Daimler India Commercial Vehicles has entered the used truck market — called the Bharat Benz Exchange platform.
The platform facilitates exchange of any used commercial vehicle of any brand with a used Benz make or a new model. Besides, anyone can buy a used Benz truck. The used market for trucks is hugely unorganised, with estimates of three used trucks sold for every new model.
German giant Daimler has started the business at a time the medium and heavy commercial vehicles market contracted 74 per cent in the first half of 2020. Daimler Trucks sold 2,439 units in the first quarter of 2020 compared with 5,549 units a year ago.
The plan to move into the used vehicle segment was put in place well before the pandemic, the company said. “The pandemic’s effect on the economy may well increase the market for used vehicles, so the launch of BharatBenz Exchange comes at the right time,” said Rajaram Krishnamurthy, vice-president, sales and marketing, Daimler India Commercial Vehicles.
The company has increased the volume base of BharatBenz vehicles in the last eight years and is now creating a structured ecosystem for a sustainable used vehicle business. The business was started with the objective of offering a transparent and reliable truck experience to customers.
“Resale value is one of the most significant part of commercial vehicle operating economics. We want to provide our customers the best resale value. This is a a very important tool for customer retention as well as getting new customers,” Krishnamurthy said.
On how much the business will contribute to overall sales, Krishnamurthy said: “Initially, we will serve our customers by exchanging their vehicles with a no profit / no loss model. However, at the same time, revenue is translated from the sale of new vehicles and service revenue on used vehicles. Our target is to attain 10 per cent of retail via exchange.”
“There are a lot of individuals in the market who are simply trying to manage their own fleets. However, we want to create a structured eco-system where our stakeholders also grow with us,” he said.
People who want to sell their used CVs often have to find a buyer on their own – a time consuming process with a lot of paperwork and stress on both parties. Buyers, too, must be concerned about investing in a vehicle that may not live up to its purchase price. “In BharatBenz Exchange we offer customers a transparent exchange process with financing support, a pool of certified vehicles and warranty/AMC options,” Krishnamurthy said.