With a network of 1,400 franchisees spread across nearly 700 cities, Mahindra First Choice is driven by its mission to transform the way used-cars are retailed in India. Tarun Nagar, Vice President – Retail Business, Mahindra First Choice, shares the company’s growth formula and plans further.
What is the preferred franchise model for MFCWL?
How has franchise model helped Mahindra expanding its footprint?
The franchise model has helped us in expanding our network nationally. For last year we have added an average of 450+ outlets annually, which further reinforces our faith in the franchise model of operation.
What are your criteria to choose the right franchise partner?
While choosing a franchise partner, we never limit ourselves on the background of our partner. We look ahead to a positive approach, direct involvement in business, enthusiasm towards used car business, customer focused approach, reliability and integrity, commitment, adaptability and willingness to learn.
What about training and support?
We help with working capital funding, store set up as per CI norms, assistance in recruitment of employees, excellent IT support with outlet management system (OMS) and training support for dealer employees.
What factors that you attribute the success of MFCWL?
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 per cent 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.
What’s the next plan?
We are planning to hit the 2,000-store mark this fiscal with a majority of them being in the smaller cities.
Franchise facts
Investment: Rs 30 lakh - 1 cr (depending on category of dealer)
Area: 1,500 – 3,000 sq ft
RoI: 25-30%
Expected break-even: 9 months
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