Mahindra Targets To Sell 1 Lakh Used Cars By 2014

[RSM]

Mahindra Firstchoice, multi-brand pre-owned car sales major from the group of Mahindra and Mahindra, has set a target to sell one lakh used cars by 2014, a top company official said today.

The company, with its 60 outlets across the country, has sold 10,250 used cars last year and expected to sell 18,000 cars this year, of which over 9,000 have already been sold, Shubhabrata Saha, CEO, Mahindra First Choice Ltd, told reporters here.

The company was confident of selling one lakh cars by 2014 and would open 300 more outlets by then, Saha here to inaugurate first dealership showroom, CAI Industries, in the city, said.

Stating that used cars have a market of 1.5 million vehicle in a year, with 20 per cent annual growth, he said that there was tremendous potential for the sector, with more people coming forward to buy used cars, particularly in Tamil Nadu.

Saha said that the company had recently opened its 'superstore' in Thiruvananthapuram and would soon be setting up one in Kochi and another in Bhopal.

Source - Economictimes

 

[cooldhaya]

Yeah the used car market is on the rise again!!

 

[RSM]

Fisrt Hyundai and now Mahindra. They all know market well.
I am not sure about Hyundai, but since Mahindra's solid build vehicles, they will find lots of buyers.

 

[Crazy cat]

Used car market is doing good now, with the help of institutions offering higher loan amount for used cars than before. As this is a multi-brand store, this target can be achieved with more branches and effort.

 

[cooldhaya]

Yeah they have a good network in chennai!! visited them before buying my car!! Unfortunately they didnt have any verna at that time!!!

Hey RSM they deal with all brands not only Mahindra vehicles!!

 

[vijay]

yeah mahindra's used car retail chain is for all available cars with all ranges and types and not just mahindra.

 

[350Z]

Only 1 Lakh By 2014? The Used Car Market has become much popular and is on its full paces. However, With such a growth competition has become stiffer in this area, Like we can easily spot every car manufacturer entering into this. The Key Question is How many of them can really provide buyers a used product which offers complete peace of mind? Only this decides their future here.

Drive Safe!
350Z

 

[RSM]

Mahindra First Choice lines up Rs 100-crore for expansion

Multibrand pre-owned car company Mahindra First Choice Wheels Limited has lined up an expansion plan of around Rs 100 crore over next three years. Mahindra First Choice vice president – operations told ET that the company is planning to ramp up the number of outlets from existing 102 to 300 in next three years.
He said

We are targeting A and B class cities to fuel our growth. We would be entering rural areas once we have our presence in major towns across the country. In the growth process we may go public.

The company, which enjoys 8% share in the organised pre-owned cars market, aims to clock a turnover of Rs 500 crore by this fiscal. Nationally, the pre-owned cars market is estimated at 1.5-1.7 million units per annum, and the profit margins are in the region of 8% on sales value. About 10% of this market is estimated to be in the organized segment.

He said

We are growing at 60% as against industry rate of 20%. Last year, we sold around 10,000 cars and we expect to end this year at 18000 cars. With expansion plans in place, we expect to sell 1-lakh cars by 2014. As far as demand is concerned it’s a reflection of new car market trends. The car which is hot in new car market is equally in demand in used car market.

The company is also going aggressive on tie up with banks and financial institutions for easy finance availability to its customers. “We have tie ups with all the major banks apart from our own Mahindra Finance Limited. We have a special arrangement with Syndicate Bank, which is offering vehicle loan at 9% which is almost half of what is being offered in unorganized pre owned car market,” he said.

The company may also enter the pre owned two wheeler market. He said

Right now our focus is on four wheelers only. But it’s on the card. We are evaluating the market size and feasibility of used two wheeler segment.

