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Shriram Automall India Ltd (SAMIL) – a one-stop destination for pre-owned vehicles and equipment – is eyeing a near 20 per cent growth in turnover this fiscal.
Increased sale of passenger cars with commercial registration is likely to be the major contributor towards this growth.
Commercial vehicles, construction equipment ones, cars and SUVs, tractor and agriculture equipment and two and three wheelers are sold through it.
According to Sameer Malhotra, CEO, SAMIL, passenger car sales is likely to contribute around a fifth (or 20 per cent) of its total turnover this fiscal. The company reported a turnover of ₹1,700 crore last fiscal of which passenger car sales accounted for 15 per cent. Majority of sales (45-50 per cent) came from commercial vehicles.
“We are hopeful of clocking a 20 per cent growth in turnover this fiscal. Good growth is expected from sale of passenger cars with commercial registration,” he told reporters during a press conference.
Increased stockAccording to him, the company has seen an approximate 15-20 per cent increase in its stock, particularly, across categories such as tractors, light commercial vehicles and passenger cars. The passenger car stock alone has gone up by 20 per cent.
Shriram Automall acts a platform, i.e. it does not buy the vehicle for resale; but facilitates sale between the buyer and seller. It operates through auctions.
“Change in rules by State government and switch-over to CNG (from diesel) are two major reasons for increase in stock of passenger cars,” Malhotra said.
Expansion plansMeanwhile, SAMIL was looking to add around 10-12 auto-malls by the end of this fiscal. It currently has 52 such facilities operating across the country; and is looking to take that number up to 60-65 by March 2016.
While four of these auto-malls will come-up in the Eastern region – Patna (Bihar), Dhanbad and Bokaro in Jharkhand and Siliguri (West Bengal) – the remaining is expected to come up in Western and Southern India.
“We will look to have 60 auto-malls by FY-16. If possible, we might take the number up to 65 too,” Malhotra added.
Most of the auto-malls come up on leased space; while investments are mostly on creating awareness, marketing and training of personnel.
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