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To beat the slowdown in the heavy vehicles segment, Shriram Transport Finance Company is looking to provide loans to a new segment — buying used cars.
The company, which mainly gives loans for purchasing of heavy/commercial vehicles, plans to finance purchase of about 2,000 second-hand private cars every month, according to Umesh Revankar, Managing Director and CEO of the non-banking financing company.
“We are now getting into the used-car segment…Those who have two-wheelers are going for cars now. There is good demand, and there is some vacuum in this segment,” Revankar told Business Line .
We want to fill the vacuum without compromising on yields. We want to target those buying vehicles for the first time, he said.
The NBFC is not looking at any tie-up and will market the business through Shriram Automall. The automall is a transaction platform for the business of second-hand cars, bikes, autos, commercial vehicles and agricultural/construction equipment.
According to Revankar, the total cars sold in a year is about 20-25 lakh, of which, 10-15 per cent is passenger vehicles and the rest (about 17-19 lakh), private cars.
“Though the overall volumes will be low for this year, the company will scale this up next fiscal,” Revankar said.
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