Source - Economictimes

 

[visran]

Mahindra First Choice Wheels inaugurates its largest store in New Delhi

Mahindra First Choice Wheels Ltd. (MFCWL), multi-brand pre-owned car company today inaugurated its largest store in New Delhi. M/s Garg Automotives LLP is located at RZ 29/2, Vijay Enclave, Dabri Palam Road and is spread across 15000 sq. ft. The showroom has a display capacity of more than 50 cars and will offer a range of services for customers including purchase and sale of pre-owned cars, car finance and insurance, fitment of car accessories and assistance with paperwork and documentation.
Rajeev Dubey, President, After-Market & Member of the Group Executive Board, Mahindra & Mahindra Ltd. inaugurated the new outlet which will also feature a new look and feel for the brand. This new image will now be rolled out across the MFCWL network throughout the country. “The pre-owned car industry often focuses only on the car transaction and not on the total experience of car-ownership. With this new store we hope to change this perception and create a unique, aspirational experience for the pre-owned car consumer, right from the point of entry till final exit. Our network in Delhi NCR has now increased to include over 25 dealers, making us well positioned to tap the potential of the pre-owned car market in the region,” said Rajeev.

“Since its inception in 2008, Mahindra First Choice Wheels has established a strong reputation in the Indian pre-owned car industry as a trustworthy and credible player. We are delighted to associate ourselves with the Mahindra name and look forward to offering customers a great purchase experience,” said Mr. Gaurav Garg, Director, M/s Garg Automotives LLP. Mahindra First Choice Wheels is the country’s preferred pre-owned car mart and is India’s only organized multi-brand player, with 161 outlets in over 100 towns across India. The company plans to expand this number to 500 outlets in the next three years. This implies that customers will soon be able to choose from a range of certified pre-owned cars throughout India, including the metros and tier-2 towns and cities.

Tremendous attention to detail is required to ensure that each pre-owned car meets a high level of quality. Before purchasing the car, a trained engineer thoroughly inspects the vehicle and also sees to it that all papers are in order. After purchase, every car is refurbished and undergoes an extensive 118 point quality check by a trained engineer, as part of the company’s robust certification process. The objective behind the care and diligence exercised is to present the customer with a car in good condition.

Mahindra First Choice also offers 24x7 Road Side Assistance and warranty on certified pre-owned cars. The warranty, subject to specific terms and conditions, covers the important parts of the car. The 24x7 Road Side Assistance, subject to specific terms and conditions, assures the certified pre-owned car buyer that should the car break-down, he will be provided assistance. This warranty and road side assistance gives tremendous peace of mind to buyers of Certified Pre-Owned Cars. Mahindra First Choice also has retail finance relationships with major banks and NBFCs in the country. As an industry first, Mahindra First Choice has recently partnered with Syndicate Bank to offer consumers finance rates comparable to those for new cars. Mahindra First Choice also has a website – Used Cars in India | Second Hand Car | Cars for Sale | Buy Pre Owned/2nd Hand Cars – which offers consumers the luxury of buying and selling pre-owned cars from the comfort of their own homes.

 

[visran]

Mahindra First Choice Services Ltd (MFCSL), a multi-brand car workshop firm, plans to open 350 outlets across the country with an investment of Rs 250 crore, a top company executive said today.

Addressing media persons after inaugurating MFCSL's second workshop here, Rajeev Dubey, President (Group HR & Corporate Services), MFCSL, said there is a need to provide services like maintenance, sales and insurance from one place to help car customers in saving time and money.

He said the car service market is worth Rs 20,000 crore and expected to grow at a healthy pace.

Dubey said the company, which currently has over 150 outlits, plans to come out with an IPO by 2015 to fund its expansion.

MFCSL, a wholly-owned subsidiary of Mahindra & Mahindra, is a chain of multi brand car workshops across major cities like Mumbai, Chennai, Delhi, Hyderabad and Jaipur.

Mahindra First Choice to open 350 outlets across the country: Executive - The Economic Times

 

[visran]

Mahindra First Choice Wheels crosses 200 dealerships

Multi-brand certified used car company Mahindra First Choice Wheels Ltd (MFCWL) has announced that it reached a new milestone with its pan-India network comprising 200 outlets.

