Pre-owned CV and CE industry in India is likely to grow at 15-20 per cent for the next five years.- Sameer Malhotra, CEO, Shriram Automall
 After three years of sluggish growth due to economic slump, the pre-owned CV and CE industry is on growth path again to gather momentum, says Shriram Automall’s CEO Sameer Malhotra. Shriram Automall is a major exchange platform for pre-owned vehicles and CE. Interview excerpts:

Could you brief us on the market potential for pre-owned commercial vehicles (CV) and construction equipment (CE) in India?
(Market) potential of both pre-owned CV and CE has always been good in India. Although sales of new CVs and equipment were in lower side during last couple of years due to slower economy and many stalled projects but pre-owned vehicles and equipment were able to maintain the momentum due to its price advantage and emergence of organised players like us.

As per the industry trend, the sale of used vehicle or equipment in India is standing at par with the sale of new vehicle or equipment. Thus, over 6 lakh pre-owned CVs  and around 40,000 used CE were sold in FY 2014-15 in India. However, pre-owned market is highly unorganised. As major player in the pre-owned automobile industry, we have been playing a significant role to organise the market.  Pre-owned CV and CE industry in India is likely to grow at 15-20 per cent for the next five years.

What is the current market status?
After three years of sluggish growth due to economic slump, the pre-owned CV and CE industry is on growth path again to gather momentum. Coming out of three years of de-growth, the industry is stabilising this year to gather momentum over the next two years, thanks to reforms and policy measures in the infrastructure sector.

Initiatives of the new (central) government have made the macro parameters favourable to the industry. With the economy reviving and inflation under control, some reforms such as opening up the insurance and defence sectors for more FDI (foreign direct investment) will lead to more infrastructure projects requiring equipment in India.

The recent union budget was also majorly focused towards the reviving the infrastructure of the country and have also allotted a huge budget aside for construction of new roads and highways in the country.
With the new CV and CE market now on track Shriram Automall also expects to increase its sales as even in the sluggish economic time the demand for the used equipment were rock solid. Now with these new measures we are hopeful to have good years coming in terms of demand.

What are the services you offer to your customers?
Shriram Automall is India’s No. 1 platform for exchange of used vehicles and equipment. It provides four unique bidding platforms, being Physical bidding – a one-of-its-kind facility where ramping of vehicles is done for their disposal. Vehicles and equipment are ramped during the bidding event, the event manager (auctioneer) and bid catcher makes the event very interesting and unique. Online bidding (bids.samil.in), one-stop classified kiosk and private treaty.

We take pride in deriving a customer-base of 50 lakhs through Shriram Group, the only company to offer 24×7 secured parking facility. Currently, it conducts more than 200 physical bidding events every month across India. Our presence at every nook and corner of the country with our more than 150 bidding locations including over 57 well-structured Automalls. We cater to all segments of the industry that includes CVs, CE, cars, 2- and 3-wheeler, and tractors and provide our professional services to banks, NBFCs, dealer, fleet owners, individuals etc.

How do you facilitate the selling-buying process?
At Shriram Automall customer can buy or sell used vehicle and equipment through its unique bidding platforms. Physical bidding – a one-of-its-kind facility where ramping of vehicles is done for their disposal. Vehicles and equipment are ramped during the bidding event, the event manager (auctioneer) and bid catcher makes the event very interesting and unique. Customers have an added advantage of physically inspecting the vehicles on or two days before the event. Online bidding (bids.samil.in), one-stop classified kiosk with detailed information of over 4,000 used vehicles and equipment and private treaty, through which customers acquire and dispose pre-owned vehicles and equipment.

How do you arrange the finance?
Shriram Automall is the 100 per cent subsidiary of Shriram Transport Company which is India’s largest Small Business Finance Company (SBFC). Our customers have an option to get their purchased vehicles and equipment financed through STFC with minimum documentation and attractive interest rates.

Discuss about your target customers for CE and mining segment.
At Shriram Automall, CE is one of the largest business contributors, where we have conducted over 20,000 successful transactions and offer wide range of backhoe loaders, excavators, and cranes etc. Our target customers are all major construction business owners, CE rental service provider, vehicles and equipment aggregators.

Could you tell us about your business network?
Shriram Automall is largest exchange platform for pre-owned vehicles and CE in India. The company operates through more than 150 locations which includes 57 well structured Automalls ranging from National Highways to even remotest corner of the country.

Shriram Automall has served over 3 lakhs satisfied customers in a short period of just 5 years. We have the industry renowned names in our clientele including nationalised and private banks, OEMs, transporters, non banking finance companies, large fleet operators, vehicle aggregators, intermediaries, contractors, dealerships and individuals.