Used cars business in India tumbles - NANO Effect.

Now its the Used cars business which was caught by the grip of Nano Effect.
Dealers say the prices of the used cars have fallen over 20% since the announcement of Nano dates.

The Nano, expected to sport an on-road price of Rs 1.25-1.3 lakh (Rs 125,000-130,000) for the no-frills, base version, will compete with the compact cars of Hyundai Motors, Maruti Suzuki, Tata Motors and General Motors. Its high-end version, complete with air-conditioning, central locking, power windows and power steering, will cost approximately Rs 1.7 lakh (Rs 170,000).

Nano has pulled down prices of several models. For instance, a 2006-make Hyundai Santro is currently being offered at Rs 230,000 as against its regular price of Rs 260,000. Similarly, Maruti Suzuki's Zen Estilo is Rs 40,000 cheaper at Rs 260,000 as against the usual price of Rs 300,000. (via)

After all people would prefer to by a new Nano for Rs 1.2 lakhs to 1.5 lakhs rather than buying a used Maruti 800 at the same rate.

So is the Used car Industry vanished?
May be no because there are always buyers , but the profit margines of the dealers are certanly to decline. Many would not prefer to buy a used car they would rather buy a NANO at the same cost or a cost much lesser than that.

Over to you.
What do you think about it?

Even during recession Mercedes-Benz Inaugurates its new plant.

No one would believe that Mercedes-Benz launching its new manufacturing units in Pune , India. With an area of 100 acres of land and independent assembly facilities for passenger cars and commercial vehicles, the infrastructure was created to address future expansion needs, underscoring the long-term growth plans of the company in India.
The plant was designed to manufacture the current local-production portfolio of the Mercedes-Benz C-, E-, and S-Class, it is also flexible enough to accommodate additional production of other models from the Mercedes-Benz model range on the same assembly line, if required by future market demand.
This is another auto manufacturing company starting it plant in Pune after Tata Motors and Hyundai.

"In short one can say Recession has not yet hit Mercedes-Benz" OR "People in India are willing to buy it".