Mahindra First Choice Wheels raises $15 Million

Mahindra First Choice Wheels Ltd. (MFCWL), India’s No. 1 multi-brand used vehicle company, has signed a definitive agreement to raise $15 million (Rs. 94 Crores) from San Francisco based investment advisor firm, Valiant Capital for a minority stake in the company. This is the second round of external private equity raised by MFCWL, with the first one in 2008 from Delhi based Phi Capital, who continues to be an investor in the company.

MFCWL has experienced rapid growth in its retail, wholesale and technology enabled businesses. The capital will be used to fund its growth plans over the next few years.

Founded by Mr. Anand Mahindra, MFCWL’s mission is to “organize” every facet of the used car industry and most important of all provide the used car consumer with a choice of certified pre-owned vehicles and a purchase experience that mimics the new car buying experience. “MFCWL is yet another example of innovation and entrepreneurship within the Group, where new business models are being explored and implemented with persistence. It is exciting to see marquee investors attracted to MFCWL and participating in its growth story where much is yet to come!” said Mr. Anand Mahindra, Chairman & Managing Director, Mahindra & Mahindra and also the Chairman of Mahindra First Choice Wheels.

MFCWL is the only true used car business with a successful “hybrid” business model bridging the consumer experience online and on the ground. With the physical presence critical to the used car business, the company has invested aggressively to provide consumers with a consistent omnichannel experience. Commenting on this strategy, Mr. Rajeev Dubey, President (Group HR, Corporate Services and After-Market) & Member of the Group Executive Board, Mahindra & Mahindra Ltd. said, “We believe the “brick + click” ecosystem is very powerful in the used car business and over the years we have seen our consumers and dealers appreciate this value proposition. We will continue to invest in the overall growth of the hybrid model in the years to come”.

To enable the hybrid used car ecosystem, MFCWL has launched several technology enabled products and services to address the key drivers of trust deficit in a used car transaction namely – vehicle condition, paperwork, pricing and experience. “Consumers are looking for more tools and insight related to used vehicles. We are leveraging our deep wholesale and retail experience on the ground to launch a slew of technology enabled products that will materially increase the confidence with which they can transact on used vehicles – whether buying or selling”, said Dr. Nagendra Palle, CEO & Managing Director of MFCWL. He added, “We have had a very successful partnership with Phi Capital over the years and we welcome Valiant Capital as a new partner to support us in our endeavour to become a world class used car company.”

The company plans to use the fresh funds infusion to accelerate its growth both of the physical network as well as adoption of its technology enabled products and services used by all stakeholders in the industry – NBFCs, Banks, OEMs, Dealers and Consumers. MFCWL is planning to end this fiscal year (2015) with 500 franchise outlets and grow to 1,800+ outlets in the next 5 years. In addition, it plans to use the funds to broaden its reach for its products and services across other used vehicle categories. In Fiscal Year Ending 2015, MFCWL used vehicle volumes sold will be 140,000 between its retail and wholesale and it will complete 140,000 Autoinspekt inspections,

The used car market, with an estimated size of 3.2 million units, is already larger than the new car market and is growing faster than the new car market. The current slowdown notwithstanding, it is expected that the used car market will become almost double the size of the new car market in the next 5 years.

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Indian Cars Score Zero in Safety

While European cars scored better, many Indian cars and among them mostly small cars do not meet Global NCAP standards (this is a body that regularly crash tests cars in the Europe) and UN Safety Standards. When it came to crash and safety tests, Many Indian cars scored zero while the European cars scored better.

NCAP has taken the initiative to conduct crash tests on some of the India’s best selling cars. Ford Figo, Hyundai I 10, Volkswagen Polo, Tata Nano and Maruthi Suzuki Alto 800 were among them. Global NCAP test and the UN’S basic safety tests were conducted. Despite not having a driver air bag only Ford Figo passed the UN test.

Tests also reveal that, Indian cars lack adequate safety standards and more than that Indian roads are among some of the deadliest roads in the world. There is no wonder in statistics revealing that, one in 10 people killed in a road accident worldwide is Indian. Well, these are a few among the many challenges that Indian cars are facing in Today’s time and there is a long way that we need to travel to meet the safety standards.

So, while purchasing cars make sure that you check the safety standards and then take a decision to choose the right one.


