Mahindra the multi-brand car servicing company is planning to get into service of two-wheelers while it will be expanding its current network by spending a capital of about Rs 100 to Rs 125 crore.
The Mahindra First Choice is wholly owned by Mahindra Ltd and right now they are planning to be present in different petrol bunks where they will be provided with minor repairs. Mahindra has made a tie-up with Hindustan Petroleum Corporation Ltd so that they are able to be present in all the different petrol stations.
According to Mahindra, the two-wheeler service industry is still not touched and this will be a perfect way for them to capitalize on the situation. This will be a perfect project for them because according to statistics, 30 percent of the after-sales service of two-wheelers is done in service stations and the rest is done at local places.
Mahindra will try to capitalize on the 70 percent customers who generally service their two-wheelers in local places. This project of Mahindra is very ambitious and if Mahindra is able to execute its plan the way they want, then they will very easily be able to make a name for themselves in the two-wheeler service market.
Mahindra will be launching its two-wheeler service business in the month of December this year and they will be trying to set up about 2,500 service stations for two-wheelers by the end of 2023. The 4-year plan of Mahindra is quite ambitious and Mahindra is very sure that they will be able to reach their desired number.
According to Vijayakumar Mahindra, the First Choice Service has been successfully been able to launch their private label parts for all the two-wheelers. Mahindra will also be increasing their business of four-wheelers in the coming years and they are planning to set up 1000 workstations from 330 workstations by the year 2023.
Mahindra is having a good amount of traction in the level C and level D cities where they sell original as well as quality parts. Mahindra has about 35 warehouses spread across India right now and they are planning to increase this number drastically. The company is right now planning to increase their revenue by almost 50 percent after the launch of their new business.