Investor Presentaiton
Exploring Opportunities in the Used CV Industry
INDOSTAR
Large CV Market:
INR 5.6 Lakh Crores*
Used CV financing
under-penetrated, ~60%
336,521
270,553
279,903
331,486
391,544
450,416
516,089
with informal credit
13.3%
11.2%
15.2%
14.9%
14.3%
13.8%
19.4%
8%
Market typically run
Core focus of
IndoStar CV business
11.5%
by private financiers and
14.2%
11.7%
2.5%
13.9%
14.5%
15.0%
31%
money lenders who charge
13.6%
60%
high interest rates
3.3%
2.7%
3.0%
3.1%
3.2%
3.6%
Pipeline for
future business
61%
47.1%
47.5%
47.5%
44.5%
44.7%
45.1%
44.0%
40%
CV Market Value
CV Market Value
18.8%
12.3%
14.5%
15.6%
14.9%
14.3%
13.7%
10+ Years 0.4
0-4 years 3.4
Informal Credit
Formal Credit
7.2%
7.2%
9.0%
7.3%
8.7%
9.1%
9.2%
5-10 years 1.7
FY19
FY20
FY21
FY22
FY23E
FY24E
FY25E
31% of the market or 1.7 Lakh Crores is
5-10 years old
MHCV
LCV
MLCV
CAR & MUV
Tractor
CE
ā
ā
Commercial vehicle market is growing every year with the annual market size pegged at Rs.5.60 lakh Cr which incl New, Used, WC and
Term loan funding
Similarly, Used vehicle financing expected double by FY25 considering the scrap policy of 15 years limit
Around 50% to 60% financing is with unorganized sector which should also reduce in future due to scrap policy and organized sector
will play major role in UV finance
In the space of Organized Sector, IndoStar aims to have a decent market share
Used Vehicle Business is going to play a major role in next 4 to 5 years
Significant opportunity to
scale up the CV disbursement
in next 2 years
Source: SIAM & Vahan Data; *As per company analysis
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