Following the news that Volkswagen Finance Pvt. Ltd. (VWFPL) India, part of Volkswagen Financial Services, has acquired a majority stake in Chennai-based automotive fintech platform KUWY Technology;
Animesh Kumar, Director of Automotive Consulting at GlobalData, a leading research and consulting company, offers his view:
“A key component of VW Group’s India 2.0 strategy, which targets sustainable growth in India, is to grow the used car business. VWFPL currently offers vehicle financing and insurance solutions for both new and used vehicles in the country. VW’s subsidiary Skoda launched its certified pre-owned vehicle business in October 2020 to enter organized used car business in India. The company had already invested in KUWY in September 2019, acquiring 25% stake.
“The COVID-19 pandemic has reinforced the need for personal mobility and since affordability is a concern for a vast majority of customers in the country, used vehicles are the most suitable option. It is also evident from the fact that the sales of used vehicles are increasing globally.
“KUWY Technology simplifies auto financing through end-to-end digital loan approval, processing and disbursal. It offers digital financing capabilities and claims to have the largest automotive dealer and lender network. It has expertise in the pre-owned car financing business. These capabilities will help VWFPL to expand both its new and used car financing business and will be able to offer value added services through digital channels.”