Mahindra First Choice Wheels in a conference declared that it presently has a network of 1,400 dealers across 700 towns. And now the company projects to expand its network to 2,000 dealers by the year end and by 2020 it aims to achieve the mark 4000–5000 dealers.
While sharing his opinion, MD & CEO of Mahindra First Choice Wheels Dr. Nagendra Palle, said, “While these restructuring have no doubt disordered the status quo, they have demanded all stakeholders transform within the desired period and get more organized. Despite the short term hiccups, we sturdily think that these changes in the market are excellent for the well-structured industry in the long term.”
He also stated that despite the certain problems that the Indian auto industry has faced such as Demonetization, BSIV transition, GST) the company managed to spur the growth figures by 40% from January 2017. With this, he also strongly affirmed that the used car segment in the country has endless growth opportunities.
As per the report, the total used-car market size is 3.6 Million, which was 9% greater than 2016, which was also expected to accomplish the figure of 15% of growth. Demonetization activity can be held responsible for missing figure of 3.8 Million vehicles. The other impact witnessed in the overall used car dealership network is the flat growth, whereas the well-managed sector remained to spur by 23% Year-over-Year.
The drastic shift from unorganized to organized market has been seen for used car sector, and this change is owing to consumer’s preference of purchasing a vehicle that delivers some assurance. The sales among the metro and non-metros remained stable at 45% and 55%, respectively.
The company is also planning to implement new strategies and with a novel business model, and soon will start with the pilot in cities such as Chennai and Bangalore.
Looking hopefully towards the growth of the used-car segment, MFCW is presently about to add more 50 new dealers in its network. The company claims that dealers associated with MFCW have best inventory turnaround time of 23 Days, which is most excellent compared to the 40 days. If compared to the international market in terms of turnaround time, it is 60 Days in the United States.
Recounting the customer profile of used car, he said, “60% of the potential customers are first-time buyers of cars, while the rest ones are among those who are looking to upgrade to a second small car or bigger vehicles.