Mahindra First Choice Services opens 4 workshops in NCR; targets 450 outlets by 2018

New Delhi, December 20, 2013: Mahindra First Choice Services (MFCS) is driving a new paradigm in the used car business. The multi-brand car workshop company has launched an annual maintenance contract (AMC) with triple benefits of annual maintenance services, roadside assistance and a warranty which, at an MFCS outlet. While the basic AMC will be available for a Rs 6,000 for a 3- to 4-year-old Maruti Swift and Ertiga, the top-end AMC with multiple features is priced at Rs 10,499. Similarly, a 3- to 4-year-old Hyundai i10 model will have an AMC ranging between Rs 5,499-9,999, while a Mahindra XUV500 will attract an AMC charge of Rs 9,499-16,000.

In addition, MFCS has also introduced a car dent estimator for getting an instant estimate of car damage with a specially designed interface for smartphones and other devices.

MFCS has also opened 4 workshops in the NCR at Greater Noida, Faridabad and Greater Noida. According to Rajeev Dubey, president (Group HR, corporate services and aftermarket), Mahindra & Mahindra, this is in line with its expansion programme to increase the number of its outlets from the existing 25 company- owned-company-operated (COCO) workshops to 30 by the end of 2013-14, generating a topline of Rs 35 crore. Thereafter, the target is to take up its workshop count to 450 comprising mostly franchisees with 10,000 employees on board over the next 4-5 years by adding 100 workshops annually. The turnover target for 2014-15 is Rs 100 crore.

With only about 3 key players – Carnation Auto, MyTVS and CarZ – currently operating in the multi-brand service industry, MFCS sees a great growth potential for itself. YVS Vijay Kumar, CEO, says that the service industry today is worth Rs 12000 crore of which OE dealers account for Rs 6,000 crore and the balance is chipped in by local garages with a miniscule amount shared by multi-brand service outlets. Going forward, the potential of multi-brand services can constitutes around Rs 4,000 crore of which MFCS would contribute Rs 1,000 crore by 2018.

This estimate is based on the premise that in developed countries OE dealerships, multi-brand service outlets and local garages each chip in with a 33 percent share of the total service industry. Dubey says MFCS has not been impacted by the ongoing market slowdown, given that it is at present a small player. The company has so far invested Rs 100 crore on services, infrastructure and on training technicians and plans to invest another Rs 150 crore on an additional 15-20 upcoming COCOs as well as on training and support to franchisees in terms of equipment and processes.

MFCS outlets plan to focus mainly on servicing Maruti Suzuki, Hyundai, Tata Motors and Mahindra vehicles along with some models from GM India, Ford India and Toyota Kirloskar Motor. Dubey adds that they will look at servicing the premium segment later after MFCS has consolidated its gains.

The new 4 workshops, inaugurated today in the NCR, have a combined bay count of 70 and will increase MFCS’ servicing capacity by over 4,000. With this, MFCS outlets can now service 8,000 cars per month with skilled technicians, spare parts availability, equipment, a free pickup-and-drop facility and an online booking option.

MFCS has its own spare parts supplier chain with about 15 suppliers including the recent tie-up with Valeo. Next year, MFCS will also expand its outlets into the eastern part of the country while expanding rapidly across India.

SHOBHA MATHUR