Vehicles in the 1.5 to 2 tonne segment saw a 38% jump in prices in the used vehicle market, the Shriram Mobility Bulletin showed. The 2 to 3.5 tonne segment was up 22% and the 3.5 to 7.5 tonne segment was up 21%. The only other segment to clock higher price hikes was the 31 to 36 tonne category but, said truck marketers, this is more a skew given how few of the higher GVW (gross vehicle weight) trucks get repossessed.
“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,” said Ashutosh Pandey, CEO, Mahindra First Choice Wheels.
According to used truck marketers, the trend towards used trucks has been visible for nearly two years now. “Over the past two years, prices for all types of used commercial vehicles, whether BS IV or BS VI, have increased 25-30%,” said a Shriram Finance spokesman. “The subdued sales during 2019-22 have resulted in a shortage of supply in the used truck market.” With new vehicle prices still on the rise, the used truck market is experiencing significant traction and prices for used vehicles are expected to remain strong. The current batch of new trucks (comprising one or two year old vehicles) will be available after a few years in the pre-owned segment. “This could potentially drive sustained growth in the used vehicle segment,” he added.
