NEW DELHI: Amid growing competition in the used car market space, Ashutosh Pandey, CEO and MD of multi-brand certified used car company Mahindra First Choice Wheels (MFC), told TNIE that entry of newer players is a welcome sign for them and the industry since it increases the share of organised players.
At present, organised players roughly account for only 20% of the total volume, estimated at around 4 million units this fiscal, while 80% of the sales in this industry take place via unorganised players such as unregistered dealers and mom and pop stores.
“The market share game happens when the industry starts maturing. We are at a stage where there are only 4-5 of us. The game right now is not snatching market share. It is more now who can grow the fastest,” said Pandey.
His statement comes at a time when the used car market has seen an influx of heavily funded new age start-ups such as Cars24, Droom and Ola Cars. Ola, which entered this domain last month, had announced it is eyeing a market leadership position with $2 billion gross merchandise value for its vehicle commerce platform Ola Cars over the next 12 months.
Pandey, however, is confident of maintaining a lead as the company has a pan-India reach with 1,200
outlets and a growing digital channel.
“MFC is the largest player in the organised market with a 10% share. We sell the largest number of vehicles to end-consumers, dealers and brokers. In terms of sheer volume, no one is close to us,” he said.
This fiscal MFC expects to sell 225,000-250,000 vehicles while in the next 2 to 2 and a half years, they aim to touch the 500,000 mark. Industry size is also expected to grow from 4 million units this fiscal to 7.5-8 million units by 2025.
When asked if shortage of semiconductors, which has increased the waiting period of new cars, is fueling the current growth, Pandey said it may be a small reason but not the real reason.
He says that for some new models, people are happy to wait 8-10 months, meaning they are not moving to whatever is available. “Used cars have now become an available option and not a ‘compromise’.
Growing preference for personal mobility during the pandemic period, cars getting younger and lower interest rate in generating demand,” Pandey said, adding that MFC registered growth of 40% Year-on-Year this festive season and delivered 1,028 units on a single day in Dhanteras.