1

Banks dominate the auto finance market with ~69% market share
Approximately 75% of the cars purchased in India are bought through loans
The Auto loans market is dominated by banks and also has significant
presence of NBFCs
In the recent past, a number of MNC car manufacturers like Volkswagen,
Mercedes, BMW, Toyota have set up their own financing arms
In FY 2011, the total disbursements of Car Loans were estimated to be at
INR 602 Bn.
The top players in the Car Loans market in India are:
- Banks like HDFC Bank, ICICI Bank, State Bank of India (which linked
up with GM in 2009), PNB (who linked up with Mahindra and
Mahindra for financing their vehicles), Citibank, Bank of Baroda,
Punjab National Bank
- NBFCs like Magma, MMFSL, Tata Capital, Tata Motor Finance, Kotak
Mahindra Prime Limited (KMPL), Sundaram Auto Finance
69%
31%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY 12
Split of Auto Finance Banks and
NBFC (FY 2012)
Bn. 1,400 Bn.
NBFCs
Banks
2
The total commercial vehicle financing market organized as well as unorganized is expected to be around INR
1,850 Bn
Source: Shriram Transport Investor Presentation
38%
42%
20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY 13
Truck Profile in India (By Age)
(FY 2013)
Mn.
Less than 5 Years
5 12 Years
More than 12
Years
5.2 Mn
Market Potential for CV Financing
(Organized + Unorganized) (FY 2013)
INR Bn.
Less than 5 Years
5 12 Years
More than 12
Years
1850 Bn.
50%
40%
10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY 13
~95% of the commercial vehicles are
purchased under a finance
arrangement
The market potential for CV
financing market is INR 1,850 Bn.
The market for second hand trucks is
under penetrated with 65-70% of
the market with private financers
who charge high interest rates
There is legislative pressure on
banning trucks beyond 15 years
Such a ban is expected to trigger
replacement boom
3
The organized commercial vehicle finance market was ~INR 485 Bn. in FY 12 with specialized truck finance
companies having ~37% market share
The organized commercial vehicle finance market
increased from 194 Bn. in FY 2009 to 485 Bn. in FY 2012
The top players in the Commercial Vehicle Finance market
in India are:
- Private sector banks: HDFC Bank Ltd, IndusInd Bank
Ltd, Kotak Mahindra Bank Ltd
- Public sector banks: State Bank of India, Bank of
India and Bank of Baroda
- Group Finance companies: Tata Motors Finance
Ltd and Mahindra and Mahindra Financial Services
- Specialized Truck Finance companies: Shriram
Transport Finance
Banks typically lend only to big fleet operators, whereas
NBFCs also deal with small truck operators
23%
33%
13%
13%
28%
18%
37% 37%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY 09 FY 12
Share of Financial Institutes in Organized
Commercial Vehicle Finance
INR Bn.
485 Bn 194 Bn
Private Sector
Banks
Tata Motors +
Mahindra Finance
Specialized Truck
Financing
Companies
Public Sector
Banks
4
SREI BNP has ~33% market share in the Equipment finance market followed by HDFC bank which has ~13%
market share
Total Construction Equipment Finance Market
Size (FY 2011)
INR Bn.
78
30
19
18
12
13
12
56
0
50
100
150
200
250
FY 11
SREI
HDFC Bank
Tata Capital
Magma Fincorp
Others
L & T Finance
Kotak Bank
IndusInd Bank
The major construction equipment include earth moving
equipment, material handling equipment and road construction
equipment
JCB, Telcon, L&T Komatsu, Volvo, Caterpillar and Hyundai are the
major manufacturers of construction equipment in India
NBFCs dominate the construction equipment market with more
than 65-70% market share
SREI BNP dominates the equipment finance market and has
about 33% market share
HDFC Bank is the only banking company among the top 5 lenders
and ~13% market share in this segment
230 Bn.