Mahindra First Choice Wheels extends its leadership in the used car industry
Mahindra First Choice Wheels extends its leadership in the used car industry
Revenues grow 80% in FY17
- Mahindra First Choice Wheels (MFCWL) revenue for F17 crosses Rs. 100 crores. Transaction revenues grew 80%
- Over 1.2 million inspections completed (over 200% growth), on the back of strong adoption of MFCWL's Autoinspekt platform
- The company ended the year with over 1,200 franchise outlets that sold 220,000 vehicles through its retail and wholesale networks (40% growth)
- Awarded National Retailer of the Year for 2017
Mumbai, May 23, 2017: Mahindra First Choice Wheels Ltd. (MFCWL:mahindrafirstchoice.com), India's No. 1 multi-brand used car products and services company, extended its leadership position in the used car industry with a strong performance in F17 in all areas of the business.
The company reported strong growth in its technology enabled businesses that include its auctions(eDiig.com), inspections (Autoinspekt.com) and IndianBlueBook.com. Revenue growth in F17 for the technology enabled businesses was over 200%, enabled by higher customer adoption of its solutions and launch of new products and services. With these technology enabled solutions, MFCWL is focused on enabling its customers (institutional clients, dealers and consumers) to achieve high levels of transparency and efficiency in a sector otherwise largely unorganised in nature. MFCWL in F17 was the leading vehicle auctions and inspections services provider in India. IndianBlueBook.com was amongst the Top 5 online automotive portals in the country.
"It's heartening to see MFCWL's success over the years and establish itself as the leading multi-brand used car network. It was founded with a mission of addressing the needs and fear of a first-time car buyer and the company is well on its way of serving that mission", said Anand Mahindra, Executive Chairman,Mahindra Group and Chairman, MFCWL.
MFCWL's 1,220 franchisees operate in over 650 towns with high regional penetration pan-India. Its dealer network grew 65% year over year. The company has showrooms of various formats that cater to consumers in large metros as well as in "D category" towns with population under 1.5 lakhs. 60% of MFCWL's customers are first time buyers of an automobile.
"MFCWL has for long believed that a "hybrid" business model is one of the key enablers of success in the used car industry. With nearly 50% of revenues from solutions "in the cloud" and an equal proportion coming from "on the ground" networks, MFCWL is truly hybrid and perhaps the only hybrid player at scale in the country", said Rajeev Dubey, Group President - HR & Corporate Services, CEO - Aftermarket Sector,Mahindra Group. MFCWL's F18 plans call for continuing growth on the back of network expansion and further adoption of its products and services. It is also evaluating bringing new products and innovation, some in collaboration with Cox Automotive, the global leader in automotive products and technology solutions and a strategic investor in MFCWL.
"F17 was a pivotal year for MFCWL in which we have proven our business model by demonstrating revenue and margin growth with profitability. We believe we have a strong sustainable business model in a challenging industry and we hope to demonstrate sustained growth performance in F18", said Dr. Nagendra Palle, CEO and Managing Director, Mahindra First Choice Wheels.
The company's unique business model has also been acknowledged by external investors. The company has raised funding from Silicon Valley based Hedge Fund, Valiant Capital and Cox Automotive, a $17 Billion US based enterprise providing digital marketing, classifieds, software, wholesale and eCommerce solutions to dealers, consumers, manufacturers and financial institutions. Its brands include Manheim®, Autotrader®, Kelley Blue Book®, Dealertrack®, vAuto®, Xtime®.
MFCWL received "National Retailer of the Year" award for 2017 from Franchise India where it competed with franchisors across all retail sectors.
About Mahindra First Choice Wheels
Mahindra First Choice Wheels is a dominant player in the Indian used vehicle eco system providing products and services to cater to the needs of retail and wholesale customers utilizing its "on-the-ground" and "in-the-cloud" capabilities.
The company's business model is based on 4 key building blocks:
Vehicle retail – Under the "Mahindra First Choice" brand name the company has created a unique franchisee driven business model and is on a mission to transform the way used cars are retailed in the country. The company has a network of 1200 plus outlets spread across 600 plus cities, which include metros, mini metros and smaller towns. The cumulative retail footprint under the Mahindra First Choice brand is over a million sq feet.(mahindrafirstchoice.com)
Vehicle auctions – The company is the market leader in the online auction space, having sold in excess of 3 lakh vehicles through the 'eDiig' auction platform (ediig.com). eDiig is a classic wholesale marketplacewhere multiple sellers and buyers compete in a transparent online environment. With over 20,000 registeredbuyers and sellers, eDiig aims to leverage its 'True time bids' solution, to seamlessly bridge the requirements of offline and online participants, thus enabling transparency and superior vehicle price discovery. eDiig Auctions take place across 1000 locations in India and over 85000 vehicles were sold through its platform in FY 17. With its mobile auction application eDiig Now, the company will provide buyers on-the-go auction and bidding services.
All these have made eDiig, India's most trusted Automobile Exchange Platform.
Vehicle inspections – Autoinspekt is a comprehensive used vehicle inspection and valuation service for lenders, dealers, OEMs and consumers. By combining the use of technology and assurance of physical inspection, Autoinspekt has built capabilities to service inspection and valuation needs across categories and purposes.(autoinspekt.com)
an opportunity to develop the IndianBlueBook.com, which is also referred to as IBB. Having started out as a used car pricing widget, Indianbluebook.com has transformed into a full-fledged online research platform for customers to buy and sell their car. (indianbluebook.com)
The Mahindra Group is a USD 17.8 billion federation of companies that enables people to rise through innovative mobility solutions, driving rural prosperity, enhancing urban living, nurturing new businesses and fostering communities. It has a leadership position in utility vehicles, information technology, financial services and vacation ownership in India and is the world's largest tractor company, by volume. It also enjoys a strong presence in agribusiness, components, commercial vehicles, consulting services, energy, industrial equipment, logistics, real estate, steel, aerospace, defence and two wheelers. Headquartered in India, Mahindra employs over 200,000 people across 100 countries.
Learn more about Mahindra on mahindra.com/Twitter and Facebook: @MahindraRise
Media contact information:
Metebelle Lobo: General Manager, Group Communications, Mahindra and Mahindra Ltd.
Mobile: +91 9769212078
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