Volkswagen, one of the leading Germany based car maker, has announced its debut into the pre owned car business in the Indian car market. In a move to establish itself in the Indian market, which has exceptionally high demand for used cars, Volkswagen India has introduced its branch called ‘Das WeltAuto’. This sub division of the company will deal in selling not only the used cars falling within the VW portfolio but also the used cars of other auto makers in India.
During the first phase of 2012, the company has planned to establish three dedicated ‘Das WeltAuto’ showrooms; however, it was also clarified that the capital required for this venture in the form of setting up of separate showrooms, will be invested by VW’s existing dealerships.
The Volkswagen Group Sales India Member of Board and Director, Neeraj Garg said on this new initiative launch event, “With a healthy customer base and a strong network established in the market over the last couple of years, it has encouraged us to bring in our global pre-owned car business into the country. About 30 per cent of all the inquiries that we get at our showrooms are for exchange. While we may not be able to convert all of them into purchases, we are definitely looking to tap them as well,”
In the used car business, Volkswagen will focus mainly on its top selling cars in India, Polo, its compact hatchback and Vento, its entry level sedan. The long term player in the used car market with whom the VW group is gearing up to compete is the Mahindra & Mahindra’s First Choice. Besides, Maruti Suzuki India Ltd, Toyota Motor Corp., BMW AG, Honda Motor Co. and Daimler AG also have established themselves in this business but they deal in selling their own car variants.
