Mahindra First Choice to expand by 2011

Mahindra First Choice, a division of Mahindra and Mahindra Group (M&M) is planning to expand its network by March 2011 with another 230 outlets. It is also aiming to take this count to 300 by March 2012.

Mahindra First Choice deals in second hand cars and plans to set up its sales and service outlets in rural areas across the nation to achieve its target of selling one lakh vehicles by 2015. The company generates 80 per cent revenue from the metros and state capitals, while the Tier II and III cities contribute merely 20 per cent to it. So, the company is aiming to tap the rural market through its expansion plans.

Presently, the company supports 114 outlets for sales and services. Out of this, only six outlets are owned and operated by the company while the rest are franchisee owned. In value terms, the company generated revenue of Rs 220 crore last year and is aiming a turnover of Rs 400 crore.

First Choice repairs and sells second hand cars. Vehicle service and accessories sales are financed through Mahindra Finance, insurance services and financial institutions.