Executive Summary

A pre-owned car or a second hand cars, is a car that has previously been used by one or more
owners. Used cars are sold through a variety of outlets, including franchises, independent car
dealers, rental car companies, leasing offices, auctions, and private party sales.

The Indian Pre-owned car market was dominated by unauthorized small-time brokers, and was
characterized by lack of transparency, disorganized and choice. The market for used cars already
equals the market for new ones, and it’s growing rapidly—but only about 10 percent of car sales
take place in the organized sector.

Mahindra First Choice Wheels came in existence with the idea that buying of a used car should be
as rewarding as buying a new car. Mahindra First Choice Wheels ltd. sets about to professionally
organize the pre-owned car industry in India so that customers can trust that they are getting a
quality vehicle. Mahindra First Choice Wheels Ltd is India's largest multi-brand pre-owned car
company which believes in selling high quality pre-owned cars to its customers with hassle free
documentation and car transfers. Mahindra First Choice Wheels has 125 outlets across 80 cities in
India. The company plans to expand this number to 300 outlets in the next three years. This
implies that customers will soon be able to choose from a wide range of certified pre-owned cars
throughout India, including the metros and tier-2 towns and cities.

The summer internship project entitled ―INDUSTRY ANALYSIS AND DEVELOPMENT

OF SUPPLY CHAIN FOR MAHINDRA FIRST CHOICE‖ is undertaken under the guidance
of Mr. Saahil Sharma, the company guide. The project included three assignments:
  First: - Role: Studying the industry of pre-owned car industry. o Methodology: survey,
this included visiting different dealers of pre-owned cars, both authorized and
unauthorized, as a dummy customer.
o Objective: To understand the pattern of price quotation, other services

provided by the dealers like warranty, servicing, finance and paperwork.

o Dated: this work was done in 11days i.e. from 05may to 15may.

 Second: - Role: Collecting procurement leads in Meerut and closing them.

- Methodology: I visited the market area in Meerut, talked to shop owners to
collect procurement leads.
- Objective: To prepare a database of prospective clients for procurement.

 Third: - Role: Collecting the contacts of drivers and garage owners in Meerut. -
Methodology: survey, visited garage, traveling agencies, taxi stands and residential areas.
- Objective: To prepare a database to generate procurement leads for future
use. - Dated: the second and third assignments were carried out
together in 45days, i.e. from 17may to 30june.

INDUSTRY SYNOPSIS
 Second hand or used cars are an integral part of the car market. People prefer purchasing a
second hand car because it proves to be more economical as compared to buying a brand new
car. The depreciation is lesser and car financing too can be obtained easily.

GLOBAL ASPECT –

In U.S. the used vehicle industry is more than double that of the new car market.
 An annual sale of pre-owned car in U.S. is nearly $370 billion.
 In 2005, about 44 million used cars were sold in the U.S.
 While nearly 17 million new cars sold every year.

The used vehicle market is larger than other large retail sectors, such as the school and office
products market ($206 billion in estimated annual sales) and the home improvement market
($291 billion in estimated annual sales).

Used car sales for 2010 were expected to be 36.7 million, according to information released by
TrueCars.com. The new car pricing website, which also closely monitors used car buying, said that
number tracks about 3.4% ahead of 2009's total of almost 35.5 million used cars.

Used car sales are only predicted to grow about 2.2% in 2011 to 37.5 million. That's not because
consumers will be buying less vehicles. It just means pent-up demand is going to be satisfied with
new car purchases.
GROWTH RATE OF USED CAR MARKET

38
37.5
37
 36.5
36 Series1
35.5
35
34.5
1 2 3

INDIAN ASPECT –

A used car can be much cheaper than its new counterpart.

 The demand for the used car market in India per year is 1.4 million cars.
 Only 10 per cent of the Indian used car market is organized.

organized used car market

automobile vendors
direct by owner
 Industry experts expect 50 per cent of the used cars sales to be brought under organized
car market over a period of 3 years.
 The second hand market in India today has certified used car outlets screened by car
makers.
 Some of the well known certified used car dealers in the Indian market are Maruti True
Value, Honda Auto Terrace, Ford Assured, Toyota U Trust, Hyundai Advantage, Mahindra
and Mahindra's First Choice.

