Archive · 25 Nov 2025
TS Mahalingam & Sons Resists Digital Disruption
TS Mahalingam & Sons, a 90-year-old used car dealer in Chennai, is holding its own against new digital competitors.
Even though online platforms have taken about 25% of the market, TSM is doing well by focusing on selling fewer but better cars.
They sell around 200 cars a month, with a profit margin of just 4-5%.
They also help customers get car loans worth ₹200 crore every year.
People are buying more automatic cars, but electric vehicles (EVs) are having trouble because their prices drop a lot when resold.
A big reason for this is the recent cut in GST, which made new cars cheaper and affected the price of used cars.
TSM is adjusting by lowering their prices too.
TS Mahalingam & Sons (TSM) maintains relevance despite 25% market share loss to digital platforms.
TSM focuses on quality over volume, selling 200 cars monthly with a 4-5% profit margin.
Demand for automatic vehicles in the ₹5-8 lakh range is increasing, with 10-15% of TSM's inventory being automatic.
Resale value of electric vehicles (EVs) is low due to battery replacement issues and price drops.
GST rate cuts on new cars have reduced used car prices, impacting TSM's inventory.
- Who
- TS Mahalingam & Sons (TSM), a 90-year-old used car dealer in Chennai, India
- What
- TSM is maintaining its market position despite competition from digital used car platforms
- When
- The challenges and strategies discussed are relevant as of November 25, 2025
- Where
- Chennai, India
- Why
- TSM focuses on quality, brand recall, and a strong bottom line rather than volume
- Company
- TS Mahalingam & Sons (TSM)
- Founded
- 1935
- Location
- Chennai, India
- Annual Sales
- 3,000 cars
- Annual Revenue
- ₹100 crore
- Car Loans Distributed
- ₹200 crore
- Customer Base
- 200,000+ customers
- Profit Margin
- 4-5%