Mahindra & Mahindra owned used-car business Mahindra First Choice is planning to expand operations by capitalizing on the increasing demand for used cars in India. The company targets an annual sales figure of 1,00,000 units sales by the year 2015.
The used-car business is in the process of expanding its operations in India and has opened its 300th outlet in Mulund. It plans to further add 200 outlets to that number by 2015. Based on the expansion of its dealership network, First Choice expects to touch 1,00,000 units sales annually by the year 2015. It’s sales for the year 2012-13 stood at 46,000 units and expects sales of 65,000 units in the current year 2013-14.
The used car market in India has grown larger than the new car market owing to market conditions and factors such inflation, depreciation of Indian rupee and high interest rates contributing to dampen buyer sentiments towards new purchases. It is expected that by 2018, the used car market will grow to double the size of the new car market.
While the unorganized segment in the used car market accounts for 82 percent share, the organized sector makes 18 percent of the total market. The share of organized sector has been growing steadily with new and larger auto players entering the market such as Mahindra’s First Choice and Maruti’s True Value.