Volkswagen,the German Luxury car-maker plans to enter into the used car segment in India following BMW and Mercedes-Benz.Mercedes-Benz was the first luxury car maker to inroad into the used car segment in India in the year 2009.After that,BMW entered in June,2010.
The Director of Volkswagen passenger cars,Group Sales India,Mr.Neeraj Garg revealed that they have been in the Indian market for quite sometime. They think there are people who want to change their car after two-three years and hence there is a demand for pre-owned cars here and they think this is the right time to enter the segment.Anyhow,he refused to say when.But it seems that Volkswagen may foray into this venture by May.
Arif Fazulbhoy,the Director of Fazulbhoy Motors which is one of the largest used car dealers in Mumbai informed that the organized sector is hardly four to five per cent of the total used car market. But if considering people like them who are in a way organized, offer warranty and other facilities, it can be said that almost 20 per cent of this market is organized.He also added that the entrance of the automobile companies into the used car business has not affected their business that much. There is a price difference of around 10 per cent between their prices and the prices others offer. For example, they would sell a 2004 model Mercedes for Rs 10 lakh, while others would sell it for Rs 12-14 lakh.
Volkswagen has two other brands under its belt – Audi and Skoda. Volkswagen Finance India, a part of Volkswagen Financial Services AG and wholly-owned subsidiary of the German auto maker, has recently received a license from the Reserve Bank of India to start a non-banking finance company to finance the company’s pre-owned cars.