Sunday, March 26, 2023
  • PRESS RELEASE
  • ADVERTISE
  • CONTACT US
198 Automobile News
No Result
View All Result
  • Home
  • Videos
  • Business
  • Brands
  • Clubs
  • Ratings & Reviews
  • News
  • Blog
  • Ad
  • Autodeals
  • Auctions
  • Global Trends
  • Contact Us
  • Home
  • Videos
  • Business
  • Brands
  • Clubs
  • Ratings & Reviews
  • News
  • Blog
  • Ad
  • Autodeals
  • Auctions
  • Global Trends
  • Contact Us
No Result
View All Result
198 Automobile News
No Result
View All Result
Home Business

Delinquencies could become a big reason to worry for auto lenders, Auto News, ET Auto

by The Editor
October 14, 2020
in Business
0
Delinquencies could become a big reason to worry for auto lenders, Auto News, ET Auto
Share on FacebookShare on TwitterShare on EMail

[ad_1]

Delinquencies could go up to at least 6-8 per cent of the lenders’ retail portfolios in the commercial vehicles segment.
Delinquencies could go up to at least 6-8 per cent of the lenders’ retail portfolios in the commercial vehicles segment.

Mumbai: Delinquencies could go up sharply for lenders to automobile buyers, especially in the commercial vehicles segment as the transport business reels from over-capacity and wafer-thin margins, according to analysts at research and ratings firms ICRA.

In March this year, the share of loans with payments pending for over 90 days past the due date (DPD) was highest since 2014 at 3.5 per cent of the industry’s retail portfolio, ICRA said in a presentation. Subsequently, retail as well as wholesale financing to the automobile industry was under pressure as lenders get more cautious.

We expect a sharp spike in delinquencies September onwards as the loan moratorium ends.ICRA

Delinquencies could go up to at least 6-8 per cent of the lenders’ retail portfolios in the commercial vehicles segment, he said. There were a lot of enquiries by transport operators to surrender their vehicles to the lenders.Subsequently, repossession of vehicles will go up too.

“There is healthy demand for commercial vehicles in the second-hand market,” Dewan said. “Prices of second-hand vehicles have held up due to increase in the price of new vehicles.”

The prices of commercial vehicles have gone up by 10-15 per cent since March this year after vehicles became BS-VI emission norms compliant. This has led to an increased preference for used vehicles, especially amongst smaller operators with fleet sizes between 2-5 trucks.

Last month, a report by Indian Foundation of Transport Research and Training (IFTRT) suggested that between 45,000-50,000 heavy trucks could be repossessed as transporters default on loan repayment. However, many transporters have claimed the estimate to be exaggerated since.

Delinquencies will be higher for non-banking financial companies (NBFCs) than banks as the latter were able to access more prime customers, said Ashish Modani, vice president at ICRA.



[ad_2]

Source link

ShareTweetSend

Related Posts

2023 VW ID.4 Debuts With New Base Trim Starting At $38,790

2023 VW ID.4 Debuts With New Base Trim Starting At $38,790

by The Editor
August 4, 2022
0

The 2023 Volkswagen ID.4 arrives with a new entry-level Standard grade and updates throughout the trim levels. VW is...

Electric truck maker Nikola beats revenue estimates on higher deliveries

Electric truck maker Nikola beats revenue estimates on higher deliveries

by The Editor
August 4, 2022
0

Nikola Corp exceeded market estimates for quarterly revenue on Thursday as the electric-vehicle maker delivered more semi trucks after...

Consolidated profit at INR 41.14 crore, Auto News, ET Auto

Consolidated profit at INR 41.14 crore, Auto News, ET Auto

by The Editor
August 4, 2022
0

Sundaram Finance Holdings (SF Holdings) has reported a consolidated net profit at INR 41.14 crore up by 30.27% for...

BMW sees volatile 2022 with chips and energy squeeze in focus

BMW sees volatile 2022 with chips and energy squeeze in focus

by The Editor
August 4, 2022
0

BERLIN — BMW lowered its output forecast and warned of a highly volatile second half on Wednesday, pinpointing supplies...

Lordstown Motors reports first quarterly profit on asset sale to Foxconn

Lordstown Motors reports first quarterly profit on asset sale to Foxconn

by The Editor
August 4, 2022
0

Lordstown Motors Corp on Thursday reported its first quarterly profit as the electric-vehicle firm benefited from the sale of...

Ashok Leyland distributor Deluxe Trucks & Buses inks pact with Kenya Commercial Bank for vehicle financing, Auto News, ET Auto

Ashok Leyland distributor Deluxe Trucks & Buses inks pact with Kenya Commercial Bank for vehicle financing, Auto News, ET Auto

by The Editor
August 3, 2022
0

File Image New Delhi: Ashok Leyland’s authorized distributors, Deluxe Trucks, and Buses in Kenya on Wednesday signed a partnership...

Load More
Next Post
Acura MDX Prototype looks great, adds Type S to portfolio

Acura MDX Prototype looks great, adds Type S to portfolio

Nissan US finance unit fined $4m over improper repossessions | Automotive Industry News

Nissan US finance unit fined $4m over improper repossessions | Automotive Industry News

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

No Content Available
Load More
198 Automobile News

Get the latest automotive news and follow the coverage of updates, new release, auctions, deals and and more from the world's top trusted sources.

Follow Us

Categories

  • Auto Auctions
  • Autodeals
  • Blog
  • Brands
  • Business
  • Clubs
  • Global Trends
  • News
  • Reviews
  • Videos

Recent News

CerebrumX’s deep learning platform hints at the future of connected vehicle data

CerebrumX’s deep learning platform hints at the future of connected vehicle data

August 5, 2022
Food delivery strike in Malaysia today – Grab responds

Food delivery strike in Malaysia today – Grab responds

August 5, 2022
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2020 198 Automobile News.

No Result
View All Result
  • Home
  • Videos
  • Business
  • Brands
  • Clubs
  • Ratings & Reviews
  • News
  • Blog
  • Ad
  • Autodeals
  • Auctions
  • Global Trends
  • Contact Us

Copyright © 2020 198 Automobile News.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?