Mahindra & Mahindra centralises after sales businesses under new vertical

28 April 2008

Automobile manufacturer Mahindra & Mahindra has created a new business vertical that consolidate all its after-market initiatives in the automotive space. The new business vertical, named "after-market sector" will consolidate M&M's multi-brand service chain Mahindra First Choice Services Ltd, its pre-owned vehicles business Mahindra First Choice Ltd and spares business and Mahindra Spares Business.

The group expects the rapidly growing automobiles market in the country of  six million cars currently that are expected to grow to 17 million by 2015 to open a new business segment in the organised sector in the country where it would like to have an early-mover advantage.

"With the growing population of vehicles in India there is vast untapped potential in the after-market space covering multi-brand pre-owned vehicles, servicing, spares, and the financial instruments and exchange platforms which support this value chain," said Anand Mahindra, vice chairman and managing director, Mahindra Group.

Mahindra also said the new business vertical would "create a business ecosystem in the organised sector, which replicates the ecosystem for new vehicles".

This new sector will be headed by Rajeev Dubey in addition to his current portfolio, who has been redesignated president (HR, after-market and corporate services) and member of the group management board, Mahindra & Mahindra Ltd. The CEOs of consolidated businesses will report to Dubey

"In India, the car servicing market mainly comprises authorised repairers and independent garages. Our market research has shown that car owners would prefer a service outlet such as ours with a value proposition built on trust, customer experience and convenience," says Dubey.