Volkswagen has decided to upgrade all its cars with airbags, and has taken a decision to remove cars which do not air bags, from the Indian market. In the words of NCAP "it was awarded a pass based on dummy readings from the 64kph crash". For cars that are produced in India rear passenger seat belts and air bags were optional, and more than this one more serious issue that is of concern is that, none of the cars were required to be tested for their ability to withstand a collision.


Tests also reveal that, Indian cars lack adequate safety standards and more than that Indian roads are among some of the deadliest roads in the world. There is no wonder in statistics revealing that, one in 10 people killed in a road accident worldwide is Indian. Well, these are a few among the many challenges that Indian cars are facing in Today’s time and there is a long way that we need to travel to meet the safety standards.

So, while purchasing cars make sure that you check the safety standards and then take a decision to choose the right one.

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Mahindra First Choice Wheels inaugurates 4th authorized dealership in Indore

Mahindra First Choice Wheels Ltd. (MFCWL), India’s No. 1 multi-brand certified used car company, today expanded its footprint in Central India with the inauguration of its authorized dealership, Gujarat Motors, in Madhya Pradesh. The dealership is located at Presige Tower, Indra Complex, Navlakha and is spread over 2000 sq. ft.

The outlet was inaugurated by Mr. Yatin Chadha, Senior Vice President - Retail Business, Mahindra First Choice Wheels Limited.

“With this inauguration, our network strength has expanded to 13 dealerships in Madhya Pradesh, with four in Indore alone. The average size of the used car market in the state is 6000 cars, which makes Indore a strategic market for the company and we look forward to working with Gujarat Motors – one of the top used car dealers in Indore - to further enhance our presence in the region,” said Yatin Chadha, Senior Vice President - Retail Business, Mahindra First Choice Wheels Limited.

“We are delighted to be associated with Mahindra First Choice Wheels which already enjoys strong brand equity in Indore. Gujarat Motors will offer the entire range of services for customers, including purchase and sale of multi-brand certified used cars, car finance, insurance, fitment of car accessories and assistance with paperwork and documentation,” said Mr.Anand Shah, Gujarat Motors.

Mahindra First Choice Wheels currently has a significant presence in Madhya Pradesh with 13 dealerships in eight cities and further plans to expand this number to 21 outlets by year end. Key focus towns include Bhopal, Jabalpur, Gwalior, Ujjain, Khandwa, Sagar, Narsimhapur, Satna.

MFCWL closed FY 14 with 351 outlets, a growth of 30% from FY13. These outlets are present in 208 towns across the country, with 64 towns boasting of more than one outlet. MFCWL’s B2B auction volumes increased over 50% with nearly 60 commercial sellers using the platform to sell vehicles to nearly 10,000 wholesale buyers. Autoinspekt – MFCWL’s industry first inspection service offering - saw rapid adoption in the B2B space as well.

Between its retail, wholesale and inspection services, the MFCWL enterprise participated in 1,50,000 used vehicle transactions.

The company is driven by its mission to transform the way used cars are retailed and has made several innovations along the way. The list of innovations include developing a unique franchisee based business model, selling certified multi-brand used cars under warranty and offering the most comprehensive warranty product available on used cars in the country, in addition to a differentiated consumer experience through launch of its ‘Highline’ stores for selling high-end multi-brand used cars.

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Maruti Suzuki shares zoom 4.2 percent

The shares of Maruti Suzuki zoomed 4.2 per cent on Friday following its net profit as declared in the quarter three results.

Maruti Suzuki's net sales in October to December rose by 46 per cent from year ago to Rs 10,957 crore, following the good sale of its cars in 2012.

The company carries the punch line 'count on us' has been really proven well in India.

The small cars from Maruti Suzuki have been largely accepted by India auto customers. According to media reports the company had topped in the the sales on small cars in 2012.

The company has been one leading car marker of most popular small cars in India.

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Toyota is top-selling automaker 2012

The Japanese company Toyota has become the top-selling automaker in the world for the year 2012; the company has sold 9.7 million cars and truck.

The company has topped in global sales followed by General Motors, which sold 9.29 million cars and trucks in last year.


The Japanese company, Toyota’s sales rose 22 per cent in 2012, while General Motors sales rose 2.9 per cent.


Overcoming from the natural disasters like the earthquake, Tsunami, the company has become the top auto seller in the globe last year.

