Germany’s largest automaker Volkswagen is expected to double its used car sales this year to 20,000 units, amid a shift in customer preference for used vehicles, according to a senior company executive.
Volkswagen entered the used car market in 2012 with the launch of its first Das Welt car showroom.
In June of last year, shortly after the pandemic hit the country last year, the automaker launched Das WeltAuto 3.0, the brand’s digital window to make buying and selling cars easier. opportunity via the DWA website.
âOver the past almost two years, the only clear change in customer preferences that I see is that customers are buying additional cars. This is motivated by the need for individual mobility. So people who can afford to buy a car again are more likely to buy an additional car, âAshish Gupta, Volkswagen Passenger Cars India brand manager, told PTI in an interaction.
The challenge ahead is for new buyers to enter the market and this is where the need for mobility is, again and again, driving demand, which is now shifting to used cars, Gupta said. .
He added: âIn this segment too, we have a strong presence with our brand Das Welt Auto.
âLast year we sold almost 10,000 used cars. This year we’re on track to sell 20,000. So that’s the kind of increase we’re seeing,â he said. he declares.
According to a study by Frost & Sullivan, commissioned by Volkswagen earlier this year, the used car market in India is expected to reach around 4 to 4.5 million cars by 2025, which will amount to nearly 1.5 to 2 times the new car market. he said.
âSo going forward, I think with this customer trend, or customer preference changing, we need to make sure that we maintain both streams (new and used car sales),â Gupta added. .
He said that alongside this change, one can also see a sharp increase in high-priced cars in the premium and luxury segments.
There seems to be a lot of revenge shopping in the marketplace where customers put off buying and now they go out and splurge on expensive purchases.
âAt the same time, I think there will be long term effects over two to two and a half years and you will see customer preferences shift to lower or lower purchase price cars. change which I foresee at least. Let’s see how it goes, “Gupta said.
The semiconductor shortage and supply chain issues has been the biggest challenge for the auto industry in 2021, which has also been caused by the pandemic in one way or another, he said. he declares.
Gupta added that at the initial stage, the company hoped it would not be affected by the semiconductor shortage “but it is affecting us now, with global supply being so limited.”
According to global analysts and based on the current situation, this will continue at least until the first half of 2022, he said.
He added: “I think it wasn’t until the third quarter that you would see some easing of the situation if we don’t have another lockdown or another wave of coronavirus hitting the world.” he said.
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