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    M&M to invest Rs 8 bn in used car business

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    Mahindra and Mahindra Ltd plans to invest around Rs 8 billion in its used car business, being done by Mahindra First Choice Services Ltd (MFCS) under the brand of CarXSpace, said , management board member.

    ‘In five years time, we will open around 300 outlets across the country,’ said Dubey.

    A subsidiary of the $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 in Chennai, Dubey said the turnover of MFCS will reach Rs 65 billion by 2015.

    MFCS may get into the e-commerce mode as well 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.