Shriram Transport Finance Company (STFC) has entered the second hand truck finance market through its new subsidiary Automall.
“We want to create the replacement demand for new vehicles and address the vacuum of financing in the pre-owned truck financing,” R Sridhar, managing director, STFC, told reporters.
The new initiative, launched here on Saturday by Pongalur N Palanisamy, state rural industries & animal husbandry minister, will extend finance to truck owners for replacing their old vehicle.
The average age of a truck, at present, is 10-11 years in India, as compared with 5-6 years in developed countries. The industry is estimated to be around Rs 1 lakh crore here.
“We have a great potential in this space,” he said.
Sridhar said they were also in talks with other companies to offer warranty on engines and gear box.
On the occasion, the company also launched Shriram One Stop, a touch-screen kiosk that provides information on used commercial vehicles available for sale.
It plans to set up similar kiosks at all its 482 branches in a phased manner. Under this, old trucks of all makes will be acquired from the market, refurbished and sold under the brand —Shriram Newlook.
The company is also planning to join hands with a non-governmental organisation to train school dropouts in driving LCVs. “The programme will be funded by STFC. We will also help them in getting driving licence,” he said.