Volkswagen India is planning to enter the country’s pre-owned car segment by FY 2012. Mr Neeraj Garg, Director, Volkswagen Passenger Cars, Volkswagen Group Sales India, told mediapersons last week that the company expected a good number of premium car owners to upgrade to VW’s used luxury cars. A Credit Analysis and Research Ltd. report says that the used-car market in India, which stood at 1.5 million units in FY 2009, is growing at a compound annual growth rate of 20 percent.

With several luxury car companies like BMW and Mercedes-Benz entering the business, customers are expected to switch from unorganized players in the segment to organised, company-owned used-car dealerships. While BMW India was an early entrant into the business, and is looking to sell 100-200 cars this year through ‘BMW Premium Selection’, Mercedes-Benz too recently announced that it was seriously considering entering the segment.