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Mahindra First Choice in talks with car makers

 

M&M president (human resource, after-market and corporate services) Rajeev Dubey said the company was in talks with Tata Motors, General Motor, Volkswagen, Skoda and Ford among others.

“We are planning to use their dealership base to procure used cars. This will be a win to win situation for both. For us the procurement problem would be addressed and for the dealers, they can run their exchange programme successfully,” he added.

The second hand car market is currently estimated to be around 1.6 million units. In countries like the US, France and Germany this is 2.6 times bigger than the new car market. “India is also heading in the same direction,” said Shubhabrata Saha, chief executive officer, Mahindra First Choice Wheels Ltd.

Stating that 90 per cent of the used car market in India was under the unorganised sector, he said with more organised players coming into the market, brokers’ share would come down. At present, customer-to-customer share is 60 per cent while brokers account for 30 per cent.

The company is looking at expanding its dealership from the current 114 to 220 by the end of this fiscal and to 300 by next year. It registered a turnover of Rs 220 crore last fiscal and expects to close the current fiscal with around Rs 400 crore.