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Mahindra First Choice Wheels Services (MFCWL), a multi-brand car workshop company, is planning to open over 150 outlets taking the total up to 500 workshops in the next two years. The company has opened three new dealerships in Pune today.
“Our vision is to create India’s dominant used car ecosystem by bridging retail and wholesale channels while leveraging physical and online infrastructure. We have registered a growth of 35 per cent in last financial year. As indicated by the results, we have building blocks largely in place and our plan is to rapidly deploy our people and technology to drive the growth agenda. With increasing number of cars, people are looking for quality servicing for their cars,” said Nagendra Palle, CEO, Mahindra First Choice Wheels.
The pre-owned car market which is of over three million units is still dominated by the unorganised sector. At present, Mahindra has 351 outlets in 208 cities across India. Between its retail, wholesale and inspection services, the MFCWL enterprise participated in 1,50,000 used vehicle transactions.
“The business of pre-owned is growing rapidly at the rate of 30 per cent and OEM owned multi brand outlets contribute over 15 per cent. Also, the holding time for new car has came down but second hand car market is still dominated by customer to customer selling,” said Palle.
Mahindra First Choise has sold over 56,000 vehicles in last one year and around 55,000 units via online, said the company.
A typical investment for one service station is around Rs 30 lakh and break even time is around one year. The bay size of each station varies from 8 to 15 bays. Currently, the service stations receive 100,000 repair orders and expected to grow up to 300,000 in the next one year.
Mahindra secures third position in the pre-owned car market after Maruti Suzuki and Tata Motors, however Mahindra is a multi brand player in this sector.
The size of the used car market in Pune is 3500 cars per month, while in the state it is 28000 cars. With the inauguration of these new dealerships, our network strength now stands at 9 outlets in Pune and 54 outlets in Maharashtra.
