Shriram has tapped only a slice of a huge opportunity in CV segment: MD, STFC to ET

Friday, 1 December 2017

Shriram has tapped only a slice of a huge opportunity in CV segment: MD, STFC to ET

With the growing demand of commercial vehicles in India, we can consider that commercial vehicles (CV) play quite a vital role in growth of Indian Economy. After slightly tepid Q1, the commercial vehicle industry has seen a continuous growth.

Where overall sales at 151,837 units in Q1 (April-June 2017) were down 9.08 % year on year (YoY), the commercial vehicle (CV) sector has recorded a sharp recovery in July driven by an uptick in the critical medium and heavy commercial vehicle (M&HCV) segment, pent-up by demand post-GST and healthy replacement-led demand. As a result it is expected that overall Commercial Vehicle industry will find its momentum back where M & HCVs truck segment will grow by 6-7%, the LCVs by 7-8% and buses by 7-9%.

According to Umesh Revankar (MD, STFC), two factors that are boosting the demand for commercial vehicles in the country are the rural demand and e-commerce activity. Having good monsoon has helped rural India a lot as this year kharif crops output was quite good. Thereby that is the main activity from where the demand is coming. Rural demand is basically for used vehicle and probably smaller vehicles, LCVs, resulting in sustainable increase in LCV sales.

E-commerce activity is redistribution of goods within a city or outside of it or to individual requirement. This is another segment driving LCVs and smaller vehicles. Apart from that, construction activities are doing quite good in the country resulting in good demand related to construction vehicles.

Umesh Revankar to Economic Times (ET): “There is huge opportunity for us to cover other geographies where we have not covered. We are very strong in the south and to some extent in the west, but in north, east and central India, we are not very strong. By adding more to the network, we can increase our lending. I feel there is huge opportunity. The other lending happening earlier by money lenders or local financiers is slowly becoming more and more organized. So, demand for us, especially for used vehicles, is going up month on month.”

“With 2017, turning out to be the most challenging year for automotive industry, Shriram Automall India Limited(SAMIL) The No.1 used vehicle and equipment transaction platform in the country has stood strong. Now company with its already existing 72 Automalls, look forward to expand its reach further, so that every used vehicle and equipment requirement in the country could be fulfilled in the most organized and transparent manner.” Sameer Malhotra (CEO, Shriram Automall)

If you are looking to acquire or dispose used vehicle and equipment of any make and model, SAMIL is the OneStop destination for you. Visit your nearby Automall or view the inventory company has to offer from the comfort of your home by visiting www.samil.in or downloading MySAMIL Mobile App.