From its humble beginning in 2007, Mahindra First Choice Wheels Ltd. (MFCWL), the multi-brand used car division of Mahindra & Mahindra, has today achieved a dominant status in car retailing in the country. Driven by its mission to transform the way used cars are retailed, it has pioneered several customer-friendly innovations.
Discussing the factors behind its growth and expansion in a casual chat with MOTORINDIA, Dr. Nagendra Palle, Chief Executive Officer, Mahindra First Choice Wheels Ltd., spoke about the extremely unorganised nature of the used car industry and the high degree of trust deficit in the market. The company aim has always been to set right the extremely unorganised nature of the used car industry, both on the retail and wholesale fronts. In developed countries, the regulatory framework and the law enforcement system are very well established unlike in India where it is still a nascent market bt evolving rapidly.
He explained the reasons for the consumer trust deficit and how the company addresses them. The first one related to the condition of the car and its functioning. The others are the cumbersome paperwork, the customer apprehension about the price paid for the vehicle and the authenticity of the seller. Throughout the company has made every effort to make the transaction pleasurable for the consumer.
Besides, he said, the company remains innovative throughout to enhance the used car retail experience, empowering the consumer with adequate information, products and services that enable a safe and confident transaction. The innovations include developing a unique franchisee-based business model (www.mahindrafirstchoice.com), selling certified multi-brand used cars under warranty and offering the most comprehensive warranty available on used cars in the country.
Mr. Palle further disclosed that a series of product introductions highlight these innovations, such as CertiFirst, WarrantyFirst, Indian Blue Book (www.indianbluebook.com) and Autoinspekt (www.autoinspekt.com). These products specifically enable the consumer to obtain the best pricing and vehicle condition information, while guaranteeing the value for the money paid. Through its ‘eDiig’ auction platform, the company has sold more than 1.5 lakh vehicles till date.
In fiscal F14, therefore, the company transacted nearly 120,000 vehicles between wholesale and retail.
Largest dealer network
MFCWL has the largest network of multi-brand used car dealers in India. As of August end, it has 380 outlets across the country. There are plans now to increase the number of outlets to 500 within the next 12-18 months in metros, Tier-2 towns and cities. The company is now growing at a healthy pace of 40 per cent year-on-year.
“We are present in 210 cities across India. NCR is a big region, and almost 38 dealers out of 380 are from this region. We are pretty strong in the eastern parts of the country also, and now plan to add more products and services in our stores”, added Mr. Palle.
The company’s online platform (eDiig) supports disposal of vehicles by institutional sellers. In the last fiscal, it recorded a sale of 65,000 vehicles only through its online portal, of which 40 per cent was from the commercial vehicle segment.
MFCWL has its retail finance relationships with major banks and finance institutions like HDFC, Mahindra Finance, TVS Credit Services, Kotak Mahindra and ICICI Bank for helping consumers buy their dream cars through loans.
Mahindra First Choice Wheels is committed to bring to bear an unprecedent level of transparency and trust in the used car transaction – be it B2C, B2B or C2C. Its uniquely positioned through its hybrid model wherein it can “capture the requirement online, deliver offline” with a slew of products & services that are technology and brand enabled.