Sells over 1,50,000 used vehicles & equipment in FY18
As a premier service provider in the used vehicles market, Shriram Automall India Ltd. (SAMIL) has conducted over 8,300 physical and online bidding events in 2017-18, transacting over 1,50,000 vehicles across the country. With new partnerships and initiatives, it wants to establish itself as the largest marketplace for exchange of pre-owned vehicles and equipment this year.
Simplistic ideas can transform the world. What started as a simple-minded, innovative idea led to the establishment of a company seven years ago, and now it has absolutely transformed the way pre-owned vehicles and equipment are dealt in India. It has perhaps provided the industry with an organized and easy approach and has created a new demand appetite for used vehicles in the market. The case in point is SAMIL, the country’s largest physical and online platform for exchange of used passenger vehicles, commercial vehicles and construction equipment.
SAMIL has just celebrated its seventh anniversary on February 26 last. Earlier that month, the company also took part in the 14th edition of Auto Expo Motor Show at Greater Noida for the third consecutive time. Timing couldn’t be any better, as SAMIL in 2017-18 has registered strong business performance with a growth of over 30 per cent in terms of revenue, backed by a record 8,300+ bidding events (online and physical) disposing 1,50,000+ used vehicles & equipment with a transaction value of over Rs. 2,300 crores.
Commenting on the new developments, the CEO, Mr. Sameer Malhotra, said: “Since day one we have aimed to provide the best solutions and services to the customers, while also setting new benchmarks and records in the industry. We have made pre-owned vehicles fancier and reliable in India across the segments, by offering convenient and transparent platforms for bidding and transactions”.
Strong business
Asked about the performance of the pre-owned vehicle industry last year, he replied that the industry has never witnessed the fastest pace of expansion as in 2017. “It was a fantastic year for us, with handling volumes and profitability registering a phenomenal rise”.
But, with the new vehicle market struck in a series of hurdles, including demonetization, BS-IV regulation and GST, wasn’t there any impact on the used market?
Mr. Sameer explained: “Since demonetization tightened the market, people sought more liquidity by consolidating their assets. More vehicles entered the used market, which was well absorbed by the existing demand for used vehicles, especially after the BS-VI price hike and shortage of new vehicles. GST wasn’t a big problem for us as previously we were hit by the service tax.”
How did Auto Expo turn out for SAMIL? The company extended the experience of physical bidding to its customers along with showcasing its professional online bidding at the show. “There is no better platform than the Auto Expo for us to display our offerings as India’s largest offline and online vehicles transaction platform. The response from our target audience was exemplary this year. We educated over 5,000 people about our unique vehicle transaction platforms during the expo”, observed the CEO.
Shriram Automall caters to a wide array of clients, including retail sellers and buyers, manufacturers, dealers, banks, NBFCs and leasing companies.
The company’s bidding platforms and allied services, including parking, inspection, finance valuation and refurbishment, come in handy for a number of automakers and dealers to efficiently manage their trade-in stock across the nation. “The online platform and One-Stop classified listings have enabled us to serve a new range of customers who are digitally active, pushing our business to the next level. Our ‘MYSAMIL’ mobile app is also freshened up now with the ‘SAMIL E-Wallet’ feature, so that participants from anywhere in the world can take part in live bidding and view inventories”, Mr. Sameer Malhotra disclosed.
Differentiated focus on commercial vehicles
Further, as a part of its 7th anniversary, SAMIL conducted 70+ bidding events across the country making it the first-ever company to organize such a large-scale event in a single day. It displayed over 10,000 cars, trucks and equipment valuing over Rs. 150 crores for disposal, a record-breaking feat for a single-day business transaction, with over 8,000 people from Tier 1, 2 and 3 cities participating in the events.
Asked about the significance of CVs in SAMIL’s business, it was revealed that trucks and buses account for more than 50 per cent of the total volume sales in its platforms. More so in the recent times, with long-distance haulage and heavy-duty trucks selling more.
Acknowledging the CV boom in the market, Mr. Malhotra said that his company is working on a differentiated approach to tap the market. “With the 20-year-old vehicle scrappage policy likely to come into force in 2020, the industry is at the cusp of transformation. All-out thinking right now is on tailor-making and improving our service delivery for the fleets and trucking community. Offering more value to our trucking customers is our prime focus”, he added.
Going forward in FY 2018-19, together with its sister firms Shriram Transport Finance Company Ltd. (STFC) and CarTrade Exchange, Shriram Automall is getting ready to offer new and innovative technological enhancements to its customers for bidding online and inspection facility through its 100 per cent subsidiary Addroit Inspection Services Pvt. Ltd. The new partnership aims to hold over 70 per cent market share and expect to conduct transactions worth over Rs. 4,000 crores in the coming year, with a combined customer base of over 20 million.