Tuesday 19 January 2021

CRIF-SIDBI Industry Spotlight Vol 2 - Indian Auto and Auto Components Industry


·         The total credit availed by the sector by value as of June 2020 stood at INR 113K crore (12% of the Sectoral Turnover of 9.4 lakh Cr), and by volume or the number of active loans stood at 137.88K.

·         Declining NPAs (proportion of credit value delinquent by 90+ days) over the last 6 quarters, standing at 9.95% as of June 2020. The NPAs declined by nearly 3% in a span of one year and by 1.5% over the previous quarter.

·         Public sector banks are dominant in providing finance to the sector with a share of 34.8% in volume as of June 2020, NBFCs 29.6%, private banks 29.1%, foreign banks 3.5% and others 2.8%.

·         The top 8 automobile clusters together constitute 80% of the credit portfolio as of June 2020, annual growth rate of 14.4% as of June 2020.

Quote from Navin Chandani, CEO CRIF High Mark

Share of disbursement of loans to MSME borrower segment in Q1 FY 2020-21 has increased by 24% over the same quarter previous year. This can be attributed to favourable Government policies such as approval of Production Linked Incentive (PLI) scheme for auto sector and fiscal stimulus to MSMEs in the form of Emergency Credit Line Guarantee Scheme - both as part of AatmaNirbhar Bharat Abhiyan. We are positive that the sector will continue to flourish further with Government's 'Make in India' initiatives and GST implementation that has aided in emergence of new auto clusters and registrations of new MSME units.

 

We will be happy to facilitate inputs from the leadership team at CRIF, please do let us know should you need..

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