How To Start A Mahindra First Choice Franchise In India In 2024?

on Jan 16, 2024 | 2903 views

Written By: Shruti Agrawal

With the changing times and growing awareness regarding saving money, environment, and at the same time having the urge of owning a car of your wish at a much lesser cost. Here comes the franchise opportunities which allow you to make your dream come true of owning a car which does not cost you a fortune and also regulate the fleet of cars on the roads, by marking their presence in nooks and corners of the country and one such franchise is Mahindra First Choice Franchise opportunities.

Mahindra First Choice Franchise Brand Model

Mahindra was established as a steel trading company in 1945, then in 1947 it entered in automotive manufacturing. The company has expanded its business verticals, including the after-market sector for multi-brand used vehicles, servicing, and spares.

In 2008, Mahindra ventured into the used-car space with Mahindra First Choice (MFC) to meet the rising demand from a growing segment of car owners.

Mahindra First Choice Wheels has attracted funding from Valiant Capital, Indian private equity firm Phi Capital, and Cox Automotive, a USD 7 Billion pre-owned auto-tech player in the USA.

Mahindra First Choice Franchise Cost

Mahindra First Choice Wheels is India's leading used auto platform business, aggregating demand and supply for used cars.

It is part of the USD 20.7 billion Mahindra Group and operates over 1700 stores in 810+ cities. The company plans to expand its network to 1800 franchisee stores across India by 2024.

To open a Mahindra First Choice franchise, you would need to consider the following cost aspects:

  1. Investment: The investment required for different types of franchises varies. For instance, a Two-Wheeler Franchise requires an initial investment of INR 16 lakh to INR 21 lakh, while a Mahindra First Choice Services Franchise requires an initial investment of INR 60 lakh to INR 1.5 crores
  2. Franchise/Brand Fee: The franchise/brand fee for a Mahindra First Choice Services Franchise is around INR 6 lakhs.
  3. Royalty/Commission: The company charges a royalty fee of 10%.
  4. Working Capital: The working capital investment for a Mahindra First Choice franchise is around INR 20 to 50 lakhs, with the total miscellaneous costs and premise area requirements taken into account.
  5. Return on Investment: The expected return rate on investment is 40% in tier 1 cities and 30% in other cities. The break-even period is estimated to be between 1 to 2 years, depending on the city and location.

Mahindra First Choice Franchise Requirements

To open a Mahindra First Choice franchise, several requirements and guidelines must be followed. Some of the key requirements include:

  1. Investment: The working capital investment for a Mahindra First Choice franchise ranges from INR 20 to 50 lakhs, with a recommended investment of INR 30 to 50 lakhs, including a premise area of 500 to 1000 square feet and parking space for 15-20 vehicles.
  2. Training and Support: Mahindra First Choice provides detailed and efficient franchise training and support programs for franchisee owners and staff. All franchisee owners must complete these programs.
  3. Brand Recognition: Mahindra is a well-known automobile brand in India, and Mahindra First Choice is the country's number one multibrand-certified used car dealership.
  4. Certified Cars: All certified cars have the Certifirst advantage, and customers can have the option of Warrantyfirst.
  5. Store Layout and Interiors: Franchisees must maintain company guidelines for store layout, interiors, payment collection, and processing, as well as sale agreements.
  6. Authorized Service Center: To open a new authorized service centre for automobiles and get a franchise, Mahindra First Choice requires a one-time investment of INR 60 lakh to 1.15 crore and a minimum carpet area of 3500-4500 sq. ft.

Mahindra First Choice Franchise Benefits

Investing in a Mahindra First Choice brand franchise offers several benefits, including:

Trust and Confidence: Mahindra First Choice is a well-known and reputable brand in the Indian automotive industry, which instils trust and confidence in the minds of customers.