SWOT ANALYSIS –

STRENGTH WEAKNESS
 Used car proves to be more economical as  Ownership of bigger

 Faith is increasing in market with entry of

authorized dealers.
 There are less number of owned workshops
 Question mark on originality of car parts

part of used car compared to buying a brand new car. market

is with unorganized dealers.

 Untrustworthy paperwork and documentation.

 OPPORTUNITY THREATS

 Used car sales are predicted to grow about  Rising small segment cars market.
2.2% in 2011.

 Increasing number of competitors

 Supply is less than demand.

 Increase in disposable income may possibly make people to purchase new cars instead used
cars.

COMPANY SYNOPSIS

MAHINDRA GROUP –
The Mahindra Group is a US $12.5 billion, Indian multinational conglomerate company
headquartered at Mahindra Towers in Mumbai, India. The group has more than 119,900
employees in over 100 countries across the globe.

Established in 1945, the Group has completed over 60 years of leadership. Initially set up to
manufacture general-purpose utility vehicles, Mahindra & Mahindra (M&M) was first known for
assembly of the iconic Jeep in India. The company later branched out into manufacture of light
commercial vehicles and agricultural tractors and rapidly grew from being a manufacturer of army
vehicles and tractors to an automobile major with a growing global appetite. The group now has a
presence in aerospace, agribusiness, aftermarket, automotive, components, construction
equipment, defense, energy, farm equipment, finance and insurance, industrial equipment,
information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers. It is
considered to be one of the most reputable Indian industrial houses with market leadership in
utility vehicles as well as tractors in India.
The group has following subsidiaries:
 Mahindra & Mahindra
 Mahindra Aerospace
 Mahindra Engineering Services
 Mahindra & Mahindra Financial Services Limited
 Mahindra Systech
 Tech Mahindra
 Mahindra Satyam
 Mahindra Lifespace Developers
 Mahindra Ugine Steel Company
Mahindra has recently entered the two-wheeler segment with the acquisition of the business
assets of Pune based Kinetic Motor Company Limited.

Mahindra & Mahindra groups added a new business vertical – ―After-Market Sector‖ for taking

care of growing population of vehicles in India (6 million cars currently, expected to grow to 17
million by 2015). The company realiased there is a vast untapped potential in the after-market
space covering multi-brand pre-owned vehicles, servicing and spares which support this business
ecosystem. This will create in the organized sector a business ecosystem which replicates the
existing ecosystem for new vehicles.

The Business Units in the After-Market Sector includes :

Mahindra First Choice Wheels Ltd. - This works in Sale & Purchase
of Pre-owned Cars.
 Service Chain
Mahindra Spares Business - This works in both Mahindra & non -
Mahindra spares .

Mahindra First Choice Services Ltd. - This works in Multi-brand

Mahindra First Choice Wheels:

Mahindra First Choice Wheels is the country’s preferred pre-owned car mart and is India’s only
organized multi-brand player. Currently Mahindra First Choice Ltd has 136 Stores and 10
superstores in 82 leading cities of the country.
The company plans to expand this number to 300 outlets in the next three years. This implies that
customers will soon be able to choose from a wide range of certified pre-owned cars throughout India,
including the metros and tier-2 towns and cities.

Mahindra First Choice Wheels Pre-owned Cars are retailed in all the leading cities like Mumbai,
Pune, Bangalore, Delhi, Chennai, Ahmedabad, Jammu, Gurgaon, Rewari,

Sirsa, Panchkula, Mohali, Jalandhar, Ludhiana, Amritsar, Hoshiarpur, Pathankot, Patiala, Noida, Agra,
Allahabad, Lucknow, Gorakhpur, Dehradun, Jaipur, Baroda, Porbander, Bhuj, Thane, Nasik, Ratnagiri,
Ahmednagar, Nagpur, Bhopal, Satna, Jabalpur, Raipur, Bhillai, Korba,
Raigarh, Bilaspur, Kolkata, Howrah, Siliguri, Asansol, Guwahati, Bhubaneswar, Cuttuck, Balasore,
Ranchi, Dhanbad, Patna, Mohania, Coimbatore, Hyderabad, Warangal, Karimnagar,

Cochin, Trivandrum, Perinthelmanna, Belgaum & many more cities.

 Mahindra First Choice Wheels Ltd. launched their 24x7 road
side assistance program in association with
MyTVS.

Mahindra First Choice Wheels Ltd is India’s multi - branded pre - owned car company that has
set a new target to sell around one lakh used cars by 2014 , stated by Ashesh Dhar, vice
president (operations).

