Ashutosh Pandey, CEO of Mahindra First Choice Wheels, explained to TOI, “In the last one year in the smaller tonnage segment, the unorganised fleet used for inter and intra-city logistics has been moving increasingly from new trucks to used. This is happening because of price increases and some stress in the logistics market since the freight rate increases have not been as consistent of late as in the past. So smaller unorganised fleet operators have to rely on cost reduction and used trucks are 40% cheaper than new.”
This trend towards used trucks has been gaining momentum for nearly two years. A Shriram Finance spokesman highlighted, “Over the past two years, prices for all types of used commercial vehicles, whether BS IV or BS VI, have increased 25-30%. The subdued sales during 2019-22 have resulted in a shortage of supply in the used truck market.”
With new vehicle prices continuing to rise, the used truck market is experiencing significant traction. Prices for used vehicles are expected to remain strong as the current batch of new trucks will become available in the pre-owned segment in a few years. This could potentially drive sustained growth in the used vehicle segment.
with TOI inputs