, as it is very economical.
It saves about 60 to 65% in cost.
How important is the Registration Number
when it comes to buyer's choice?
It was important some time back, but not any more. Only the people
from moffusils are still particular that all the numbers do not
add upto 8. They are superstitious about the number '8'.
Author : Anuradha Sriraman
Photographs : Leslee Lazar |
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