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Maruti Suzuki cars to cost more from January 2013

In a significant development, the Maruti Suzuki company has declared to hike the price of cars by around 20,000 rupees from January 2013.

Those are planning to buy a car from this company need to pay more the cars from January 2013. But the news of hike in price have pushed the scrips of Maruti Suzuki to one year highest mark.

The share of the Maruti Suzuki company have zoomed around 3 per cent on Friday after the company declared price hike for its cars by next year.

On BSE the shares of Maruti Suzuki touched Rs. 1,533.75 by gained 3.54%  and on NSE its stocks were traded at Rs. 1,535.40 with  3.56% up. 

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Shining Car Market in India!

Business News: Good news for the auto market in India that car sales went up in November 2011 comparing to the last year statistics. Most of the new models and variant cars impressed customers.

The car market in India may shine in the next year also (2012). Indian economy has been facing the rough patches of the global slowdown, where the GDP achievement plunged. But the car market has been its on pace, there was no impact of slowdown on car market in India.

It can be expected that the new year 2012 would be great one for the car markers and auto companies in India. The stock market is however disappointed investors as the BSE and Nifty tumbled many times leaving big loss in the market.

The impressive sale of automobile particularly cars in India, will help the auto shares in the stock market. Hope the lead will bump the stock market in India. The BSE today moved up 360 points following positive signal from the global stock markets.

The car market in India will shine further as the big occasion the year end of 2011 and welcome note of 2012, and customers have many options to chose the best models introduced this year.

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10 Best Small Cars in India

The introduction of Nano in Indian market has brought a revolution in the Indian auto market, the concept was clear that - affordable car for everyone. No matter how much you earn but if you wish you can purchase one small car for your family.

The auto market has been hit due to the hike in the interest rate by the Reserve Bank of India making auto loans more dearer for the customers.

Here are the top 10 small scars in India ( not as per any ranking or price):

1. Chevrolet Spark
2. Fiat Figo
3. Maruti Suzuki Alto
4. Maruti Suzuki WagonR
5. Maruti Suzuki Swift
6. Maruti Suzuki A-Star
7. Hyundai i10
8. Hyundai i20
9. Hyundai Santro Xingl
10. Tata Indica Vista

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Cas sales slide due to high inlfation in June 2011

The inflation hit hard on the car sale in India. In the month of June 2011, the car sales decreased by 4.3 per cent in the top three car segments.

Maruti Suzuki, Hyundai Motor and Tata Motors, companies have witnessed a drop in combined sales of 4.3% in June 2011.

The inflation has been the major reason for the slide in the auto business in India. The auto market is also badly affected due the inflation and variation in the interest rates by the Reserve Bank of India.

Following the hike in the interest rate to tame the inflation by the RBI, the banks - ICICI, IOB, Canara Bank have raised their primary lending rate.

That make the loans more costlier for the consumers. It is speculated that in the next quarter also the sales might get affected due to the costlier car loans.

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Maruti sales crossed 1,00,000 units in May

India’s largest passenger car major Maruti Suzuki reported a 28 percent rise in vehicle sales for the month of may. It is India’s leading car maker whose sales in the month of May reached to 1,02,175 units. Last year in the same month Maruti Suzuki sales had reached upto 79,872 units.

It has happened for the first time that Maruti Suzuki sales has crossed 1,00,000 units. It was reported that the domestic sales increases 27.2 percent to 90,041 units this month. The exports increased by 33.5 percent to 12,134 units in comparision to the last year.

In comparision to the previous year May sales has showed a better record which will help the company to have growth in the coming festival season. They are trying their best to beat the selling of low selling months.

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Maruti Suzuki India Recalls One Lakh 'A-Star' Cars over 'faulty rubber gasket'

Business News This Week: The Maruti Suzuki India has reportedly found the 'faulty rubber gasket' in its small cars 'A-Star' manufactured before August 2009. The company has recalled one-lakh cars over this. According to media reports, the company has intimated to its customers through letters. However, the company reportedly also claimed that no complaints over this had been received.

According to sources the fault was discovered during the internal survey. This sort of recalling the manufactured cars were seen with major companies too in the international market. The A-Star model of Maruti Suzuki India was launched in India on November 19, 2008. Most of the customers having this model car would be eager to know more about any faults their owned cars.

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