India's Mahindra First Choice Wheels Ltd. has 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 percent, 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 five 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 percent 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 percent 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 percent 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 USD 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®.
Source: Mahindra First Choice Wheels Ltd.
Edited by: G. Davila