Used car retailer, Mahindra First Choice Wheels Ltd. (MFCWL), is planning to launch a virtual marketplace for used cars in January next year. Initially, registered dealers will participate in the sale and purchase of used vehicles, and later on it would be extended to end consumers.
Speaking to Business Standard, Rajeev Dubey, president, HR, after-market & corporate services, Mahindra & Mahindra Ltd, and member of the group executive board, said, “The Virtual marketplace for used cars is likely to be operational by January next year. Initially, it would be a D2D affair in which registered dealer with First Choice will participate. Later on, we will extend it to end consumers. We will work on the ‘clicks and mortar’ model, and have plans to become India’s largest virtual platform for used cars.”
“This would enable us to sell our products on the web and the existing locations will facilitate physical transaction of vehicles. With these initiatives we aim to organise this highly unorganised used-car segment,” he added.
MFCWL is the country’s preferred used car mart and has 214 outlets in 115 cities across India. The company plans to expand this number to 500 outlets in the next three years. “This implies that customers will soon be able to choose from a range of certified used cars throughout India, including the metros and tier-II towns and cities,” Dubey said.
“Last year we sold 34,000 units and we are aiming to sell 46,000 cars by the end of this fiscal, and register a growth of around 35 per cent over the last fiscal. By 2015, we target to sell 1,00,000 cars across India, he said.
Commenting on the domination of unorganised players in the used-car market, Dubey said, “The trend is changing, as more and more players come into the organised used-car market. Currently, the size of the Indian pre-owned car market is estimated at 1.2 times of the total new cars to be sold in India in 2012-13 which is estimated to be around 2.8 million. In India, a majority of the transactions in the used-car market happen through customer to customer, followed by neighbourhood car brokers, and the rest is done by organised players.
The organised sector is growing at a fast rate of over 22 per cent year-on-year with increase in awareness. We aim to grow at 35-40 per cent, which is more than the industry average.”