Mahindra First Choice Wheels Gets Strategic Investment from US Based Cox Automotive
Mahindra First Choice Wheels Ltd. – USPs
• India’s No.1 multi-brand certified used car company, Mahindra First Choice Wheels Ltd. (MFCWL), has a network of 650 outlets spread across 300 locations in the country which includes metros, mini metros and smaller towns. The company is growing at a rapid pace with a CAGR of 35% by volumes over the last 5 years.The cumulative retail footprint under the Mahindra First Choice brand is in excess of 8.5 lakh sq feet
•The company has created a unique (first globally) franchisee driven business model and is on a mission to transform the way used cars are retailed in the country. It is also the winner of the prestigious “Franchisor of the year” award in the Automotive business category by Franchisee India
• MFCWL is the market leader in the online auction space, having sold in excess of 3 lakh vehicles through the ‘eDiig’ auction platform (www.ediig.in)
• The company has recently launched a new product called the Indian Blue Book (IBB) URL: www.indianbluebook.com which is India’s first and only used car pricing guide that incorporates transaction data with an analytical engine. IBB has got immediate traction with most leading banks and NBFCs, car portals, auto magazines, auto OEMs, dealers and customers subscribing to it
• A new product for car evaluation called ‘Autoinspekt’ (www.autoinspekt.com) has been launched. Autoinspekt is an unbiased third party vehicle evaluation report to determine the condition, quality and value of a used vehicle. The report itself covers 53 parameters across 8 vehicle systems of the car and is prepared after physical inspection of the vehicle by a trained engineer. The company has delivered over 1 lakh inspections to date
November 23, 2015, Mumbai: Mahindra First Choice Wheels Ltd. (MFCWL), India’s No. 1 multi-brand certified used car company, today announced that Cox Automotive has made a strategic investment in MFCWL through a secondary purchase.
This investment brings together two leaders. Cox Automotive is a global leader 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 is the leading pre-owned car retail and wholesale services provider in India. In addition to being the leading multi-brand pre-owned car franchise player, it is the leading provider of auction, inspections and pricing solutions in the Indian market. Its brands include Mahindra First Choice Wheels, Indian Blue Book, eDiig, and Autoinspekt.
Cox Automotive is a subsidiary of Atlanta based Cox Enterprises, Inc. (CEI). Founded in 1898 in Dayton, OH, CEI is one of the most respected privately held businesses in the United States. Its other major businesses include Cox Communications and Cox Media Group, both major players in the media and communications industries.
“We founded MFCWL as a startup with a vision to revolutionize the way that pre-owned cars are bought and sold in India. This strategic investment by Cox Automotive reflects the strong progress made by us over the last few years. We look forward to a long term partnership with them based on our shared values,” commented Anand Mahindra, Chairman, Mahindra Group.
“We are delighted to have Cox Automotive make an investment in MFCWL. The fact that an entrepreunerial venture like MFCWL is attracting PE and strategic investments validates our belief that we at Mahindra have a flourishing entrepreunerial ecosystem creating real value”, said Mr. Rajeev Dubey, CEO, Aftermarket Sector, Group President, HR & Corporate Services and Member, Group Executive Board.
MFCWL now has over 650 franchise outlets in 300 towns across India. Recently, it launched a commercial vehicle franchise business in addition to its industry leading multi-brand pre-owned passenger cars business. Over the last three years, it has pioneered the use of technology to deliver industry first solutions such as Indian Blue Book (www.indianbluebook.com) for pricing solutions and Autoinspekt (www.autoinspekt.com) for inspection services.
With its portfolio of products and services, MFCWL is the only true ‘hybrid’ model in India and is uniquely positioned to organize every element of the used car value chain within the country.
“Our investment in Mahindra First Choice Wheels Ltd. furthers Cox Automotive’s strategic plans to create and grow used vehicle marketplaces,” said Joe Luppino, Chief Corporate Development Officer for Cox Automotive. “This opportunity allows us to partner with a company that has a reputation for delivering high-quality used car products and services to dealers nd consumers in the fast-growing Indian automotive market.”
Commenting on the investment, Dr. Nagendra Palle, CEO and Managing Director, MFCWL said, “It’s heartening to see Cox Automotive enter India with MFCWL. We see deep synergy between the two organizations and aim to leverage their global presence and expertise to take MFCWL to the next level.”
