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Mahindra First Choice Wheels, the multi-brand used-car company, is eyeing 10 per cent market share in Uttar Pradesh by the end of current fiscal.
The used-car market in UP is estimated at roughly 13,000 units a month. The Lucknow market alone is pegged at around 2,500 units a month. The company, which already has 16 dealers in the state, will open another 10 in the next one year.
It launched its maiden dealership in Lucknow today and plans to open another soon, company’s zonal head (north) Harminder Singh Rangar told Business Standard.
“Our plan is to initially capture 10 per cent market share in Lucknow and gradually touch such volume across UP as well,” he added.
All over India, the company has 255 dealerships across 162 cities, which it plans to ramp up to 500 in the next three years. “We aim to cover all class-A and -B cities, besides expanding our footprint to 80 per cent of the class-C cities.”
He said the used-car market was estimated at 1.3 times the new-car market.
“Almost 60 per cent of the used car transactions are done privately between individuals, while about 28 per cent of the segment is handled by local brokers in the unorganised sector,” he said.
The organised players handle about 12 per cent of the used-car segment, and their composite volume could be anywhere from 1 lakh to 1.25 lakh units a month. Maruti dominates the market with its True Value controlling over 50 per cent share.
Other organised players in the pre-owned car segment include Tata Motors Assured, Carnation, Mahindra First Choice, Hyundai Advantage and Honda Terrace.
