Volkswagen Enters used Car Business

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Volkswagen Enters used Car Business

Volkswagen announced its entry into the used car business in India by inaugurating its first used car dealership here on Tuesday. Das WeltAuto is Volkswagen’s global pre – owned car business and the company commenced operations with 15 dealerships spread across India.

Addressing the media at the inauguration of the dealership, Arvind Saxena, Managing Director, Volkswagen Passenger Cars, Volkswagen Group Sales India Pvt. Ltd said, “we will end the year 2012 with 21 dealerships, and plan to take the number to 50 dealerships next year.” Das WeltAuto dealerships would trade in car models from all manufacturers and would not be restricted to Volkswagen car lines.

Further, Mr. Saxena said, “ We are the only company selling other branded cars with a warranty.” He said the company’s investment, which would be very low, would go into training for handling processes and evaluation.

“The dealer would invest in infrastructure and hiring of the people,” he said. According to Mr. Saxena, the used car market is growing at about 17 per cent annually while the new car market is growing at 12 per cent.

However, the organided used car market which is backed by original equipment manufacturers ( OEMs ) is growing at 37 per cent. Going forward, he said, about a fourth of the sale of dealerships could be through exchange of used cars. “Out of the total sale, about a third of the first – time customers upgrade and we want to take advantage of that”.

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