Mahindra First Choice Wheels Propositions:

o Widest Choice - In line with its objective of providing a wide choice of cars to consumers,
Mahindra First Choice Wheels pioneered the concept of offering a wide range of cars
across brands and segments under one roof.
o Warranty - With the Mahindra First Choice certification, you can be .completely assured
of a hassle-free ownership experience. We understand that a maintenance cost is one of
the major causes of concern for a pre-owned car buyer. In order to provide you with the
ultimate peace of mind, Mahindra First Choice Wheels has pioneered the concept of
warranty on pre-owned cars. The warranty covers the car’s engine and transmission which
form the heart of your car.

o Transparency & Trust - Every certified vehicle sold by Mahindra First Choice Wheels
undergoes rigorous 118 points quality checks and comes with legitimate documentation.
Mahindra First Choice Wheels doesn’t sell flood or structural damage cars. The cars are
refurbished as per quality checks to give consistent performance.

 OTHER SERVICES
Other services available at a Mahindra First Choice Wheel’s stores include:

• Sell your old car to get a fabulous price and quick payment
• ―Park & Sell‖ option
• Finance on pre-owned cars
• Assistance for correctness and legal validation of document
• Insurance on pre-owned cars
 Supply & fitment of a wide range of car accessories.

SWOT ANALYSIS

STRENGTH WEAKNESS
 India’s multi-branded pre-owned car  The product and services offered are more company

costly than competitors.

 Has good reach with 136 stores and 10  Warranty terms not simple to understand super stores across 80

cities  Coverage area is less.

 The company offers RSA which gives it a  Weak certification process. competitive advantage

 Almost all outlets are owner driven which results in the presence of higher targets.

 Variety of services like RSA, warranty, RC, Finance and complete documentation.

THREATS

OPPORTUNITY

 Used car sales in 2010 grew by 20 and are  Increasing number of competitors. predicted to

grow about 15% in 2011in  Increasing disposable income may

India. lead customer to purchase new cars instead

 Working upon the servicing sector used cars.

would also results in better future  The coverage of unorganized market  Company

planning to increase number of in used car sector. outlets in India to 300 by 2012.

 There is possibility of opening of the superstore by the company in the near future which would prove
beneficial
 KEY EXECUTIVE

Mr. Anand G. Mahindra

Vice Chairman and Managing Director
Mahindra First Choice Wheels Ltd.

Mr. Anand G. Mahindra, Vice Chairman and Managing Director of Mahindra &
Mahindra Ltd. – one of India’s largest and most respected business houses - graduated from
Harvard College, Cambridge, Massachusetts, Magna cum Laude. In 1981 he secured an MBA
degree from the Harvard Business School, Boston, Massachusetts. He returned to India that year
and joined Mahindra Ugine Steel Company Ltd (MUSCO), the country’s foremost producer of
specialty steels, as Executive Assistant to the Finance Director. In 1989 he was appointed
President and Deputy Managing Director of the company.
During his stint at MUSCO, he initiated the Mahindra Group’s diversification into the new business
areas of real estate development and hospitality management.

In the summer of 1991, he was appointed Deputy Managing Director of Mahindra & Mahindra
Ltd., the country’s dominant producer of off-road vehicles and agricultural tractors. He has since
been engaged in a comprehensive change program in Mahindra & Mahindra Ltd. to make the
company an efficient and aggressive competitor in the new liberalized economic environment in
India.

In April 1997, he was appointed Managing Director of Mahindra & Mahindra Ltd and in January
2003 given the additional responsibility of Vice Chairman.
Mr. Mahindra was a co-promoter of Kotak Mahindra Finance Ltd., which in 2003 was converted
into a bank. Kotak Mahindra Bank is one of the foremost private sector banks today.

PROJECT

“INDUSTRY ANALYSIS AND DEVELOPMENT OF SUPPLY CHAIN OR

MAHINDRA FIRST CHOICE”

 Statement of Problem:
Mahindra first choice had opened an outlet in Meerut in January hence wanted to run
marketing activities and create a database of contacts for supporting the business in
future.

o Objectives of the project:

 To understand the working of After Market Sector for cars.

 To know how Mahindra First Choice operates in AFTER MARKET SECTOR for cars in
India.

 Industry analysis to understand difference in working of all organized and unorganized

players in pre-owned car market in India.

 The evaluation and procurement process in Mahindra First Choice.

