The Indian unit of the premium German automaker, BMW has entered into the pre-owned car market in the country with the launch of BMW Premium Selection.

The BMW Premium Selection will only offer cars that are not older than five years and which have run less than 1.2 lakh km. the company is also offering a 24 months or 2 lakh km, whichever is lower with the cars.

Andreas Schaff, president of BMW India said all the dealers of the company in the country will begin used car business within a year-and-a-half. The company is aiming to generate a tenth of its India revenues from used car business.

"Till October-end we sold a total of 8,042 cars in India, accounting for 40% of the luxury car market. With the BMW Premium Selection, we are looking to enhance our position. But the market is sluggish and it may be tough to achieve the 10,000 unit mark," said Schaaf.

The company is also offering 13% interest rate for financing used cars int eh country in order to boost the sales, through its financial services arm BMW Financial Services compared to the market rates of about 18 per cent.

Company's rival, Mercedes Benz had entered the used car market in India last year.