In the current slowdown of domestic auto market, second hand cars are still being largely sold in the country. It is anticipated that used car market will be doubling its figures in the coming 5 years. In such a condition, Mahindra First Choice Wheels Limited (MFCWL) has come up with a proposition to sell 60,000 used cars this fiscal and gradually increase its growth by 30 per cent as against the last year. Mahindra First Choice is considered a pioneer company, which is certified in used car sales and had earlier planned to extend its dealerships across the country. Company's aim to inflate its sales is a part of expansion scheme and industry experts are of a view that it will strive hard to utilise the opportunity fully.
Used cars have a heavy demand in India, which is generally dominated by prospective buyers who tend to leap into 4-wheelers from their 2-wheelers. Growing urbanisation and changing lifestyle also contribute to second hand cars being sold on a big platform. Industry experts unanimously agree that economic growth of the nation is staggering and at such a point, consumers want to shed bucks cautiously. Dr. Nagendra Palle, Chief Executive Officer, Mahindra First Choice also reported that in comparison with new cars, used automobiles have become primary option for budget oriented buyers and this trend is being followed in every state of the country. Reports suggest that the ratio of new cars to used cars in America is 3:1 whereas, in India it is reduced to 1.2:1, which seems like a poor figure.
It must be noted that used car market stands at an estimated size of over 3 million units and is continually growing everyday. The introduction of authorised used car sellers such as Maruti Suzuki True Value and Toyota U-Trust have made consumers more tempted with their lucrative schemes. Buyers tend to go to such companies to own used cars as they offer a variety of packages to be availed with every purchase, similar to ones being provided during the purchase of a new car. Also, these companies have a reliable and trustworthy brand image in domestic auto market, which in turn proves to be beneficial for their sales. Sources speculate that out of the 3 million used cars, 15 per cent of share is contributed by these authorised companies and rest by local dealers.
Mahindra First Choice happens to be the dominant player in this organised sector and records greater sales than the abovementioned companies. It recently opened its 19th dealership in Kerala and overall 66th outlet in South India. The company aims at extending the outlets to 25 in the state by this fiscal. With exclusive innovations of Autoinspekt, CertiFirst, Indian Blue Book and WarrantyFirst, the company is eventually stabilising its presence in the respective segment of the auto market. With a plan to have 500 outlets in India by the next 3 years, Mahindra First Choice is putting in great efforts to achieve new feats. It will be interesting to see what fortune the coming future brings for the company.