 The criteria needed to meet to procure a used car.

 To learn how to develop a customer relationship, contacts and convince him/her to deal
with the company.

 To know the procedure followed by the customer to book the car and take delivery of the
car.

 Different terms and condition that customer needs to follow warranty norms.
 To prepare a pricing grid that tells the current pricing trend of used cars.

 To study the different kinds of media used by the Mahindra First Choice to increase the
business of its existing outlets. Such as

 Newspaper  Website
 Call centre
 Other promotion tools (banners, holdings, links etc.)

 To study the different tools used by the company to maintain proper records of the
procurement and sales by the outlets. Such as
 Sales tracker
 Buyer leads
 Methodology

The project was in two parts:

 First: o Problem definition: carry out industry analysis to understand difference in

working of all organized and unorganized players in pre-owned car market in India. Also
prepare a pricing grid.
o Methodology: survey, this included visiting and having personal interaction
with different dealers of pre-owned cars, both authorized and unauthorized, as
a dummy customer. o Research design: sample size – 18 unauthorized
showrooms and 14

authorized showrooms.
Location – Noida, Sahibabad, Ghaziabad, Meerut and Karol Bagh.

 Second:
- Problem definition: Collecting procurement leads in Meerut and closing
them.
-
Methodology: Personal interaction, I visited the various market areas in Meerut,
interviewed shop owners to collect procurement leads. - Location: Meerut

 Third: o Problem definition: Collecting the contacts of drivers and garage owners in

Meerut. o Methodology: Personal interaction, I visited garages, traveling agencies, taxi

stands and residential areas and interviewed them.

o Location: Meerut.
 FINDINGS:

All result is based on primary data collected by direct interaction. Because of being based on
primary data the findings are more helpful in knowing the genuine unbiased facts and figures.

o The survey I carried out for doing Industry analysis had a sample size of 18
unauthorized showrooms and 14 authorized showrooms and the locations where did
this survey are Noida, Sahibabad, Ghaziabad, Meerut and Karol Bagh.

 UNAUTHORIZED SHOWROOMS

SHOWROOMS LOCATIONS

Inaam motors Noida

Maruti motors Noida
Noida motors Noida

MSD Auto Plus Sahibabad

Kumar’s Car World Sahibabad

Om Motors Ghaziabad

Sunny motors Karol Bagh

RNZ Malhotra motors Karol Bagh

Shri Balaji Motors Kaiser ganj, Meerut

Metro Motors Kaiser ganj, Meerut
Guddu Motors Kaiser ganj, Meerut
Jeet Motors Kaiser ganj, Meerut
Baba Motors Kaiser ganj, Meerut
Mahima Motors Kaiser ganj, Meerut

Balaji Motors Mohan Puri, Meerut

JVG Motors Mohan Puri, Meerut
Vinayak Motors Mohan Puri, Meerut
Car Point Mohan Puri, Meerut
  AUTHORIZED SHOWROOMS

SHOWROOM LOCATIONS

Ford showroom: south city Ford Noida

I found various
Tata Motors Noida
attributes that
Maruti True value: Rohan MotorasLtd Noida
effect the
Volkswagen Noida Noida
brand image
Mahindra Koncept Automobiles Pvt. Ltd. Noida
of the
company and
Hyundai showroom Sahibabad
hence its
Mahindra First Choice: Shiva Motors Sahibabad
market.
Maruti True Value : Motorcraft Sahibabad
Following are
Honda showroom Sahibabad
the points that
affect the
Maruti True Value : Regent Autolinks Pvt. Ltd. Ghaziabad customer
Hyundai Showroom: Dream Hyundai Ghaziabad footfalls in
Mahindra Showroom Ghaziabad showrooms:

1. Services:
Maruti True Value sports complex, Meerut the offers and
Mahindra first choice sports complex, Meerut added services

offered by the showroom attract the customers to them and also retain them. These
services include:

 Warranty
  Finance
 Servicing
 Paperwork
 test-drive
discounts or gifts
2. Customer handling: the best way to retain as customer is to make him/her to feel that
he/she is special for you. This can be done by implementing following points:
 Asking for water/tea
 Follow ups

 Noting details
 Questionnaire
3. Sales executive skills: Sales executive is the person that interacts with the customer and
the representative of the showroom. Hence he require skills like:

o
Presentable
o Helping
o
Understand
ing
4. Location: the convenience in finding and reaching the showroom also decides the success
of the showroom business.

