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This story is from February 7, 2018

Mahindra First Choice Services to foray into two-wheeler spare parts aftermarket

The vast and potentially profitable two-wheeler spares and service business is attracting the attention of Big Auto. Mahindra First Choice Services, part of the $19 billion Mahindra Group, is extending its four-wheeler spares business to include two-wheelers and will enter two-wheeler service business in six months to a year.
Mahindra First Choice Services to foray into two-wheeler spare parts aftermarket
CHENNAI: The vast and potentially profitable two-wheeler spares and service business is attracting the attention of Big Auto. Mahindra First Choice Services, part of the $19 billion Mahindra Group, is extending its four-wheeler spares business to include two-wheelers and will enter two-wheeler service business in six months to a year.
YVS Vijaykumar, CEO, Mahindra First Choice Services, said: “We source certain generic parts and supply these branded as MFC Spares through our 340 franchisee service network and 60 distributors that supply the parts to the open market bazaar network.
Currently we only handle four-wheelers but we are now foraying into the two-wheeler segment. We will supply all brands of vehicles but not high end motorcycles,” he added.
The overall marketsize for the aftermarket spares business is Rs 50,000 crore of which four-wheelers comprise 25%, three- wheelers 25% and the majority 50% comes from two-wheelers. Mahindra First Choice Spares is planning to increase its franchisee service network from 340 to 500 plus in one year and increase the distribution points in the bazaar network from 60 to 100.
“In future, we will also tie up with online e-commerce platforms as well as sell maintenance contracts, extended warranty, roadside service and retail spares through our own digital platform,” said Vijaykumar.
Mahindra First Choice Spares has seen its spares business grow 100% year-on-year for five years in a row and “we expect this growth to continue for another four to five years,” said Vijaykumar.
The aftermarket service business is attracting a lot of attention from big automobile groups with the likes of MyTVS and Greaves Auto Care pushing to organise what is now a largely unorganised but highly profitable business. The new corporate players are focusing on specialised services like home servicing or handling electric two-wheelers to differentiate themselves from the unorganised sector.
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