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Shriram Automall India Limited is on course to a strong 15-20 per cent growth this financial year over last year’s business volume of Rs 1750 crore it logged even though the market continues to pass through different cycles-strong in phases and relatively weak other times.
A wholly-owned subsidiary of Shriram Transport Finance Company, the company provides sale and disposal of pre-owned vehicles through a network of 55 automalls spread across the country.
After commissioning its 55th Automall in Nizamabad in Telangana, Sameer Malhotra, Chief Executive Officer of Shriram Automall, said, “The opening of the new automall incidentally coincided with the completion of three years of the automall in Hyderabad. As we celebrate this event, we are also in the process of constructing 10 more automalls, of them five are expected to be ready by the end of this financial year.”
Malhotra told Business Line, “The business is going in the right direction and the pre-owned market for commercial vehicles, passenger cars and two-wheelers is expected to get more organised as we go along. From about Rs 700 crore business we closed in 2012, it has gone up to Rs 1000 crore in 2013, Rs 1350 crore in 2014 and Rs 1750 crore in 2015. Of this, 50 per cent is accounted for by the commercial vehicle segment, followed by 20 per cent from passenger cars, and 10-15 per cent from tractors and 15 per cent from the construction equipment business.”
“All the pointers indicate that the organised market for pre-owned vehicles is set to grow as people seek a reliable and dependable platform to transact business. As a facilitator of different formats of sale of vehicles, including auctions, we not only attract individual customers, but fleet operators and even large companies with pre-owned business facilitating sale and purchase,” Malhotra explained.
The pre-owned market is expected to grow offering organised sector players like Shriram Automall, which is the biggest player in the country’s market today, a huge opportunity, he said.
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