German auto major Volkswagen announced a foray into the Indian used car market with the launch of its 'Das WeltAuto' arm here.

Mr Neeraj Garg Volkswagen Group Sales India Member of Board and Director told reporters that the company will sell both VW and non VW branded cars under the pre owned car business. He said that VW will set up about two to three 'Das WeltAuto' showrooms in India during the first half of the year.

Commenting on the rationale behind the launch of a new business, Mr Garg said that "With a healthy customer base and a strong network established in the market over the last couple of years, it has encouraged us to bring in our global pre owned car business into the country."

Asked about the investment involved in the new venture, he said it will be borne by the company's dealers, who would set up separate showrooms for the used cars.

After setting up shop in India five years back, he said a pre owned car business was the only milestone left for the company to package itself as a one stop shop for customers.

Mr Garg said that "About 30% of all the inquiries that we get at our showrooms are for exchange. While we may not be able to convert all of them into purchases, we are definitely looking to tap them as well.”

He said that in 2011, the company sold 78,408 units, translating into a growth of 140% vis a vis the previous year.

(Sourced from ET)