Mahindra First Choice used car business set for growth in FY15
Mahindra First Choice Wheels Limited (MFCWL) has announced aggressive expansion plans for its used vehicle business in the country during FY 15. Set to grow 25-30 percent during the year, the company aims to sell 1.4 lakh vehicles as against 1.1 lakh vehicles sold during the last financial year and close the year with 500 outlets with sales which are conducted both online and offline.
Noting rising consumer confidence in demand for used cars in the country, it is estimated that the second hand car business is at least three times that of the new car business. Mahindra First Choice recently inaugurated its 400th outlet in Dwarka in Delhi NCR in December 2014 and 401st authorized dealership in Kolkata early this year.
Mahindra used car business plans to increase 500 outlets in FY15 and estimated that this will go upto 650-700 in FY16. Each service outlet is provided with support infrastructure that includes a spare part warehouse, training offered to franchisees and technicians.
Multi-brand used cars are offered with sound comprehensive warranty policies while MFCWL has also added Highline stores for selling high end multi brand used cars. The higher margin of 8-10 percent in used cars as against the 4-5 percent where sales of new cars are concerned is what is driving this new enterprise in the country.