Chip crunch driving used-vehicle sales, Shriram Automall revenues up 52%

Firm says pre-Covid level of sales achieved and that pre-owned vehicles are no longer a second choice

Pre-owned vehicle exchange platform Shriram Automall India (Samil) has said that India’s used car sales have touched the pre-Covid level and that supply constraints such as the chronic shortage of semiconductors--a key input in new vehicles--are helping the market. From April to August this financial year, the company saw a 52 per cent increase in revenue to Rs 1,304 crore through transactions of 78,482 vehicles.

During the same period in 2021-22, Samil generated business worth Rs 859 crore and transacted 50,748 vehicles. “Pre-owned vehicles are no longer a second choice. Our numbers are equal to the new vehicle market. We are seeing a growth trajectory in cars, trucks and tractors. Supply constraints in new vehicles like the semiconductor crisis also helped the pre-owned industry,” said Sameer Malhotra, director and chief executive officer of Samil.

During FY22, the company logged business worth Rs 5,800 crore through 237,667 transactions. Malhotra said the segment has reached pre-Covid levels and the company is planning to increase its national footprint from 100 cities to 200 within a year. “From around 17,000 conversions a month during the last financial year, we are now doing 20,000 per month,” Malhotra added.

Early this year, the company had inked a deal with IIT Delhi’s Yardi School of Artificial Intelligence to improve its in-house developed pre-owned vehicle valuation platform ThePriceX. “We are looking at new modes like phygital auctions with a mission of one India and one market. We are betting big on corporate customers and also expanding into the retail segment as well,” Malhotra added.