  • Wide Reach: Mahindra First Choice has a large and growing network of over 500 outlets in 270+ cities in India, making it one of the most extensive used car retailing networks in the country.
  • Certified Cars: All cars at Mahindra First Choice are certified, ensuring quality and reliability for customers.
  • WarrantyFirst: Franchisees offer WarrantyFirst, the best-used car warranty, providing additional peace of mind for customers.
  • Easy Access: Dealers have easy access to car enquiries (phone, SMS, web) in their area for both buying and selling used cars.
  • Regular Training Programs: Mahindra First Choice provides regular training programs for dealership staff to offer better service and maintain quality standards.
  • Strong Industry Presence: Mahindra First Choice is a significant player in the Indian automotive industry, with a group annual sales turnover of over INR 1800 crores.
  • Transparency: The company is known for its transparency in selling and buying processes, which is a major advantage over competitors.
  • Quality Service: Mahindra First Choice franchise is popular among customers for its quality service, trust, and transparency in selling and buying processes.

Market Trends of Second-Hand Car Selling Franchise Business In India

According to a report by Custom Market Insights, the Indian used car market is expected to record a CAGR of 17.60% from 2023 to 2032, with the market size projected to reach a valuation of USD 43.05 billion in 2023.

The Indian used car market size stood at USD 23,355.3 million in 2021 and is expected to grow at a CAGR of 17.50% during 2021–2030, reaching USD 99,707 million by 2030.

The growth is attributed to factors such as increasing disposable incomes, rising demand for personal transportation, the emergence of online marketplaces, and the availability of financing options.

The increasing focus of automakers towards setting up used car networks and the growing inclination towards owning a car is also driving the growth of the used car market in India.

Reasons Why Second-Hand Car Business Franchise is Worth Considering

  • The shift in consumer behaviour towards sustainability and cost-effectiveness has increased the demand for quality used cars.
  • Compared to starting a new car dealership, entering the second-hand car market through a franchise often involves lower initial investment and reduced operational overheads.
  • Beyond selling cars, franchises often offer ancillary services like financing, warranties, insurance, and aftermarket products. This diversification of revenue streams enhances profitability beyond just vehicle sales.
  • Innovative franchises leverage technology for inventory management, customer relationship management (CRM), online sales platforms, and even virtual vehicle tours. This tech integration enhances customer experience and operational efficiency.
  • Franchises in this sector can specialize in specific vehicle types, catering to niche markets such as electric cars, vintage models, or luxury pre-owned vehicles. This adaptability allows for creative targeting of different customer segments.
  • Positioning a second-hand car business as environmentally friendly aligns with the growing concern for sustainability. Promoting the reuse of vehicles reduces the carbon footprint associated with manufacturing new cars.
  • Transparency in vehicle history, thorough inspections, and offering warranties build trust with customers. A franchise can innovate by implementing unique verification processes or certifications, enhancing trust further.

Other Brands That Avail The Second Hand Car Business Franchise

Maruti Suzuki True Value Franchise

Maruti Suzuki True Value is a well-established pre-owned car brand with over 560 outlets across more than 281 cities in India.

  • The cost of a Maruti Suzuki True Value franchise typically ranges from INR 30 to 50 lakhs.
  • The franchise model may involve a dealer investment ranging from INR 50,000 to 2 lakhs.

In essence, second-hand car-selling franchises encapsulate more than commerce; they signify a transformative shift in the automotive paradigm.

Their viability lies not just in the sale of cars but in their dedication to environmental consciousness, customer-centric approaches, and the quest for a sustainable, efficient, and responsible future in the automotive domain.


Q.1. Do I need prior experience in the automotive industry to own a Mahindra First Choice franchise?

Though prior experience in the automotive industry is good to have, it is not a strict requirement. Mahindra First Choice often provides training and support to franchisees to help them manage their business effectively.

Q.2. Can I convert my existing car dealership into a Mahindra First Choice franchise?

Yes, Mahindra First Choice provides opportunities for existing dealerships to convert to their franchise model. The process involves meeting certain criteria and adhering to Mahindra First Choice's standards and guidelines.

Q.3. How can I become a Mahindra First Choice franchise owner?

To become a franchise owner, you typically need to contact the Mahindra First Choice team through their official website or directly get in touch with their franchise department. They often have specific requirements and procedures for franchise ownership.

To learn further about the franchise opportunity and want to try your hand at Second Hand Car Business Franchise, you must visit the FranchiseBAZAR and ask for expertise to help you realise what is best suited for you. Hurry Up. Don't miss your chance.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.

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