5. Infrastructure : this satisfies the esteem need of the customer of associated with as big
company.
 ANALYSIS:
Sales
executive Infrast-
SHOWROOMS SERVICES CUSTOMER HANDLING skills Location ructure Overa

Inaam motors * * 0 ** 0 *
Maruti motors * * * *** * *1/2
Noida motors ** * * *** * *1/2
MSD Auto *** ** ** *** *** ***
Plus
Kumar’s Car ** ** ** *** ** **
World
Om Motors * 0 0 * 0 ½
Sunny motors ** ** ** *** * **
RNZ Malhotra * 0 * ** 0 *
motors
Shri Balaji ** * * * * *
Motors
Metro Motors ** * * * * *
Guddu Motors ** * * * * *
Jeet Motors * * * * * *
Baba Motors * * * * * *
Mahima ** * * * * *
Motors
Balaji Motors * * * * *

JVG Motors * 0 * * * *
Vinayak * 0 * * * *
Motors
Car Point * 0 * * * *

Ford *** *** ** ** **** ***

showroom:
south city
Ford
Tata Motors, *** **** **** *** ***** ****
Noida
Maruti True
value: Rohan
Motor Ltd *** *** *** *** **** ***
Volkswagen *** **** ***** *** ***** ****
Noida
Mahindra
Koncept
Automobiles
Pvt. Ltd. *** ** ** *** **** ***
Hyundai *** ** ** ** *** ***
showroom
Mahindra
First Choice:
Shiva Motors *** *** *** **** ***** ****
Maruti True *** *** *** *** **** ***
Value :
Motorcraft
Honda ** **** * ***** ***** ***
showroom
Maruti True
Value : Regent
Autolinks Pvt.
Ltd. *** *** *** *** *** ***
Hyundai ** *** *** *** **** ***
Showroom:
Dream

Note: scale is 1-5 *.

 Overall Rating
Hyundai Showroom: Dream
Maruti True Value : Regent Autolinks Pvt. Ltd.
Honda showroom
Maruti True Value : Motorcraft
Mahindra First Choice: Shiva Motors
Hyundai showroom
Mahindra Koncept Automobiles Pvt. Ltd.
Volkswagen Noida
Maruti True value: Rohan Motor Ltd
Tata Motors, Noida
Ford showroom: south city Ford

Car Point
Vinayak Motors
JVG Motors
Balaji Motors
Overall
Mahima Motors
Baba Motors
Jeet Motors
Guddu Motors
Metro Motors
Shri Balaji Motors
RNZ Malhotra motors
Sunny motors
Om Motors
Kumar’s Car World
MSD Auto Plus
Noida motors
Maruti motors
Inaam motors

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

 Interpretation:
According to the ratings based on the survey, among the unauthorized dealers the MSD Auto Plus
is best in business because they follow an organized way of business. Following points are their
plus points: o They have their shop in galaxy mall in Sahibabad which gives it an advantage of
location.

o They also have large number of options ranging from small car to luxury cars.

o They also keep details of customer and follow up them to make sure that the
prospect gets converted into as deal.

o Most of the dealers not even take interest in taking the contact details of the
customers walking in.

o The sales persons in these shops don’t take interest in retaining the customer
and closing the deal.

Among the authorized dealers the Mahindra First Choice: Shiva Motors, Volkswagen Noida n Tata
Motors and Noida are the best. Following points are their plus points: o They have vast range of
cars ranging from small segment cars to luxury cars to SUVs.

o They provide services like finance, warranty, Warranty, Finance and Servicing.
o Genuine documents.

o Non-accidental car in best condition. o Keeps follow-up of their customers. o

Have good infrastructure.

o Sales executive attend their customers sincerely and follow the customers till the
deal closes.

