November 7, 2013: Mahindra First Choice Wheels opened its 300th outlet last week in Mumbai at a function attended by the franchisee owners, Automaxx, as well as Dr Rajeev Dubey, Group head of HR, Corporate Services and Aftermarket, Mahindra & Mahindra. The outlet will, like all MFCW outlets, sell both Mahindra and other OE vehicle brands.

Speaking to Autocar Professional, Shiv Kiran V, head (marketing), said that the company hopes to open 350 outlets by the end of the current calendar. The company also hopes to sell about 65,000 cars in the pre-owned car space and with the recently started e-auction, the company hopes to sell over a 100,000 vehicles, Dr Dubey said.

“Automaxx was among the first franchisees appointed in 2007. It’s great that as we are expanding, our franchisees are also getting ample opportunities to grow with the company and are investing in multiple franchisee outlets, says Yatin Chadha, senior VP – retail business, MFCW.

Every vehicle that MFCW accepts is put through a 118-point check. The company will open new outlets in different parts of the country, Kiran said. The most important market is North India with 100 outlets followed by West India.

The scope for organised retailing cars in the used car space is huge given that it accounts for 18-20 percent of the market. The Mulund, Thane outlet, is the second by the same franchisee.

The used car market is witnessing a boom as people delay purchases of new vehicles thanks to higher interest rates and the impact of the economic slowdown. MFCW sources say that customers are considering used cars given that the value they offer, price-wise, is much better than perhaps a new car.