Shriram Finance anticipates the commencement of a commercial vehicle up-cycle

Based in Chennai, Shriram currently serves as one of the leading retail non-banking financial companies (NBFCs), offering credit solutions for a wide range of purposes, including commercial vehicles, two-wheeler loans, car loans, home loans, gold loans, personal loans, and small business loans.

Chakravarti stated, "We are at the beginning of the vehicle cycle, and it has a lot of good way to go."

One of the key indicators of this upcycle is the increasing demand seen across all segments of vehicles. Whether it's heavy-duty trucks, light commercial vehicles, or other types of CVs, the industry is experiencing a surge in demand. This uptick in demand suggests a broader economic recovery and a growing need for transportation and logistics services.

Chakravarti's assessment of the next 3-4 years as a favourable period for both manufacturers and financial institutions is based on this optimistic view of the commercial vehicles (CV) market. As demand for these vehicles continues to rise, manufacturers stand to benefit from increased production and sales. Simultaneously, financial institutions specialising in vehicle financing, such as Shriram Finance, are likely to witness heightened activity and lending opportunities.

Chakravarti's views align with broader economic trends, where an uptick in demand for commercial vehicles is seen as an indicator of economic expansion and increased business activity. His outlook remains upbeat for the foreseeable future, providing encouragement for both manufacturers and financial institutions operating in the commercial vehicle sector.

As per Shriram Finance's Vision 2026 strategy, it intends to achieve a threefold increase in the assets under management for housing finance, reaching a total of Rs 30,000 crore. Additionally, it has set its sights on doubling the size of their branch network.

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