“Several years ago we took a conscious decision of setting up an independent multi-brand company, rather than linking our foray into the used car business to the OE business. This conviction in the business model has resulted in the company today achieving a significant milestone of 200 outlets,” said Anand Mahindra, chairman and managing director, Mahindra Group.

“This is an important day for Mahindra First Choice Wheels. We have reached 200 outlets and are well on our way to achieving the target of 500 outlets by FY15. Since inception, MFCWL has worked with the basic belief that a second-hand car buyer is not a second class buyer. We have designed our outlets, systems and processes keeping this basic customer truth in mind. We have grown at a CAGR of 40 percent over the last five years and even in the current year when the growth rate for new passenger vehicles is at 6 percent, we have grown by 30 percent,” said Rajeev Dubey, president (Group HR, Corporate Services & Aftermarket) & member of the Group Executive Board, Mahindra & Mahindra Ltd.

MFCWL ensures each used car meets a high level of quality. A trained engineer thoroughly inspects the vehicle and also sees to it that all papers are in order. After purchase, the car is refurbished and undergoes an extensive 118-point quality check.

To drive the used car business and offer peace of mind to the buyer, the company has recently launched two new warranty products called WarrantyFirst and CertiFirst. Subject to specific terms and conditions, WarrantyFirst provides warranty for the major mechanical and electrical components which are covered for a period of 12 months or 15,000km, whichever is earlier. The CertiFirst warranty covers the car’s engine and transmission for a period of 6 months or 7,500km, whichever is earlier. Both warranties comes with the 24x7 Roadside Assistance facility across the country.

Autocar Professional

 

[visran]

Mahindra First Choice Wheels sells 1 lakh vehicles through its ‘Autobid’ auction platform

Mahindra First Choice Wheels Ltd. (MFCWL), today announced that it has sold one lakh vehicles through its ‘Autobid’ auction platform (formerly called eDiig). The platform has conducted nearly 7,500 auctions with over 6,500 buyers across nearly 900 locations, making it the leading used vehicle b2b platform in India.

According to Nagendra Palle, CEO, Mahindra First Choice Wheels Ltd., “Autobid is a world class auction platform that allows for immense flexibility in auction formats which provides excellent liquidity for sellers and buyers, producing the best vehicle values for either customer, with a high conversion rate. The one lakh actual transactions represent the number of vehicles sold through the platform and this scale is testament to the efficacy of the platform and the efficiency of our team. Our intent is to continue to invest in this platform to broaden its reach within India’s used vehicle industry.”

He added, “Our platform offers complete transparency and end-to-end analytics to our corporate and dealer customers and I am confident that it will continue to grow rapidly in the coming years. The success of the auction platform illustrates the growing need for and adoption of the ‘bricks and clicks’ hybrid model by the used vehicle industry. We are looking forward to playing a key role in expanding this model over the next few years.”

According to B Ganeshkumar, Head of e-business at MFCWL and one of the original founders of eDiig, “It is a proud moment for us to see the transaction numbers rise. We are continuing to innovate with our products and processes to bring the best value to our customers.”

The company is working on launching a series of products and value added services to support the used vehicle market. It has recently launched two value added services – ‘AutoInspekt’, its vehicle evaluation service, and ‘IBB’, which provides pricing guidance for buyers and sellers, both of which are unique, industry first features.

As part of the eCommerce platform offering, dealers can look forward to new products such as certification, warranty, insurance and financing in the future. The company is focused on building an ecosystem for the dealers with the objective of supporting them in generating traffic to the dealership, sourcing inventory and utilizing technology in order to enable a transparent retail transaction that the consumer can trust.

Mahindra First Choice Wheels Autobid auction

 

[Ankx]

My larger question is that how will each Used Car Seller (even if he is a subsidary of a OEM manufacturer) will differentiate his service vis a vis competition

I mean its good to see that this USED CAR market is getting Organised by the day in India but really needs much more consoldiation and services differentiation

 

[AMG]

There is no way Mahindra is achieving that sales target without a half decent hatch.