Here’s how CV financiers faring due to upswing in the space

Commercial vehicle sales are back to pre-COVID levels, which augurs well for CV financers too.

Total CV sales have been above pre-COVID levels for two quarters in a row. The data is important as CV sales are closely linked to economic growth.

Sale of Commercial Vehicles have increased 75.6 percent year-to-date, while those for Medium & Heavy Commercial Vehicles (M&HCV) have increased 108.2 percent. The sale of Light Commercial Vehicles are up 63 percent from last year.

So how is the CV cycle benefitting NBFCs?

All the CV financiers have seen an uptick in their net interest margin from last year, aided by a pick up in growth, decline in the stress portfolio, and the lower cost of funds due to the shift of borrowings to banks.

Watch the accompanying video of CNBC-TV18’s Abhishek Kothari for more details.