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Our Bureau

Pune, Oct 7 With the Mahindra First Choice, the multi-brand pre-owned car company, completing its first year, the second outlet has been opened in Pune. The company would have seven superstores by this fiscal end and 30 across the country by 2013.

Talking to presspersons, Mr Vinay Sanghi, Chief Executive Officer, Mahindra First Choice, said the Pune store is spread over 40,000 sq ft and is located on the Mumbai-Bangalore bypass road. It has the capacity to display about 200 cars.

He said that it would provide refurbished used cars certified through a 118 checkpoint list and backed by a warranty programme. The superstore would have under its roof purchase and sale of pre-owned cars, car finance and insurance, fitment of car accessories and assistance with paperwork and documentation. It has so far invested Rs 140 crore and would invest another Rs 70 crore for its expansion.

On the car market, he said in the US, the new car sales accounted for about 17 million while the used car segment was 44 million. In India, the new car sales were around 1.5 million while the used car segment catered to around 1.3 million customers.

He noted that the customer preference was more towards the A and B segment, which included cars such as the Alto, Wagon R and Santro . He noted that the Pune market recorded sales of about 3,000 new cars a month and used car sales of about 1,500 a month. He said the Pune superstore was looking at sales of around 2,500 cars a year. Asked about the entry of the $3,000 car segment, he noted that in the initial phase the A and B segment might witness a drop in their sales but it would help in driving in the volumes.

Looking at the sourcing of used cars, Mr Sanghi said the routes were – the customer walking in to sell the car, bringing in cars from the dealership where customers have exchanged their vehicles and third was corporate fleets. Mr Sanghi said it is also expanding its service chain.

More Stories on : Retailing | Cars | Consumer Finance | Mahindra & Mahindra Ltd

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