Mahindra to expand its pre-owned car business

India's largest SUV manufacturer Mahindra & Mahindra Group is planning to expand its used car business in the country. Mahindra First Choice on Wheels  (MFCW), a Mahindra Group owned used car company is expecting to sell 18000 units of used cars this year compare to 10,255 last year. MFCW has a pan India network of 114 centers including 6 company owned outlets.

According to Mr Rajeev Dubey, president (HR and after-market services) and member of Mahindra Group Management Board, company registered a revenue of 200 crore last year from the sell of its pre-owned cars and it is expecting to received a revenue of 400 crore this year. Adding to this Mr Shubhabrata Saha, CEO of MFCW said that the sales of MFCW would double by next year and the company is expecting to hit sales figure of 1 lakh units by year 2015. He also added that company is going to launch a '2S'service soon so that its customers can get sales and service offerings at a single window.

In coming years MFCW is aiming to establish its brand power by using franchising mode and organizing itself by professional management. Where the 'D' segment (Rs 5.5 to Rs 6 lakh) cars accounts for 15% sales of MFCW, the B and C segment (Rs 3.5 lakh and above) cars accounts for around 30% sales of the company.