Now Reading: Shriram Finance sees strong CV demand despite price hikes
-
01
Shriram Finance sees strong CV demand despite price hikes
Shriram Finance expects commercial vehicle demand to remain robust despite price hikes driven by commodity inflation, as economic activity offsets tariff and geopolitical challenges. The company’s monthly EV financing has surged five-fold…
Shriram Finance expects commercial vehicle demand to remain robust despite price hikes driven by commodity inflation, as economic activity offsets tariff and geopolitical challenges. The company’s monthly EV financing has surged five-fold to Rs 250 crore from Rs 50 crore last year, and it targets Rs 500 crore per month next year.
Executive vice-chairman Umesh Revankar said firming prices benefit existing owners through higher vehicle values and freight rates, while also supporting loan book growth. Japan’s MUFG has agreed to buy a 20% stake in Shriram Finance for nearly Rs 40,000 crore via a preferential issue, providing capital cover until 2030.
Shriram plans to add 150 branches and 2,000-3,000 staff this financial year. The company aims for 18-20% asset growth in FY27 and to double its portfolio within five years, with EV demand spreading across two-, three- and four-wheelers.
Indian Opinion Analysis
Shriram Finance’s forecast is a key signal for India’s logistics sector, where CV sales track GDP growth. With MUFG’s Rs 40,000 crore infusion, the company has a capital runway until 2030, letting it expand branches and workforce. EV financing’s jump from Rs 50 crore to Rs 250 crore monthly reflects the government’s FAME-II subsidy push, though a phase-down after March 2024 could test demand. The target of Rs 500 crore monthly EV disbursements next year will be a concrete benchmark to watch. Next trigger: RBI’s quarterly credit data to see if CV loan growth matches Shriram’s 18-20% asset expansion forecast for FY27.
Source: timesofindia.indiatimes.com
This story was synthesised by AI from the source linked above.
