Mahindra First Choice Wheels Limited (MFCWL) has opened the largest showroom for pre-owned vehicles in the country at the Wazirpur Industrial Area in New Delhi. The leading multi-brand used car products and services entity of the Mahindra Group will be retailing commercial vehicles, passenger cars and premium two-wheelers from this showroom which is a first in the industry. The new showroom encompasses close to 7,000 sq. ft. and spreads over three storeys. All products retailed from this showroom will be offering the Mahindra First Choice Wheels warranty and certification.
The company’s pre-owned vehicle lineup in India now includes passenger cars, electric vehicles, utility vehicles, commercial vehicles and high end two wheelers with this new addition. According to the Group President- HR and Corporate Services & CEO- AfterMarket, Mahindra Group, Rajeev Dubey, MFCWL has established itself as a market leader when it comes to multi-brand used cars. The company has undertaken extensive market research which has shown that the brand has significant possibilities in other consumer vehicle categories like two wheelers and electric vehicles where buyers seek a trusted brand name behind their transactions.
The industry in FY17 has been estimated at 3.3 million. MFCWL has expanded its potential market and portfolio hugely by foraying into commercial vehicles (annual market size approximately 1 million annually) and two wheelers (annual market size approximately 12 million). According to the CEO & Managing Director at Mahindra First Choice Wheels, Dr Nagendra Palle, the goal is to set up and link the used vehicle ecosystem with a trusted and powerful brand backed by technology-driven services, products and operations that help in organizing an industry which is majorly unorganized.
Mahindra First Choice Wheels Limited now has warranty and certification products specifically tailored for every vehicle category. For two-wheelers, the company is presently focusing on the 250 cc and above category or the premium segment. The two-wheeler franchise business will also be taken to other cities soon. The Delhi showroom has been set up in partnership with the Indraprastha Group. MFCWL has a novel business model with a major online presence and showroom experiences alike. 60% of the company’s customers are first time buyers of vehicles.
Two more two wheeler outlets are expected in Mumbai and Bangalore soon and the price range of motorcycles offered to customers will be between INR 1-7 lakhs according to Dr Palle. He also talked about there being 52 checkpoints for two wheelers and 118 checkpoints for four wheelers. MFCWL currently has over 1, 255 outlets in close to 700 towns across India and is targeting the opening of 50 more outlets in the near future. It has 37 outlets in the NCR alone and extended its market leadership in the used car industry in FY17 with growth in revenues to the tune of 80% while the technology led business witnessed the growth of 200% on a year-over-year basis.