PRICING GRID
 2010 2009 2008 2007 2006 2005 2004 2003
Maruti
Alto Lxi NA 1.90 1.80 1.65 1.50 1.40 1.30 1.20
Maruti
Wagon
R Lx 2.2 2.10 1.90 1.75 1.65 1.45 1.30 1.15 1
Maruti
Wagon
R Lxi 2.6 2.50 2.30 2.00 1.80/1.70 1.60 1.45 1.30 1
Maruti
zen Lxi NA NA NA NA 1.60 1.50 1.35 1.25 1
Maruti
Zen VXI NA NA NA NA NA 1.60 1.45 1.30 1
Maruti
Swift
Lxi 3.5 3.20 2.70 2.25 2.10 1.90 NA NA
Maruti
Swift
Vxi 3.6 3.30 3.00 2.70 2.25 2.10 NA NA
Maruti
Swift
Dzire
Vxi NA 4.00 3.80 NA NA NA NA NA
Maruti
Swift
Dzire
Ldi NA 4.35 3.85 NA NA NA NA NA
Maruti
Esteem
Lxi NA NA NA 1.90 1.60 1.40 1.25 1.05 0

1.95

Maruti
Esteem
Vxi NA NA NA 1.65 1.45 1.35 1.10 0
Hyundai
Santro
XE AC NA NA NA 1.40 1.30 1.20 1.10 0.00
Hyundai
Santro
GL NA 2.30 2.10 2.00 NA NA NA NA
Hyundai
i10 NA 3.10 2.85 2.50 NA NA NA NA
TATA
INDICA
DLG
TURBO NA NA 1.80 1.60 1.35 1.10 NA NA
TATA
INDIGO
LS NA NA 2.00 1.75 1.45 1.20 1.00 0.75
TATA
INDIGO
dicor lx NA NA 2.25 2.00 1.60 NA NA NA
TATA
SAFARI
LX 4/2 NA NA 3.75 3,30 3.00 2.40 2.00 1.50 1
TATA
PALIO
1.2
ELPS NA NA NA 1.60 1.25 0.95 0.75 0.50 0
HONDA
CITY
1.3
EXI/DX NA NA NA NA NA NA NA NA 1
HONDA
CITY
1.5
DX/EXI NA NA NA NA NA NA NA NA 1
HONDA
ACCORD
2.4 MT NA 12.5 NA NA NA 6.25 5.75 4.40 5

Note: the data is in lacks.

INTERPRETATION:
o Hence it is visible from the result of analysis that the rate of
depreciation in case of small segment cars is less than that in the
case of the luxury cars.

o The cars mostly in demand are Maruti Alto, Maruti Swift and
Hyundai Santro, Honda City.

 Basis of pricing
Pricing of the old car depends upon various factors like:

 Make and model of the car

 Mileage of the car

 Owner serial number

 Add-ons in the car

 Registration number of the car

 Demand of the model in the market

 Condition of the car
 Papers work

SECOND ASSIGNMENT:

After completing the first phase of the training, I was allotted the Mahindra
first choice showroom in Meerut for reporting and going through further
training. Here I was assigned new task for next part of the training that was
to generate procurement leads and collect contacts of the garage owners
and the drivers. I was guided by my industry mentor Mr. Saahil Sharma, Mr.
Neeraj Luthara and Mr.
Danish, the employee at showroom in Meerut.

PROJECT PROBLEM:

The objectives of this phase were:

o To understand the procurement process. o To know

the evaluation process of the car. o To collect contacts of
garage owners and drivers.
o To understand the criteria to match for procurement of
a car.

FINDINGS:
 EVALUATION PROCESS AT MAHINDRA FIRST CHOICE SHOWROOMS:

o After getting a procurement lead, a meeting is fixed with client.

Sometimes there are walking in the showrooms which are entertained

at same time.

o The Mahindra First Choice evaluator will check the documents first to start the process.

This includes the car’s registration book (RC), insurance policy, service manual, detail of

o Then h e will check external condition of the car that includes - paint and body for
accidental signs to check for previous body repair and frame or flood damage. Paint
and body for paint lines, overspray, body putty, dents and scratches.

loan or NOC hypothecation from any financial institution, identity proof & dealer invoice.

o Then he check Interior and exterior condition, mileage, age, ownership and accessories.

o Then the evaluator will take a test drive to check the technical & mechanical condition of
the car.
  The points the evaluator checks while evaluation process are:

o Type of tires
  Radial tires
 worn out
tires 
Ruptured
tire

o Type of structural damages

 Roof damages
 Fender damages
 Wind screen damage
 Identify scratches
1 box, 2 box and 3 box damages

o Identify rust parts in old cars

 Pillars
 Running board

o Type of paint defects

 st nd rd

 Shade change in the car paint

 Dark spots
 Paint breakage
 Pin holes
 Paint peel off

o Identify painted parts

  We can identify painted parts by tapping that area

o Identify gas kit

 CNG, LPG

o Type of engines
 Petrol engine
 Diesel engine
 CNG kit

 LPG kit

o AT/MT
 Automatic
Transmission  Manual
Transmission

o Engine compression problems

o Suspension problems

o Problems related cooling system

o Cover note and insurance papers

o NCB(No Claim Bonus) process

o How to identify accidental cars

 Spot welding
 Shocker ceiling

 After evaluation the evaluator will offer the best price, which will be

valid for 7 days.

