Rate at which demand for after-market spares is increasing, is unbelievable. Once the warranty of the car is over, most buyers don’t mind replacing faulty parts with cheaper spares available in the market, instead of going for the expensive spares from the original maker.
Seeing a demand here, Mahindra First Choice has launched tested and certified spares her car brands. Mahindra claims that their spares are not only cheaper, but also come with guarantee to meet required standards.
Mahindra First Choice Services, part of Mahindra Group after-market division has introduced MFC branded spares for fast moving auto parts. The scheme was launched a few months back and has already started showing rich rewards. The company expects share to rise from a current 10% to 30-40% over the next few years.
Mahindra First Choice branded spares are offered at one-third the price offered by an original equipment manufacturer. While during warranty period, car owners shy away from using spare parts other than those from the original equipment manufacturers, it is after this warranty period that car owners generally opt for different brand of spares which come not only with an assurance of authenticity but also at more affordable pricing.
In 2015-16, Mahindra First Choice which announced turnover at INR 60 crores, expects a significant rise to INR 100 crores during the current fiscal while targets are set at INR 1000 crores by 2020-21. The company has entered into agreements with 8 vendors for supply of spare parts while 23 distributors as on date are expected to reach 100 by the end of FY17.
Timely supply of spare parts is assured as the company retains a 30 day inventory of Mahindra First Choice branded spares which include wiper blades, brake pads, suspension parts and clutches besides all other fast moving spare parts. Mahindra First Choice has also introduced lubricant oil under the Proleum brand while expansion of networks by 300 new outlets is also on the cars from a current 160 outlets.