Demand for used vehicles seeing strong recovery: Malhotra
Pre-owned vehicle exchange platform Shriram Automall India Ltd. (SAMIL) generated business worth more than ₹3,000 crore and transacted more than 1.60 lakh pre-owned vehicles and equipment during FY21.
SAMIL is a part of Shriram Transport Finance Co. Ltd. and MXC Solutions India Pvt. Ltd.
“We have been seeing very strong recovery trends in the demand for used vehicles and equipment with price realisation getting better, especially towards the end of Q4,” said Sameer Malhotra, director and CEO.
“Over 130 crore [worth of] transactions were done in a single-day event. Even March has been phenomenal and we did over ₹500 crore of transactions, which was overwhelming,” he added.
Selling price increases
During FY21, the average selling price of a used-vehicle lot increased by 10% compared with the previous fiscal, the company said in a statement. Over eight lakh pre-owned vehicles and equipment were tagged, including trucks, cars, two-wheelers, three-wheelers, agricultural tractors and construction equipment from SAMIL’s clientele.
The clients included banks, non-banking financial companies, insurance companies, original equipment manufacturers and their dealerships, vehicle aggregators, rental and leasing companies, transporters, contractors, dealers and even individuals.
More than 2.26 lakh customers from over 400 cities registered at SAMIL or on the online platform. About 80% of the business was generated in non-metro cities.
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