Cox Automotive to Invest in Manhindra First Choice Wheels
With India’s growing new-vehicle market making way for accelerated growth in its used-vehicle market, Cox Automotive has made a strategic investment in Mahindra First Choice Wheels Ltd. (MFCWL) (www.mahindrafirstchoice.com).
MFCWL, part of the multinational conglomerate Mahindra Group, is India’s largest multi-brand certified used car company with more than 650 franchise outlets spread across nearly 300 cities and towns throughout the country. In addition, MFCWL’s businesses include Indian Blue Book (IBB) (www.indianbluebook.com), India’s first and only used car pricing guide eDiig (www.ediig.com), the company’s auction platform, and Autoinspekt (www.autoinspekt.com), its third party inspection business.
“Our investment in Mahindra First Choice Wheels Ltd. furthers Cox Automotive’s strategic plans to create and grow used vehicle marketplaces,” said Joe Luppino, Chief Corporate Development Officer, Cox Automotive. “This opportunity allows us to partner with a company with a reputation of delivering high-quality used car products and services to dealers and consumers in the fast-growing Indian automotive market.”
MFCWL is a leader in India’s used vehicle industry with a diversified portfolio of products and services. Its vision is to build a used car ecosystem for India by bridging wholesale and retail channels while leveraging physical and online infrastructure. Its unique franchisee-driven business model has transformed the way used cars are retailed in India, offering consumers a trusted used vehicle marketplace and providing dealers with a variety of used car services, including physical and online auctions, vehicle inspections and transport. Backed by industry leading certification and warranty products, MFCWL also offers an array of consumer services such as vehicle inspections, insurance and financing.
“We welcome Cox Automotive as a strategic investor in MFCWL and look forward to a long-term, mutually beneficial association,” said Nagendra Palle, CEO and Managing Director, MFCWL. “Cox is a marquee brand globally and it’s great to see them enter India with MFCWL.”
India’s strong economic growth is creating a wealthier population with immense spending power. Boasting the world’s sixth largest new car market, India’s new car sales grew to nearly three million units last year and are expected to hit the four million mark by 2019 according to Automotive World. The Indian used car market is expected to outpace new-car sales growth over the same five-year period, climbing from 3.6 million units sold in 2014 to a forecasted 9.6 million units by 2019. Coupled with the fact that India has the world’s third largest online population, significant opportunities exist for dealers, consumers and the automotive industry as a whole.
“There is vast untapped potential in the Indian marketplace,” added Luppino. “With a suite of products that serves dealers, consumers, financial institutions and insurance companies, Mahindra First Choice Wheels is well-positioned to create an organized ecosystem for the used car market and capture value from its expected growth.”
In addition to MFCWL, Cox Automotive’s international investments also include China’s AutoSt., a used vehicle marketplace for dealers and consumers, as well as BitAuto, a leading online provider of car classifieds and car content. This venture, along with other investments, such as the creation of RMS Automotive and the purchase of Brazil’s CarBizz, further strengthens Cox Automotive’s commitment to the global automotive marketplace.