Used car market size expected to double: Mahindra First Choice

Tags: News
Despite the current slowdown, the used car market is expected to be almost double the size of the new car market in the next 5 years with Mahindra First Choice Wheels Ltd aiming to sell 60,000 units this fiscal and growth of 30 per cent over last year, a top official today said.

Total size of used car market is 3 million units, with oraganised sector share at 15 per cent.

The used car market is already bigger than the new car market and is growing at a much faster pace compared to the new car market, Dr Nagendra Palle, CEO Mahindra First Choice Wheels Ltd, told reporters here.

The company was targetting to sell 60,000 units of used cars till March this year, he said replying to a query.

MFCWL, claimed to be India's top multi-brand certified used car company, was growing at a pace with a CAGR of 35 per cent by volumes over the last 5 years. The cumulative retail footprint under the MFCL brand is in excess of 7.5 lakh square feet.

Used cars have always been in demand. The ratio of new cars to used car in matured markets like US is 3:1, while in India, it was 1.2:1, which was very low, he said.

Changing lifestyles and social stigma of buying an old car being no longer an inhibition were among the reasons for increasing demand for used cars, he said.

The company today opened its 19th dealership-- Focuz Car Mart in Kerala and 66th otulet is South India.

The size of the used car market in the city is 500 cars a month while in the state it is 8000 cars, Yatin CHadha Senior Vice President, said.

The company plans to increase its network in the state to 25 outlets this fiscal, Dr Palle said.

As the dominant player in the multi-brand used car space in the country, the company was also investing in continuously innovating the used car retail experience, empowering the consumer with information, products and services, he said. CertiFirst, WarrantyFirst, Indian Blue Book and Autoinspekt were among their innvoations.

The company plans to have 500 outlets over the next 3 years. It presently has 350 outlets. MFCWL closed the financial year 2013 with sales of 46,000 used cars which is 35 per cent growth over the last fiscal.

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