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Cox Automotive picks up strategic stake in MFCWL

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Press Trust of India New Delhi
Last Updated : Nov 24 2015 | 7:13 PM IST
US-based Cox Automotive has picked up a 'significant strategic' stake in Mahindra group multi- brand certified used car firm Mahindra First Choice Wheels for an undisclosed sum.
Commenting on the development, Mahindra Group Chairman Anand Mahindra said: "We founded MFCWL as a startup with a vision to revolutionise the way pre-owned cars are bought and sold in India. This strategic investment by Cox Automotive reflects the strong progress made by us over the last few years."
Cox Automotive bought shares held by HDFC and Phi Capital in Mahindra First Choice Wheels Ltd (MFCWL).
HDFC has sold its entire 4 per cent stake. Phi Capital, an early investor in MFCWL held around 30 per cent stake in the company but it cannot be ascertained how much stake it has sold to Cox Automotive.
Cox Automotive Chief Corporate Development Officer Joe Luppino said the company's investment in MFCWL furthers its strategic plans to create and grow used vehicle marketplaces.
"This opportunity allows us to partner with a company that has a reputation for delivering high-quality used car products and services to dealers and consumers in the fast-growing Indian automotive market," Luppino added.

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Cox Automotive is a global leader providing digital marketing, classifieds, software, wholesale and eCommerce solutions to dealers, consumers, manufacturers and financial institutions. Its brands include Manheim, Autotrader, Kelley Blue Book, Dealertrack, vAuto and Xtime.
MFCWL is a pre-owned car retail and wholesale services provider. Its brands include Mahindra First Choice Wheels, Indian Blue Book, eDiig, and Autoinspekt.
The company has over 650 franchise outlets in 300 towns across India.

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First Published: Nov 24 2015 | 7:13 PM IST

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