Mahindra to invest Rs.8 bn in used car business

Chennai, Oct 1 : Auto major Mahindra and Mahindra Ltd plans to invest around Rs.8 billion (USD 174 million) in its used car business, being done by Mahindra First Choice Services Ltd (MFCS) under the brand of CarXSpace, a top group official said here Wednesday.

"In five years time, we will open around 300 outlets across the country," Rajeev Dubey, Mahindra group management board member, told reporters.

A subsidiary of the USD 6.7-billion Mahindra and Mahindra, MFCS is in the space of servicing and sales of used cars and also spare part sales.

Inaugurating the company's first CarXSpace outlet here, Dubey said the turnover of MFCS will reach Rs.65 billion by 2015.

MFCS may get into e-commerce mode by setting up a common platform for buyers and sellers, he added.

According to Dubey, in India around one million used cars were sold last year.

"The sales of car spares at the retail end is estimated to be around Rs.200 billion," he added.

MFCS is also in talks with non-life insurance companies to offer cashless damage claims settlement for car owners.