The Indian second-hand car market is growing and Mahindra plans to cash in on this. The car maker is going to open 350 outlets of their multi-brand used car dealerships; Mahindra First Choice.
Mahindra will be investing Rs 250 crore in this project. There is a need to provide services like maintenance, sales and insurance from one place to help car customers save time and money, Rajeev Dubey, President (Group HR & Corporate Services), MFCSL was quoted as saying.
He also stated that the car service market is worth Rs 20,000 crore and is expected to grow at a healthy pace.
At present there are over 150 Mahindra First Choice outlets and the company plans to come out with an IPO by 2015 to fund its expansion. First Choice has tried to bring more order into the used car market, by allowing buyers to sift through various car options from multiple car brands under one roof, and get better, transparent deals.
Mahindra First Choice was earlier known as Automart India and among the first to enter the used car business in India. CarToq had earlier reported that the company plans to have 300 outlets with presence in 92 cities by the end of 2013. It seems that the project has been further upsized. Back in 2008 First Choice had 70 outlets in 40 cities.
Mahindra isn’t the only car maker to venture into the used car business. Ford has their own used car wing called “Ford Assured”. Even luxury car makers like Mercedes-Benz and BMW have launched their used car wings, although they are not multi brand like Mahindra First Choice. Mercedes Benz calls their used car wing “Proven Exclusivity” which was launched in June 2010. BMW India launched its used car business called ‘BMW Premium Selection’ around November 2011. Now what remains to be seen is how efficiently and successfully Mahindra can run their used car business. Would you buy a used car from Mahindra First Choice? Share your views in the comments section below.
(Source: Wheels Unplugged)