HDFC and Phi Capital participated in the secondary sale.
About Mahindra First Choice Wheels
Mahindra First Choice Wheels Ltd. (MFCWL) is the country’s preferred used car mart and is India’s number one multi-brand certified used car player. The company plans to expand this number to 1000 outlets over the next three years. This implies that customers will soon be able to choose from a range of certified used cars throughout India, including the metros and tier-2 towns and cities. MFCWL closed F-15 with sales of 69,000 used cars, which is 30% growth over the last financial year.
Tremendous attention to detail is required to ensure that each used car meets a high level of quality. Before purchasing the car, a trained engineer thoroughly inspects the vehicle and also sees to it that all papers are in order. After purchase, the car is refurbished and undergoes an extensive 118 point quality check by a trained engineer, as part of the company’s robust certification process. The objective behind the care and diligence exercised is to present the customer with a car in good condition.
In short, buying a used car from Mahindra First Choice offers several advantages, including quality assurance, safety and a hassle-free driving experience. To give complete peace of mind to the used car buyer, the company has Warranty products like WARRANTYFIRST, CERTIFIRST and CERTIFIRST+.
Subject to specific terms and conditions, WARRANTYFIRST provides Warranty for all the major mechanical and electrical components of the car. The concerned components are covered for a period of 12 months or 15,000 km, whichever is earlier. The CERTIFIRST Warranty covers the car’s Engine and Transmission for a period of 6 months or 7,500 Km, whichever is earlier while CERTIFIRST+ covers for a period of 12 months or 15000 kms, whichever is earlier.
The Warranty products come with the facility of 24X7 Roadside Assistance across the country. The 24x7 Roadside Assistance, subject to specific terms and conditions, assures the certified used car buyer that should the car breakdown, he will be provided assistance.
The Warranty product gives tremendous peace of mind to buyers of certified used cars. Mahindra First Choice has a website - www.mahindrafirstchoice.com - which provides complete assistance to customers wishing to buy or sell a car. Mahindra First Choice also has retail finance relationships with major banks like Mahindra Finance, HDFC, Kotak Mahindra and ICICI Bank for helping consumers buy their dream cars through loans.
The company has also launched a new product, the Indian Blue Book (IBB) (www.indianbluebook.com), which is the most comprehensive unbiased resource for consumers and dealers to determine the value of their used cars.
A new product for car evaluation called ‘Autoinspekt’ (www.autoinspekt.com) has been launched. Autoinspekt is an unbiased third party vehicle evaluation report to determine the condition, quality and value of a used vehicle. The report itself covers 53 parameters across 8 vehicle systems of the car and is prepared after physical inspection of the vehicle by a trained engineer.
The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural prosperity, enhance urban lifestyles and increase business efficiency.
A USD 16.9 billion multinational group based in Mumbai, India, Mahindra employs more than 200,000 people in over 100 countries. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two wheeler industries.
In 2015, Mahindra & Mahindra was recognized as the Best Company for CSR in India in a study by the Economic Times. In 2014, Mahindra featured on the Forbes Global 2000, a comprehensive listing of the world’s largest, most powerful public companies, as measured by revenue, profit, assets and market value.
The Mahindra Group also received the Financial Times ‘Boldness in Business’ Award in the ‘Emerging Markets’ category in 2013.
About Cox Automotive
Cox Automotive, Inc. is transforming the way the world buys, sells and owns cars with industry-leading digital marketing, software, financial, wholesale and e-commerce solutions for consumers, dealers, manufacturers and the overall automotive ecosystem worldwide. Committed to open choice and dedicated to strong partnerships, the Cox Automotive family includes Manheim®, Autotrader®, Kelley Blue Book®, Dealertrack®, vAuto®, Xtime®, NextGear Capital® and a host of other brands. The global company has nearly 30,000 team members in more than 200 locations and is partner to more than 40,000 auto dealers, as well as most major automobile manufacturers, while engaging U.S. consumer car buyers with the most recognized media brands in the industry.
Cox Automotive is a subsidiary of Cox Enterprises, Inc., an Atlanta-based company with revenues of more than $17 billion and approximately 50,000 employees. Cox Enterprises’ other major operating subsidiaries include Cox Communications and Cox Media Group.
For more information about Cox Automotive, visit www.coxautoinc.com.
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