Post Covid-19 lockdowns, demand for vehicle loans is rising, says financier

The lockdown, which impacted the movement of vehicles across states, and subdued economic growth in the last few years impacted sales of commercial vehicles

Cholamandalam Investment and Finance Company Ltd., a vehicle financier, is seeing a rise in demand for personal mobility vehicle loans as the nation emerges from coronavirus-induced lockdowns.

“The need for personal transportation is going up,” said Chief Financial Officer Arulselvan D. in response to a question about the impact of the pandemic. “We are seeing good demand for entry-level cars and two wheelers.” Sales of used vehicles may see a spurt as new vehicles may be costlier because of upgraded emission norms, he said.

Sale of cars