Mahindra First Choice is bullish on expanding its services network targeting 275 outlets and a turnover of Rs 200 crore in the next three to four years.
Rajeev Dubey, president, group HR, corporate services and after-market, Mahindra and Mahindra (M&M) said that Mahindra First Choice Wheels (MFCW) and Mahindra First Choice Services (MFCS) are two separate companies under the aftermarket sector of M&M. While First Choice Wheels is eyeing a 35 per cent growth this fiscal, targeting to sell 46,000 cars by March 2013, First Choice Services, which currently has a turnover of Rs 20 crore, is aiming to grow aggressively.
"We plan to take the outlet count under MFCS to 275 in three to four years time, and by then our revenues from the outfit would touch around Rs 200 crore. We are looking at having around 40-45 company-owned outlets under MFCS while the rest would be franchisee", Dubey elaborated. Company-owned outlets are critical for growth in the services segment as availability of spares is essential for sustainable growth.
The after-sales services market for cars in India is currently pegged at Rs 2000 crore roughly, of which organised players (mainly authorised service centers) have a 50 per cent share. Multi-brand service outlets are still at a nascent stage in India, but there is huge potential for growth, Dubey said.
"As cars get more sophisticated, the offerings of a roadside garage mechanic become outdated. Also once the warranty period is over, a customer seldom goes back to the authorised service center. This is where multi-brand service centers have an opportunity to grow", he explained.
