Auto major Mahindra & Mahindra Ltd has planned to invest Rs 250 crore in three to five years to set up a chain of multi-brand service outlets under the brand name Mahindra First Choice Services.
Speaking to media, Rajeev Dubey, member, group management board of Mahindra & Mahindra, said: “We will set up company-owned outlets in the initial years, and gradually we will have franchisee-owned outlets. We hope that the entire after-market business will generate revenue of Rs 3,000 crore by 2015.”
The company also announced the launch of its new business vertical that consolidates its after-market business, mainly servicing, sale of pre-owned cars and spares business.
“With a growing economy, the after-market business is also growing. We want to build an ecosystem for pre-owned car market which replicates the ecosystem of new car market,” said Anand Mahindra, vice-chairman and managing director, Mahindra Group.
The company is also planning to increase its used-car outlets from the current 67 to 240 in five years, out of which 30 will be developed into superstores offering multiple services.
Mahindra Spares Business, the company’s division that sells Mahindra spare parts, will also start retailing products of other manufacturers. “About 70 per cent of vehicles in India are from Maruti and Tata Motors. We will start selling the spares of these vehicles initially,” said R Bhurat, chief executive of Mahindra Spares Business.