 Now once person decide to sell his/her car to Mahindra First Choice

Wheels, concerned person will collect copies of all relevant

documents & process for payment. If car is hypothecated with finance
company, it can’t be sold until full loan amount is paid back & NOC
received.

 After completing the process of procurement of the car, Certification

of the used cars is done by an automobile engineer. The car normally

will be checked the on the parameters of 118 pre determined quality
checks.

 There are some norms decided by the company which every

showroom needs to follow. Some of the norms are as follows:

 o Mahindra First Choice does not deals in cars with 3rd owner or more. o The cars
must be non-accidental.

o Papers should be genuine and complete. o Company does not give any warranty
on the CNG or LPG fitted cars.

o For petrol engine cars which has ran over 70,000 and for diesel engine cars which
has ran over 65,000 the company does not gives warranty.

o Company will not provide warranty for the cars which have run more than 7 years.

o Certification of every car is necessary.

 Promotional activities by Mahindra First Choice:

In today’s scenario promotion through media is necessary to dominate any kind of market. A
Mahindra First Choice showroom promotes the sales in its area.

o To increase the sales company gives advertisement of its dealers every Sunday through
newspaper.
o Company also works on promotion by its website through which a user can access any of
the stock available in the showroom.
o Company also provides call centre leads to the different showrooms.
o Company also gives holdings, banners etc. to the showroom against the payment of the
fee they charge.

o The showr oom also installs Mahindra First Choice canopies in malls and other
important locations.

 Software used at Mahindra First Choice showrooms:

 There are two tools that are used at every showroom. These are following: o Sales tracker
sheet: Every executive has to fill up a record of sales made by him in the sales
tracker sheet provided by his outlet.

o Procurement tracker sheet: Every showroom has to maintain a Procurement

tracker sheet also known as Stock sheet. This contains the details of leads that
which lead were by field work, which was a walking, which was a reference etc.

o Loan calculator.

Conclusion
From the data collected by field work and the interpretation based on its
analysis, I make following conclusion:

o With the entry of the organized market in the used car segment the
customers have started to incline towards the used cars. The organized
market has given the customers a faith in dealing in this sector. But the
companies operating in organized market needs to open more

 services offered
 follow ups
 contacts
 workshop
showrooms to increase their reach in the markets as bigger market
share still lies with unorganized market.
 o The important factor affecting the business are:
 location of showroom o Even though the number of

unorganized shops is way more than that of organized shops the

business is not of that scale to match that of the organized shop because

of lack of transparency and quality of product.

Recommendation

o Organized showrooms have to increase the number of showrooms in order to

cover the more target customers.
o Unorganized dealers have to work upon their infrastructure and other services, in
order to stand the competition by organized sector and quality of product and
services.
o Mahindra First Choice needs to open more workshops in order to serve customer
in the better way. It would be beneficial for the area dealer in order to locate the
customer.
 o The showroom dealers should implement incentive and target system against the
sales made by the executives. In order to implement an aggressive marketing
strategy. Company needs to focus on this area too because it is a very crucial
factor as far as employee motivation is concerned.
o The pre- owned car market should implement a good marketing plan so that the
market share and business can be grown.

Limitations of the project

 Analysis done on the basis of the personal visits the showrooms available at
Noida, Sahibabad, Ghaziabad, Meerut and Karol Bagh hence the sample size is
limited to study so our project report revolves around that area only.

 Persons available at the dealers end don’t disclose the true facts.

 No technical tool used in our survey report as we were supposed to directly

interact with the executives as a dummy customer.
  Procurement training requires a considerable amount of time for us to
understand completely. But the time period for our procurement training during
our internship was not sufficient.
 We could not get access to the full data because we were not allowed to work
upon the dealership.

References

The following are the references which helped in the progress of my project
analysis:-

TEXTUAL REFERENCES
 Written notes provided by the company officials

 Brochure collected from different showroom  Data collected from different

workshops
 INTERNET REFERENCES
 Mahindrafirstchoice.com
 Google.com