Chip crackle boosts used vehicle sales, Shriram Automall’s revenue rises 52%
Used vehicle exchange platform Shriram Automall India (Samil) said used car sales in India had reached pre-Covid levels and supply constraints such as chronic shortage semiconductors – a key input in new vehicles – were helping the market. From April to August this financial year, the company recorded a 52% increase in revenue to Rs 1,304 crore from transactions of 78,482 vehicles.
During the same period in 2021-22, Samil generated business worth Rs 859 crore and processed 50,748 vehicles. “Used vehicles are no longer a second choice. Our figures are on par with the new vehicle market. We are seeing a growth trajectory in cars, trucks and tractors. New vehicle supply constraints like the semiconductor crisis have also helped the used industry,” said Sameer Malhotra, Director and CEO of Samil.
In FY22, the company recorded deals worth Rs 5,800 crore through 237,667 transactions. Malhotra said the segment has reached pre-Covid levels and the company plans to increase its national footprint from 100 cities to 200 within a year. “From around 17,000 conversions per month in the last fiscal year, we are now doing 20,000 per month,” added Malhotra.
Earlier this year, the company signed an agreement with IIT Delhi’s Yardi School of Artificial Intelligence to enhance its in-house developed used vehicle valuation platform ThePriceX. “We are considering new modes such as phygital auctions with a mission of India and a market. We are betting big on corporate clients and also growing in the retail segment,” added Malhotra.