Volkswagen to set up compact showrooms in non-metro areas

According to a media report, Volkswagen is planning to reduce the number dealerships and set up compact showrooms in non-metro areas.

VW dealer-partners will set up small stores called pop-up stores. These will be between 2,000-3,000 sq. ft. in size compared to a regular showroom, which is around 25,000-30,000 sq. ft by area. The pop-up stores are likely to have space to display 2 cars instead of 8-10 cars that are housed in a regular showroom. The first pop-up store has been launched in Bangalore and 30 such pop-up stores will be opened this year.

The smaller size also means that the investment required to set up these stores will be much lower than a regular dealership. It is estimated that these stores would cost Rs. 55 lakh to erect, compared to an investment of Rs. 15-18 crore that is required to setup a regular showroom.

Volkswagen has also reduced the number of dealerships from 80 to 63. The carmaker plans to bring this figure down to 50. 

Source: Moneycontrol