Volkswagen India has joined hands with Frost & Sullivan for ‘Indian Pre-owned Car Market Study’.
The collaboration has been announced by Volkswagen through its pre-owned car business Das WeltAuto.
The study will emphasise on the importance of the growing used car market and the important indicators that drive the segment currently.
Key topics to be covered by the study include, Consumer demographics and expectations,
Current ownership and usage patterns across age groups and cities, demographics, Growth trends of the used car market in India – current and expected market offerings, Trust while selecting a pre-owned vehicle, Usage of value added services such as certification, warranty, service packages and service support, Growing need to purchase pre-owned vehicles through established channels, and Choice of purchase via offline or online platforms among other things.
The outcome of the study report will help organized pre-owned car businesses such as Das WeltAuto. to understand customer requirements, behavior and buying patterns, in-turn providing customers improved customization, transparency and affordable personal mobility solutions.
Talking about the partnership, 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.”
He added: “Even today, on a M-O-M 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 customized services under one roof.”
Kaushik Madhavan, Vice President, Mobility (Automotive & Transportation) Practice, Frost & Sullivan, said, “The organized 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.”
What car buyers want
Across segments, car buyers are today looking at differentiated and easy options of vehicle ownership. DWA said it is setting a benchmark in the organized used car business.
DWA centres provide 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.
There are 105 DWA facilities across India. They are a one-stop solution that offer a strong value proposition in the affordable and organized pre-owned segment.
It has enabled digitalisation across the business thanks to DWA Valuator App and setting-up of DWA Excellence Centers for a contactless and seamless experience.
(With inputs from Automotive Lead Research Team)
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