Mahindra First Choice launches 2 outlets in Hyd

Mahindra First Choice Wheels Limited, a multibrand pre-used car dealer plans to open its superstore, a large format store that can house over 100 cars, in a couple of months in Hyderabad. The company on Wednesday opened two outlets here.

Speaking to the media, chief executive officer Shubhabrata Saha said the pre-used car market in city was about 6,000 units a month, almost the same as sales of new cars. B and C segments (Rs 3.5 lakh or so) were the main contributors to the business.

However, the contribution from 'D' or the luxury car segment (upwards of Rs 5.5 lakh) was increasing due to customers' preference to upgrade to a sedan.

 

He said the company was in talks with major car dealers to procure used cars. It would also source the cars from corporate and individuals directly.

The cars would be valued on various parameters and refurbished by spending Rs 3,000 to 15,000 before certifying it and putting it on sale, he said, adding the company would get about eight per cent operating profit.

The second hand car market is India is currently estimated to be around 1.7 million units. About 90 per cent of it is in the unorganised sector.

The company has 114 dealerships, including six company-owned outlets, and would add six more in a month.