Mahindraâ€™s multi-brand certified used car company is definitely leaving its mark in the rapidly growing used car market.
Online PR News – 29-December-2014 – Mumbai – With over 400+ outlets across 220+ cities in India, Mahindraâ€™s multi-brand certified used car company is definitely leaving its mark in the rapidly growing used car market. In the last fiscal year, Mahindra First Choice has booked a turnover of INR30cr. This year the company is targeting at INR75cr, which is more than double of last yearâ€™s revenue. The company is striving hard to accomplish its ambitious target of 1,000cr by 2015. And at the pace in which it is moving ahead this does not seem to be an unachievable mission.
Mahindra First Choice is not limiting itself to just the buying and sales of used cars, but it is also taping the after sales and passenger service market. In India, this segment of the industry is estimated to be INR15, 000cr. Out of which a large chuck is commanded by the dealer outlets and for multi players the market opportunity is 5,000cr.
In November, Mahindra First Choice inaugurated their first FOFO (Franchisee Owned Franchisee Operated) workshop in Kurnool, Andhra Pradesh. YVS Vijay Kumar, Chief Executive Officer of Mahindra First Choice Services, said, â€śWe see great potential for the multi-brand car servicing market in the country. This has prompted us to further strengthen our presence. Our business model for franchisees has received a strong response.â€ť
This leading certified used car company is targeting to open 100 plus Franchisee Owned Franchisee Operated workshops by the end of this financial year. In the initial stage, the company will be focusing on the states of Telagana and Andhra Pradesh because of the promising potential of the region.
The business model of Mahindra First Choice Services is simple and is backed by a robust spare parts supply chain. There is a cluster warehouse strategically located to feed all the workshops. The company plans to set up about 500-600 warehouses for about 500 franchisees by 2018. Their aim is to make available a warehouse within 4-5hrs of the radius of the workshop to facilitate easy supply of spare parts and increase the bar of customer service in the industry.
Another factor that is attracting investors for franchisee is the lower cost of the outlets. When compared to the traditional market, Mahindra First Choice Services cost about 15-20% less. The investment involved in a franchisee is about INR60 lakhs to INR1 crore. The credit for the lower cost goes to their spare part sourcing strategy. The company gets the spare parts directly from the manufacturers, which in turn benefits them both economically and also in delivering prompt customer service.