Volkswagen India to widen dealer footprint

German auto major Volkswagen India has announced plans to expand its dealership network, with a view to maintaining demand for its products and help further develop awareness for its brand.

Currently, the company has 111 sales points, which also include 21 pre-owned car sales centres called ‘Das Welt’. It also has over 100 workshops. The idea is to open 15 more sales outlets by the end of this calender year, involving some Das Welt outlets as well, Volkswagen Passenger Cars Managing Director Arvind Saxena told Deccan Herald.

According to Saxena, Volkwagen as a company has focussed on markets across sectors. “We have opened outlets in all major markets, which include metros and other big cities. Subsequently, we also penetrated Tier II cities,” he said, adding that the outlets to be opened this year may also include some in the semi-urban areas.

All the company’s existing outlets as well as those expected to open this year are franchisee-owned and operated, and require anywhere between Rs 7-12 crore (excluding land prices) to set up.

Putting its plans to action, the company on Tuesday inaugurated two new outlets in Bangalore. “Karnataka contributes around 7.2 per cent to our overall India business,” Saxena said.

Volkwagen has grown rapidly during its first four years in India. It sold 66,880 units during 2012, of which 36,679 units were the Polo, and 25,828 were the Vento. These two cars are the company’s most popular models in the country and constitute the bulk of its sales.