Monthly used-CV sales would be 30,000-35,000 for the industry. The big challenge was that RTO services had come to halt, and people were not able to move out as well.
After introducing digital bidding, the company reported sales of 8,000-9,000 a month, led by SCVs and LCVs up to 10 tonne. The M&HCV segment is yet to see major momentum.
Malhotra says demand is driven by rural economy, movement of essential commodities and the Ministry of Home Affairs (MHA) guidelines which will allow some manufacturing activities to start on April 20. He expects the industry will do some 25,000-30,000 units in July and by end of the year it will surpass last year's number of 30,000-35,000 units a month.
The company has started discussions with RTOs and state governments for faster registration, innovative delivery process, various digital payment options, new digital bidding processes, financing options, new rural and green districts customer reach programmes, among other things.
Umesh Revankar, MD & CEO, Shriram Transport Finance, the largest financier of commercial vehicles in the country said due to the shortage of drivers, the demand for individual operators has increased, leading to an increase in freight rates as well.
Quoting reports, he said, FMCG sector is giving 25 per cent more freight to improve supply chain, while for perishable movement the freight rate increased by nearly 50 per cent.
At present the used vehicle owners have got an edge and they will continue to have it till the drivers come back, which will take few months. This inturn will push the demand for buying and selling, but the challenge remains is people need to come out, availability of finance, opening of workshops among other factors.
Shamsher Dewan, Vice President, ICRA Limited added the used truck segment is equally impacted because of the economic slowdown and resultant capacity surplus in the CV fleet. However, there has been some shift in favour of used trucks because of the sharp rise in prices of new trucks over the past 2 years. This has supported prices of used vehicles to an extent. Additionally, the viability of used vehicles remain better compared to the new vehicles because of low cost of ownership.