Volkswagen, Europe’s biggest car manufacturer, is planning to make a slew of launches in the Indian car market. The step is taken in response to strengthen its presence in the country.
Driven by the desire of having a good hold in the Indian market, the company also plans to enter the used car or pre-owned car business. This will give the company a better opportunity to poach consumers from market leaders like the Tata, Hyundai and the Maruti.
The wish to make a stronger hold in the country compels the company to make huge plans and investments for brand building activities. It has also opened some dedicated Volkswagen stores across the country and is expecting a high response from consumers within the next few months.
Mr. Makham Dhalivaal, newly-appointed MD of Volkswagen Passenger Cars, believes that even though the entry was late, India is a very significant market for Volkswagen. The company has a firm belief that India can never put the company into loss as it is one of the most rapidly growing economies of the world.
He further added that the pre-owned car business would be an essential part of their business venture and would definitely open up fresh revenue streams. This kind of business would enable different car owners to sell their old cars in exchange of Volkswagen car, again a simple way to boost car sale and strengthen its presence.
The idea of pre-owned car business came after observing the successful ventures of Hyundai’s Advantage, Ford’s Assured, Honda’s Auto Terrace and Maruti’s True Value. All these car manufacturers have their own used car companies under different brand names.