Volkswagen bets big on used cars

Automobile major Volkswagen (VW) is ramping up its used-car business by purchasing vehicles from the market in a tie-up with various second-hand car platforms. It is seeing a huge opportunity in the space after the lockdown is lifted. This is because people are likely to choose individual mobility over public transport.

The company sold around 20,000 used cars last year and plans are to surpass this number, Steffen Knapp, director, Volkswagen India, said.

The company has its own used car chain Das Weltauto and has been focusing on exchange of cars. However, plans are to ramp up this business by purchasing used vehicles from the market in tie up with car platforms.

It is building up the number of evaluators in this business. The company has almost tripled the number of evaluators in the network after ensuring that they have experience especially in used cars. They can evaluate the vehicle, refurbish it and make it to the Volkswagen standard, in terms of quality, eventually moving the vehicle for sales. It has specialised Das Weltauto excellence centres for used cars, used-car warranty, refurbishment with genuine parts and financial services, all under one shop.

“We are looking to double business in the used car business segment as compared to 2019. Our focus will be to sell more than what we sold last year – 20,000 used cars,” said Knapp. VW has 105 outlets in the country, which are fully digitised, to sell used cars.

It has specialised Das Weltauto excellence centres for used cars, used-car warranty, refurbishment with genuine parts and financial services, all under one shop