Volkswagen targets 20% growth in used car sales in FY21

German passenger car major Volkswagen, which is betting big on its used car business as the Covid-19 pandemic has severely impacted new car sales in the country, aims to clock 20% growth in sales this year.

The company that operates under its own used car chain, Das WeltAuto, is looking at doubling sales of used cars this fiscal in India, Steffen Knapp, Director, Volkswagen India told DH.

Last year, the company sold around 10,000 used cars in the country. “Customers are looking at commuting in their own vehicles instead of taking public transport due to the pandemic. The new car sales are also down this year as many people, unsure of their jobs are not purchasing. So, we are focusing on our used car business,” he told DH.

Until last year, Volkswagen sold one used car for every five new cars. Now, its used car sales are as much as new cars, Knapp said.

Volkswagen has set up 104 dealerships in the country which are digitised, through which it also sells used cars.

It will sell various car brands other than Volkswagen cars at these outlets, he said. Apart from offline outlets, the company has also made available the pre-owned cars on its digital platform, he said.

Last year, almost 60% of its used car sales comprised of Volkswagen brands. “We are offering multiple brands including Volkswagen. Customers can choose what they want. The response has been very good so far as they are now assured of good quality, extended warranty on the product,” Knapp said.

Volkswagen has been operating in India since 2007.

The used car market is estimated at 2.8 million units in India and is growing faster than the new car market. “We expect to clock a growth of 20% in the used car sales this year,” Knapp added.