Wednesday, May 4, 2016

Mahindra First Choice Wheels at 735 India Outlets; Plans to Double Network in FY17

Having grown its network at a rapid pace of nearly 50% a year, over the last 5 years, Mahindra First Choice Wheels Ltd (MFCWL) plans to double its network over the next 12 months to 1500 outlets. The plans for the year were conveyed during the inauguration of its 735th dealership in the country here in Bangalore today.

The new outlet, Car Bazaar, is spread across 8000 sq. ft and is located at Kamanahalli Circle, Kalyan Nagar, Outer Ring Road, Bangalore-13. It was inaugurated by Rajeev Dubey, Group President (HR & Corporate Services) and CEO (After-Market Sector), Member of the Group Executive Board, Mahindra & Mahindra Ltd. in the presence of Nagendra Palle (MD and CEO – MFCWL) and Tarun Nagar (VP-Retail, MFCWL).

“Mahindra First Choice Wheels continues its endeavour of building a brick & click model for the used car industry. With 735 franchisee outlets, we lead the multi-brand used vehicle space. Last year we also auctioned used vehicles online from over 1,000 different locations making us the largest online wholesale network in the country. We believe this comprehensive approach of using our physical network in conjunction with our online channels will help us build a long term sustainable business while organizing a largely unorganized used vehicle industry in India,” said Dubey at the inauguration.

“We are delighted to expand our rapidly growing network in Karnataka with the inauguration of this new dealership in Kalyan Nagar. South India is a strategic market for Mahindra First Choice Wheels and we look forward to creating value for all our stakeholders across the value chain through innovative and industry-first products and services. Our strong franchisee network will play an important role in helping us to fulfill this goal,” said Nagi Palle at the inauguration.

“The Mahindra First Choice customer value proposition at its physical outlets is built around quality of the multi-brand vehicles being retailed and a refreshing customer experience offered to customers in the used car space. The company is now creating newer formats to reach the hinterland” said Tarun Nagar, Vice President-Retail business, MFCWL

“In the two decades since India’s economy was liberalised, perhaps no other industry has seen as many tectonic shifts as the automotive industry. From just two models in the early 90’s there are several hundred makes and brands available today, all competing for the attention and hard earned rupee of the Indian car buyer. However, like most things, buyers’ aspirations are higher than their purchasing power, which is where used vehicles come into the picture. They make eminent sense as they help bridge the gap between rising aspirations and limited spending power, allowing a buyer to potentially get a bigger, better equipped used car for the same price as perhaps a smaller new car. Used cars provide every consumer segment with choices. They enable consumers to either upgrade brands (mass market to luxury) or allow a family to purchase their FIRST car which is for most, ‘a dream come true” said Santhosh and Poornesh,Directors,  Car Bazaar.

From its humble beginnings in 2007 when its first franchisee outlet was established, MFCWL embarked on a strategy of building the used vehicle eco system in the country by connecting the retail and wholesale side of the business through investments made in the creation of it’s physical and online assets. The products and services extended through its “On the ground” and “In the cloud” hybrid business model powered more than half a million used vehicle transactions in F-16.

The company is the pioneer or leader in most aspects of the used vehicle eco system. Some of its lines of business include:  
    • Mahindra First Choice franchisee network, the largest multibrand certified used car company in India
    • Ediig is the largest online vehicle auctioneer in the country connecting institutions to used vehicle dealers and brokers
    • Autoinspekt is India’s first organised third party inspection service catering to the needs of various stakeholders in the used vehicle space
    • Indian Blue Book is the only analytical platform in the Indian industry today for vehicle price leveraging the largest multi-brand transaction database in the country. The high fidelity analytics serves pricing needs for various stakeholders like Auto OEM’s, financial institutions, dealers and consumers
The company’s unique business model has received a thumbs up from external investors. In the last 12 months the company raised funding from Silicon Valley based Hedge Fund, Valiant Capital and Cox Automotive a $17 Billion US based enterprise providing digital marketing, classifieds, software, wholesale and eCommerce solutions to dealers, consumers, manufacturers and financial institutions. Its brands include Manheim, Autotrader, Kelley Blue Book, Dealertrack, vAuto, Xtime.

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