With the inauguration of its first used car dealership in Mumbai on November 7, 2012, Volkswagen embarked on its journey of used car business in India. Das WeltAuto is the company's worldwide pre-owned car business and Volkswagen has started its operations in the country by opening 15 dealerships in India.
Talking to reporters 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, instead of being restricted to deal only in Volkswagen cars, would trade in used cars from all manufacturers. “We are the only company selling other branded cars with a warranty,” added Saxena. He also said that there would be very low investment from the company and that would go towards training employees for handling processes and evaluation. Saxena pointed out, “The dealer would invest in infrastructure and hiring of the people.”
Saxena also said that the used car market with an annual growth of 17 per cent was ahead of the new car market with 12 per cent growth. Backed by the original equipment manufacturers (OEMs), the organised used car market is, however, growing at 37 per cent annually. He further said that around 25 per cent sale of dealerships could be as a result of 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,” said Saxena.
Volkswagen had earlier in 2012 at the New Delhi Auto Expo announced about the inauguration of Das WeltAuto in the country and keeping its promise, the company has opened its dealerships in India before the end of the year.
