Demand for used vehicles across segments – commercial vehicles, passenger cars, two- & three-wheelers and off-highway – has been constantly on the rise in India in the last few years. Set up in 2011 with the sole aim of tapping the potential of the pre-owned vehicles market, Shriram Automall (SAMIL) has proved to be a one-stop shop providing customers with comprehensive solutions which no other company has managed to deliver till today.
SAMIL has created a pan-India presence with more than 150 bidding locations and over 56 Automalls across the country. The company has been growing consistently since inception and expects a jump in turnover of around 30 per cent in FY16.
Talking to MOTORINDIA at the recently-concluded Auto Expo Motor Show in New Delhi, Mr. Sameer Malhotra, CEO, SAMIL, said: “We are in the concept business, so we need to keep going back to our users to understand their requirements better. Our aim in participating in Auto Expo was to explain to the vehicle manufacturers and dealers the exit route we provide to sell their used and end-of-life vehicles from their customers. The vehicle models which sell the most naturally have a better resale value, and this is an important aspect we are trying to educate our customers on. We are also trying to meet new people who could be potential partners and customers for our business.”
Focus areas
With the pre-owned vehicle market missing a proper organized platform until the birth of SAMIL, the company had started its operations by catering to the requirements of small fleet owners who had less than 10 vehicles, building its pan-India presence and brand value in the process. It is now aggressively focusing on large fleets with sizes as high as 100 to 300 trucks, owners of which usually go for mass replacement of vehicles at periodic intervals. “We are now looking to help manufacturers to sell their dealer stock and some R&D vehicles which generally include the older models. We are also working closely with finance companies and assisting them in clearing their stock”, added Mr. Malhotra.
With the concept of organized used vehicle sale picking up quite well, especially in and around important trucking hubs in the country, SAMIL has been strengthening its presence across India including States like Tamil Nadu, Andhra Pradesh and Telangana, while its sales have also picked up in States like Gujarat and Punjab.
Online trading is another aspect which is gaining prominence in the pre-owned vehicle field and is one on which SAMIL has been proactively working on. “We do online auctions (through bids.samil.in) as well and have a number of specialists in each segment. Last month (January) we sold over 10,000 vehicles through physical and online auctions”, he revealed.
Discussing the company’s plans for the coming fiscal, the CEO stated: “We will be more aggressive in the coming year with better plans and will try to get closer to buyers and sellers and focus on certain core areas. With 56 Automalls already functional we will be reaching 60 this year and are looking at opening 10 more by 2017 in unexplored areas. There are a lot of brokers in this business who will also be part of our focus in the coming year.”