Mahindra First Choice Wheels, the multi-brand used-car chain, will rapidly expand its dedicated network for selling pre-owned small commercial vehicles in the current year.
After a couple of years of testing the waters, the company, which has established itself in the used-car business, has now identified a niche in demand for small commercial vehicles, according to Yatin Chadha, Senior Vice-President – Retail, Mahindra First Choice.
He said the company has 57 outlets handling sale of certified small commercial vehicles such as the Ace, Bolero, Maxximo and the Genio. Small businesses need expert assistance in picking out good quality used commercial vehicles. There is a huge demand in small towns and cities and in the current year Mahindra First Choice will nearly double the number of franchise handling commercial vehicles.
Addressing media persons at the launch of a certified used-car franchise in the city, Chadha said the company sold over 69,000 used-car last year which was a growth of about 24 per cent over the previous year.
It hopes to sustain this momentum in the current year. The used car market is estimated at about 3 million units a year with the organised sector accounting for about 18 per cent of the business.
There is a huge headroom for growth with the new car market estimated at about 3.6 million units and growing. People are willing to trade in their cars earlier to upgrade. The average age of used cars handled by its chain is three-four years, he said.