Customers looking to exchange an old car for a new model are becoming key targets for car companies to woo them to buy a new model from their stable as rising interest rates on car loans are keeping sales under check.

Currently, 12-13 per cent new cars (about 150,000 units) are sold under exchange schemes; and the number is rising to touch 20 per cent by 2010. 

For Maruti Udyog, the largest player in this market, the number of cars sold under the exchange scheme has nearly doubled from 8 per cent in 2004-5 to 14 per cent.

MUL, which first started a comprehensive exchange scheme 'True Value' in 2000, saw sales of around 76,500 new cars coming out of the scheme in 2006-07.

The company sold 84,500 units of old cars in the financial year 2006-07, earning Rs 1,483 crore revenues. The number is higher as many customers sell cars without buying a new one.

Maruti's 'loyalty strategy' under True Value also paid off. Many customers, while selling their old cars, are buying  the  same  models  in  exchange.

"We found 36 per cent customers, who sold their old WagonR under True Value last year, exchanged it for  a new WagonR. The figures for Omni stands at 35 per cent while 28 per cent of  Alto customers opted for new Altos," a senior executive of Maruti said.

The second largest car-maker, Hyundai Motor India, which entered the market in April 2006 with its 16 'Hyundai Advantage' outlets, saw 15 per cent of its fresh sales generated from the exchange scheme. 

"Dealers are told that 15 per cent of new cars sold should be through the exchange scheme," a company executive  said.