US Based Cox Automotive invests in Mahindra First Choice Wheels

Mahindra First Choice Wheels Ltd. (MFCWL), India’s No. 1 multi-brand certified used car company, has announced that Cox Automotive has made a strategic investment in MFCWL through a secondary purchase. Cox Automotive is a global leader providing digital marketing, classifieds, software, wholesale and eCommerce solutions to dealers, consumers, manufacturers and financial institutions. Its brands include Manheim, Autotrader, Kelley Blue Book, Dealertrack, vAuto, Xtime.

MFCWL is the leading pre-owned car retail and wholesale services provider in India. In addition to being the leading multi-brand pre-owned car franchise player, it is the leading provider of auction, inspections and pricing solutions in the Indian market. Its brands include Mahindra First Choice Wheels, Indian Blue Book, eDiig, and Autoinspekt.

Cox Automotive is a subsidiary of Atlanta based Cox Enterprises, Inc. (CEI). Founded in 1898 in Dayton, OH, CEI is one of the most respected privately held businesses in the United States. Its other major businesses include Cox Communications and Cox Media Group, both major players in the media and communications industries.

“We founded MFCWL as a startup with a vision to revolutionize the way that pre-owned cars are bought and sold in India. This strategic investment by Cox Automotive reflects the strong progress made by us over the last few years. We look forward to a long term partnership with them based on our shared values,” commented Anand Mahindra, Chairman, Mahindra Group.

 “We are delighted to have Cox Automotive make an investment in MFCWL. The fact that an entrepreunerial venture like MFCWL is attracting PE and strategic investments validates our belief that we at Mahindra have a flourishing entrepreunerial ecosystem creating real value”, said Mr. Rajeev Dubey, CEO, Aftermarket Sector, Group President, HR & Corporate Services and Member, Group Executive Board. .

MFCWL now has over 650 franchise outlets in 300 towns across India. Recently, it launched a commercial vehicle franchise business in addition to its industry leading multi-brand pre-owned passenger cars business. Over the last three years, it has pioneered the use of technology to deliver industry first solutions such as Indian Blue Book for pricing solutions and Autoinspekt  for inspection services.

With its portfolio of products and services, MFCWL is the only true ‘hybrid’ model in India and is uniquely positioned to organize every element of the used car value chain within the country.

“Our investment in Mahindra First Choice Wheels Ltd. furthers Cox Automotive’s strategic plans to create and grow used vehicle marketplaces,” said Joe Luppino, Chief Corporate Development Officer for Cox Automotive. “This opportunity allows us to partner with a company that has a reputation for delivering high-quality used car products and services to dealers and consumers in the fast-growing Indian automotive market.”

Commenting on the investment, Dr. Nagendra Palle, CEO and Managing Director, MFCWL said, “It’s heartening to see Cox Automotive enter India with MFCWL. We see deep synergy between the two organizations and aim to leverage their global presence and expertise to take MFCWL to the next level.”  HDFC and Phi Capital participated in the secondary sale.

Source: Mahindra First Choice Wheels Ltd