Guwahati, Feb. 21: Used-car retailer Mahindra First Choice Wheels has expanded its footprints in the Northeast with the launch of two more outlets in Assam, taking its tally of dealerships in the region to 13 in just over a year’s time.
The company today opened a dealership at Silchar after launching one at Dibrugarh on Wednesday.
“We plan to increase our footprints in the smaller cities and towns as there is a good market for used cars and the Northeast is no exception. As a matter of fact, we are eyeing at least 26 outlets in the region by the end of the 2014-15 fiscal,” Yatin Chadha, senior vice president (retail business), Mahindra First Choice Wheels Ltd told The Telegraph today.
Mahindra First Choice has, since its inception in 2007, established itself as the leading multi-brand certified used-car company with a network of 335 franchise outlets spread across 190 locations in the country.
“We expect to have 350 outlets in the country by March. This includes two more outlets in the Northeast, one in Guwahati, which will be the city’s fourth, and the other at either Jorhat or Lakhimpur,” Chadha said.
In India, the company sells 5,000 cars per month. “We are on course of meeting our yearly target of selling 60,000 cars by March, which would be a year-on-year growth of 37 per cent. In the Northeast, we sell between 2,000 and 2,500 cars per month,” he said.
The size of the used-car market in the country is pegged at three million units, with the organised sector’s share at 15 per cent.
According to company sources, the used-car market is expected to be almost double the size of the new-car market in the next five years.
“The slowdown in the industry has not affected the used-car market. The fact that ownership lifecycles have come down from five to eight years earlier to three to four years now augurs well for the trade,” the official said.
Asked why Mahindra First Choice scores over the other pre-used car sellers, Chadha said, “We offer all kinds of brands and hence cater to the all kinds of buyers. More importantly, the company offers the entire range of products and services, including purchase and sale of multi-brand certified used cars with warranty, finance, insurance, accessories and assistance with paperwork and documentation.”