Mahindra's pre-owned car biz eyes 30% sales growth this year
New Delhi: Mahindra First Choice Wheels, the multi brand pre-owned cars business of the Mahindra group, is expecting around 30 percent growth in sales this year on the back of an aggressive network expansion.
The firm, which currently has 255 outlets, will be adding another 100 more this year and take its overall reach to 210 cities across India from 160 at present.
"The overall auto industry was down last year. We managed to sell 46,000 units last year and this year we are targeting sales of 60,000 units of pre-owned cars," Mahindra First Choice Wheels Vice President Retail Business (Franchise & Company controlled outlets) Yatin Chadha told PTI in an interview.
In order to meet the higher sales target, the company will be adding new outlets in 50 new cities.
"Last year we added 100 new showrooms. Our total is 255 outlets now. We will be adding another 100 this year and our presence will be increased to 210 cities and towns across India," Chadha said.
The company sells pre-owned cars, from Tata Nano to Mercedes Benz.
"Apart from expanding the network, this year we will also focus on offering new products such as financing schemes or insurance for customers to drive the sales growth," he said.
At a time when the automobile industry is going through a downturn, he said, offering good cars and lesser cost for customers could be the key to propel sales.
Car sales in India fell for the first time in a decade - down 6.69 percent in 2012-13 as the industry struggled to cope with demand slump due to a sluggish economy.
As per data released by Society of Indian Automobile Manufacturers (SIAM), passenger car sales in the last fiscal stood at 18,95,471 units, compared to 20,31,306 units in the previous fiscal. This was the first annual decline since 2002-03, when car sales had dropped by 2.09 percent.
When asked about the potential of the pre-owned car business, Chadha said: "The Indian total pre-owned car market is around 1.3 million units at present. We sold just 46,000 units last year. We have not even scratched the surface."