Hyundai Santro and Honda City lead sales of Mahindra First Choice Wheels multi-brand outlets

The Hyundai Santro and Honda City from the B and C segments lead the sales at the multi-brand outlets of Mahindra FirstChoice Wheels (MFCW). These outlets display a variety of car models unlike the exclusive OE brand pre-owned car outlets, ranging from a Nano to a BMW 5-series or an Audi A4.

Among the key parameters driving car sales are the quality of drive experience, resale value of the car, cabin space, engine power, safety of driver and passengers with car prices kicking off from Rs 1 lakh and going upwards to Rs 7 lakh for an entry level BMW, Mercedes-Benz or an Audi. However, luxury cars constitute just about three percent of total sales of an MFCW outlet. While a used Santro can be bought at Rs 1 to Rs 3 lakh depending on its age and mileage, a Honda City can be sourced at Rs 3.5 to 4 lakh compared to a new City that carries a price tag of Rs 7 lakh.

Interestingly like the new car market, there is a shift in customer demand from petrol to diesel cars at MFCW’s multi-brand outlets over the p six to eight months.

“Availability of diesel cars is very low as we are unable to source good cars due to the sudden shift in customer preferences. Those who possess diesel cars are not keen to part with them and prefer to drive them. New diesel technologies will take about three years to come into the market and that is when more diesel cars will be available at our outlets,” says Sharad Agarwal, national head --Franchisee Operations.

About 60 percent of the cars sold at the outlets range from three- to five-year-old models with 25 percent in the zero to three-year bracket with the balance in the above-five-year category out of the 25 to 30 cars on display at each outlet. Used cars are sourced through new car dealers, online network, through leasing and corporate tie-ups and walk-in exchange of cars. MFCW offers 95 percent financing facility to customers through its in-house finance arm, Mahindra Finance, and partnerships with financial institutions.

MFCW expects to sell 30,000 cars in FY’12 through 150 outlets primarily in Tier I and II towns with a sales target of a million cars and 300 outlets by 2014.

SHOBHA MATHUR