[dZired]

Mahindra has inaugurated a pre-owned sales outlet called Car Connect that will only be dealing in electric vehicles. It is located at HSR layout in Bangalore and will be operating under the group's First Choice pre-owned car sales vertical.

Mahindra First Choice Wheel Ltd (MFCWL) has also partnered with Mahindra Electric to offer an electric vehicle warranty package called ELEKTRICFIRST. This warranty package will cover various electric and electronic components of the car, including the battery, battery pack parts and the drivetrain. There are two warranty packages on offer with the pre-owned electric cars sold through this dealer - ELEKTRICFIRST and ELEKTRICFIRST+.

The electric cars will also be inspected and certified under Mahindra First Choice's used car evaluation. This, along with the aforementioned warranty packages, is expected to boost customer confidence while buying a pre-owned EV through Mahindra First Choice's organized platform.

Mahindra currently operates more than 1,200 used car sales outlets under the First Choice brand across the country. The company claims to have conducted over 10 lakh used car transactions in the past fiscal year (April 2016 - March 2017).

Link to Team-BHP News

[Mr.Boss]

To me "EV only" franchise looks suicidal.

- Overall sales volume of EV in India is only few thousands and the number of EVs that comes to used market is very few
- Since there is no reasonable upgrade (EV) available in India as of now, people don't sell a vehicle in good condition and most of the EVs in used market needs further investment (on battery or other stuff)

Leave the profit margin, I doubt if the franchise could recover the running cost by selling only EVs.

[i74js]

This is foresight, first they are not going to operate it just for EVs, one or two odd outlets are essentially to get the attention specifically in the cities where M&M is able to manage sales of EV.

A majority of EV sales happen in south. The Reva plant taken over by M&M is also based out of the same region thus any major repairs or typically refurbishment is relatively easy.

For other markets, it will be along side "First Choice".

No harm experimenting. I also see a possibility of selling new EVs alongside the refurbished one from dedicated outlet in near future.

[Rehaan]

Originally Posted by dZired

There are two warranty packages on offer with the pre-owned electric cars sold through this dealer - ELEKTRICFIRST and ELEKTRICFIRST+.

The warranty is critical to giving a pre-owned EV buyer peace of mind.

Any info on how long (months/years) this warranty covers?

Originally Posted by Mr.Boss

To me "EV only" franchise looks suicidal.

My initial thoughts too...

However, a few saving graces:
1) Company warranty being offered, especially on the battery (thought details still vague)
2) Located in Bangalore (any other city would be suicide)
3) Might help take that edge off the extremely high EV pricing and make it a more reasonable purchase


Also, from the pic it seems like this could very well just be a small area within an existing Mahindra FirstChoice dealership. If so, it's minimal investment, and worth a shot.

[GTO]

Interesting development. Would love to see how this pans out for the outlet. Couple of thoughts:

• The first outlet is an experiment & Mahindra will be closely watching the market's response. It'll be timid at best, but even if it brings a couple of curious customers in, that'll be cool. Keep expectations low.

• Note the location = Bangalore. That's also the city where most EVs are sold. In a way, it's a good option for existing E2O / Reva owners to sell their rides. Could work out better than a general car showroom where no potential EV owners would be walking in.

• From what I've seen so far, EVs have disastrous resale value because there's no demand for them. This could be Mahindra's attempt at controlling used E2O prices to an extent. Remember how, in the pre-internet era, Mercedes pretty much controlled the used car market & prices of its cars in India.

• The warranty is reassuring. One of the main (but not only) reasons for the E2O's failure was its ridiculous pricing. A used E2O with warranty for 3.xx lakhs could have a lot more buyers. Am seeing a yellow E2O with an asking price of 3.95 lakhs on their website. Can easily knock 50k off.

End of the day, Mahindra First Choice is doing so well that it can afford such experiments. Remember, the brand sells more used cars than some new car manufacturers!

Originally Posted by Mr.Boss

Leave the profit margin, I doubt if the franchise could recover the running cost by selling only EVs.

This experiment will surely be supported financially by the parent company.

[speedmiester]

My thoughts as an E2O owner which I just sold in the past week.

Originally Posted by GTO

• The first outlet is an experiment & Mahindra will be closely watching the market's response. It'll be timid at best, but even if it brings a couple of curious customers in, that'll be cool. Keep expectations low.

• Note the location = Bangalore. That's also the city where most EVs are sold. In a way, it's a good option for existing E2O / Reva owners to sell their rides. Could work out better than a general car showroom where no potential EV owners would be walking in.

This is good, but the price offered by Mahindra First Choice/Mahindra Dealers for their own products is pathetic to say the least. I got better offers on my own and I closed the deal within a week of posting on classifieds.

Originally Posted by GTO

• From what I've seen so far, EVs have disastrous resale value because there's no demand for them. This could be Mahindra's attempt at controlling used E2O prices to an extent. Remember how, in the pre-internet era, Mercedes pretty much controlled the used car market & prices of its cars in India.

I was also expecting ridiculous resale value for my car as mine was just 80KM range model with Battery Lease. I had driven 21500Kms in 30Months, but I got a decent deal and the buyer was willing to take over the Battery Lease which was well managed and facilitated by Mahindra Electric
Not sure how much value Mahindra First Choice will bring in as most owners with whom I had interacted will not be willing to sell to Mahindra First Choice because of their low prices they quote

Originally Posted by GTO

• The warranty is reassuring. One of the main (but not only) reasons for the E2O's failure was its ridiculous pricing. A used E2O with warranty for 3.xx lakhs could have a lot more buyers. Am seeing a yellow E2O with an asking price of 3.95 lakhs on their website. Can easily knock 50k off.

This will be the big pull, warranty. Most buyers are vary about the longevity of the E2O and this will put in some value and peace of mind for the buyers.