German carmaker Volkswagen Passenger Cars India, through its pre-owned car business Das WeltAuto has announced collaboration with Frost & Sullivan, a leading market intelligence company, for a joint and detailed study on the Indian pre-owned car market.
The report will emphasise on the importance of the growing used car market and the key indicators that drive the segment currently. The study will provide insights on the following key topics:
- Growth trends of the used car market in India – current and expected market offerings.
- Consumer demographics and expectations.
- Current ownership and usage patterns across age groups and cities, demographics.
- Trust while selecting a pre-owned vehicle.
- Usage of value-added services such as certification, warranty, service packages and service support.
- Choice of purchase via offline or online platforms.
- Growing need to purchase pre-owned vehicles through established channels, and more.
The partners say the analysis from the report will help organised pre-owned car businesses such as Das WeltAuto, to understand customer requirements, behaviour and buying patterns, in-turn offering customers enhanced customisation, transparency and affordable personal mobility solutions.
Commenting on the announcement, Ashish Gupta, brand director – Volkswagen Passenger Cars India said, “The used car business has immense growth potential in India and offer a strong value proposition for our consumers and business partners. In 2020, we observed an immediate shift in buying pattern of consumers, moving to affordable mobility solutions instead of a new car due to the pandemic situation. Even today, on a month-on-month basis, we’re witnessing approximately 10% growth in our used car volumes. Through this collaborative study with Frost & Sullivan, we further intend to understand consumer requirements, in order to offer them an enhanced value proposition and customised services under one roof.”
Kaushik Madhavan, VP – Mobility (Automotive & Transportation) Practice, Frost & Sullivan said: “The organised sector of the pre-owned passenger vehicles business in India is expected to reach a market share of 25% in 2022 from 18% in 2016. This is because of a significant shift in focus, where customers are ready to pay more for getting reliable vehicles at a reasonable price, instead of opting for low-cost and unreliable deals.”
Volkswagen India says car buyers across segments are looking at differentiated and easy options of vehicle ownership and its pre-owned car business Das WeltAuto (DWA) is setting a benchmark in the organised used car business. The DWA facilities offer buying, selling and exchanging of multi-brand pre-owned cars and isn’t restricted to customers looking to exchange their existing cars for a new Volkswagen.
At present, there is over 105 DWA facilities across India which act as a one-stop solution that offers a strong value proposition in the affordable and organised pre-owned segment. The brand has enabled digitalisation across the business with the introduction of DWA Valuator App and setting-up of DWA Excellence Centres for a seamless and contactless experience.