Demonetization impact: Truebil sales up by 30% after 1 year of the watershed moment in India
Mumbai, November 7, 2017: A year has passed since Prime Minister Narendra Modi made the announcement about the demonetization of Rs 500 and Rs 1000 notes of the Indian currency. Many cash-intensive sectors like manufacturing, real estate and even the automobile industry that were growing rapidly, reported contraction in the October-December quarter of 2016. Truebil, India’s leading omni-channel platform for buying and selling of pre-owned cars too faced the heat with a drop of 15% in sales for a couple of months due to the decline in market sentiment. The sales of passenger vehicles, however, started increasing by 15% year-on-year in January 2017. This was followed by a conversion of the latent demand, helping Truebil to boost sales by an above-average 30% by February, 2017.
The purchasing powerof consumers was negatively affected during the initial phase ofdemonetization. At Truebil, prices of all the cars dropped to 10-15% on anaverage. But, eventually, it started witnessing improvements and a good growthon the back of a consumer-friendly budget, strong details of low-interest ratesand steady fuel prices.
Commenting on the growth story, Shubh Bansal, Co-founder and MarketingHead said, “The impact of the demonetizationdrive was short-lived for Truebil as we started converting the latent demandfor used cars on our platform quite quickly.While consumers were spendingcautiously for a few months after November, they were agilein moving back totrusted platforms such as ours to undertake car purchases once things hadsettled down. In fact, the passenger vehicle sales in India crossed the3-million mark for the first time in 2016-17 and the demand is constantlyrising.In retrospect, one can safely say that demonetization has,in fact,created a huge positive impact in the auto industry. It has helped organizedplayers like us by streamlining processes further – such as making Pan Numbermandatory for big-ticket purchases. However, the unorganized sector haswitnessed a drop in cash-based sales which will prove to be beneficial for theeco-system as a whole in the long run.”
Unlike otherunorganized used car dealers, Truebil is a one-stop solution for pre-owned carpurchasing and has emerged as a leading provider of unique value propositionsfor used vehicle buyers and sellers through its convenient processes and valueadditions. It owns dark stores by the name Truebil Direct where cars undergointensive inspection by Truebil’s in-house auto engineers, carry a detailedinspection report, and come with a 1-year comprehensive service warranty,1-year roadside assistance, and 1 free service. The company also provides freeinspection and evaluation, quick sell guarantees, car purchase consulting,paper transfer, loans, insurance, and access to a car spa. By providing accessto a wide variety of choices for consumers and offering them the best pricesalong with the reliability and quality that the dream car should contain,Truebil is meeting the growing demand for vehicles in India through qualitypre-owned inventory and continues to shine as the leader in its domain a yearafter demonetization.