Now Mahindra Group enters the second hand car market

Now Mahindra Group enters the second hand car market

Maruti Suzuki is doing it already. Hyundai India and Ford India has announced their plans to enter into it. And now Mahindra Group has announced their plans to enter the used car market.

Mahindra Group has confirmed that they want to leverage its rural network to become the first organized player in the rural used car market. interestingly, the market for second hand cars is as big as $2 billion in India and many automotive companies are realizing the potential it holds for them.

Hyundai Motors has already announced their plan to setup a new subsidiary to drive into this booming segment; Ford India is reviving their existing unit, which manages their second hand car sales market.

Mahindra & Mahindra would be taking a different approach to this market by becoming the first organized player in rural sector using its 300-branch strong credit delivery channel. Ramesh Iyer, MD, Mahindra Finance said about this new initiative of the company: “The biggest opportunity today is second hand car financing. There are no organized players in the rural sector. One of the reasons is that life of vehicle is stretched to 5-7 years.”

He further added: “If somebody can give second hand vehicle financing, it will bring down used life of new vehicle.”