Chennai โ When it comes to the used truck market, BS4 is still the rule as the demand for BS6 trucks has been affected by the unavailability of spare parts in the aftermarket. According to truck financiers and used truck dealers, the availability of both BS6 stock and spare parts is the reason why 90% of used truck sales are BS4 and BS3. The fact that these older legacy vehicles are available at a better price also makes them attractive.
โThere are no spare parts available for BS6 vehicles, so there is less demand on the used market. This is partly due to lower vehicle supply, as well as production limitations on BS6 vehicle parts. As a result, BS3 and BS4 vehicles rule the used commercial vehicle market," he said. Umesh RevankarMD, Shriram Transport Finance.
Dittoed Ashutosh Pandey, CEO, Mahindra First Choice Wheels, a market leader in organized used vehicle retailing. "We've seen a very high preference for the slightly older BS4 trucks over the newer ones," Pandey said. โOne reason is availability. The second is the price, which is much better for BS4 vehicles. And finally, parts are available for BS4 vehicles, making restoration and maintenance of these easier and much more cost-effective.โ โAs BS4 shares are relatively new, they are good value for money compared to BS6,โ adds a Chennai-based used truck financier.
Used truck retailers and financiers say the sharp rebound in used vehicle sales is a sign of economic recovery. โDue to strong demand, the resale value of dump trucks and heavy commercial vehicles has seen a 15% increase, while the resale value of light commercial vehicles has increased by 20% to 25%,โ Revankar said.
With demand for used trucks coming primarily from owner operators rather than large fleet carriers, this surge in demand "is the leading indicator that the Covid-induced slowdown may finally be behind us," Pandey said. . Sales of used commercial vehicles increased 30% year-on-year in the period between April 21-22 and February.
โThere are no spare parts available for BS6 vehicles, so there is less demand on the used market. This is partly due to lower vehicle supply, as well as production limitations on BS6 vehicle parts. As a result, BS3 and BS4 vehicles rule the used commercial vehicle market," he said. Umesh RevankarMD, Shriram Transport Finance.
Dittoed Ashutosh Pandey, CEO, Mahindra First Choice Wheels, a market leader in organized used vehicle retailing. "We've seen a very high preference for the slightly older BS4 trucks over the newer ones," Pandey said. โOne reason is availability. The second is the price, which is much better for BS4 vehicles. And finally, parts are available for BS4 vehicles, making restoration and maintenance of these easier and much more cost-effective.โ โAs BS4 shares are relatively new, they are good value for money compared to BS6,โ adds a Chennai-based used truck financier.
Used truck retailers and financiers say the sharp rebound in used vehicle sales is a sign of economic recovery. โDue to strong demand, the resale value of dump trucks and heavy commercial vehicles has seen a 15% increase, while the resale value of light commercial vehicles has increased by 20% to 25%,โ Revankar said.
With demand for used trucks coming primarily from owner operators rather than large fleet carriers, this surge in demand "is the leading indicator that the Covid-induced slowdown may finally be behind us," Pandey said. . Sales of used commercial vehicles increased 30% year-on-year in the period between April 21-22 and February.
