The pre-owned vehicle market has been witnessing significant growth in recent years, and Mahindra & Mahindra Financial Services aims to capitalise on this trend.

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In an interview with CNBC-TV18, Ramesh Iyer, Vice Chairman and Managing Director at Mahindra & Mahindra Financial Services discussed its progress in the used vehicle segment, the impact of monsoon conditions on sentiment, and the company’s plans for margin improvement.

He said, "The pre-owned vehicle demand is holding up extremely well. In fact, the suppliers are constrained even in pre-owned vehicles because repossessions are lower, therefore the supply is not available adequately. Once you see some traction there, pre-owned will definitely drive growth for us."

Talking about margins, Iyer outlined their plans for improvement. He mentioned that they are prepared to absorb a 20 basis points (bps) rate increase while concurrently enhancing their product mix.

He expressed optimism about maintaining margins within the range of 7.1-7.2 percent over the next year.

Despite challenges posed by a deficit in monsoon rainfall, Iyer noted that sentiment in the market remains positive.

The company is strategically positioning itself to capture a larger share of the pre-owned vehicle market. Despite challenges posed by monsoon conditions, the company remains optimistic and has a clear plan to optimise margins and ensure financial resilience in the coming year.

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