India’s leading automotive major and a diversified global multi-national, Mahindra & Mahindra has raised fund of Rs 80 crore in a move to promote FirstChoice Wheels (India’s largest chain of multi-brand pre-owned cars). The fund will provide financial aid to FirstChoice’s 300 owned and franchise outlets.
Mahindra’s new After–Market Sector which has been recently launched is trying to increase the market of its pre-owned car multi-brand stores all over India.
Mr. Rajeev Dubey, President After-market Sector, Mahindra and Mahindra, said, “Our vision is to corporatise the used car business, which is a revolutionary effort by the Mahindra Group. FirstChoice is at the entry of its next phase of growth. The combination of funds and a partner like Phi would help to transform the company into a truly pan – Indian player, helping us to consolidate our leadership in the multi-brand pre-owned car industry.”
Mr. Vinay Sanghi, CEO – FirstChoice Wheels, further added, “FirstChoice has gained the first mover advantage as the leading organised player in the pre-owned car market. With an excellent team and systems in place, we are aiming1,00,000 vehicle sales per annum by 2013. With this funding, we will increase our reach to over 300 outlets. This will include 30 Franchise Super Stores, each of which will have a stock of over 200 cars on display.”
Currently, the pre-owned car market stands at 1.5 million cars per year and is expected to grow exponentially in the coming years. The pre-owned car industry is likely to reach a size of 50,000 crore in next 5 years. The After-Market sector was introduced by Mahindra in April 2008 to capitalize on the business opportunity of selling pre-owned cars and to consequently provide spares and service support through this new sector.