IndiBlog

India's first organised used car player Mahindra & Mahindra's FirstChoice plans to invest Rs 200 crore in the next 5 years for its expansion and opening of more outlets and superstores which would b large format (40000 sq.ft) used car showrooms. The company also want to build it's profile in Eastern India where it is currently weak. M&M is hoping to take FirstChoice public in three years time and the money will help in brand building campaigns as well. Its interesting to note that M&M continues to pump money into FirstChoice even though at the moment it is reportedly not a very profitable brand. It's well known that their vehicle certification process has certain loopholes and that the extra 5%-7% that they charge over the market rate for this certification and limited warranty is not an attractive proposition for many buyers. Even now, used car buyers in India buy primarily through word of mouth and then through the local used car dealer whose marketing skills far exceed those of the guys at FirstChoice.