Auto finance to rebound only by next fiscal mid: Cholamandalam Investment

Sees demand rising but no big bang, says multiple issues affecting disbursement growth such as second Covid wave and chip shortage

With longer waiting periods due to chip shortage and the Covid impact dampening auto sector sales, vehicle financing is expected to get back to the FY19 level only by the middle of next financial year, a senior executive of Cholamandalam Investment and Finance Company (CIFC) has said.

The Murugappa group company's disbursements declined 18 per cent decline in vehicle loan segment, from Rs 24,983 crore in FY19 to Rs 20,249 crore in 2020-21. The business contributes to 71 per cent of its assets under management. During the second quarter of the current financial year, vehicle finance disbursements rose 22 per cent