Market Share of Commercial Vehicle Financing Industry
The commercial vehicle financing market is highly fragmented and competitive due to the presence of various international and domestic players operating in the ecosystem. Moreover, the integration of non-banking financial companies and small finance banks has enhanced the industry's competitiveness. Some of the major players include Bank of America Corporation, Ally Financial Inc., HDFC Bank Limited, Toyota Financial Services, Standard Bank Group Ltd, Bank of China, and Mahindra Finance. These players are actively focusing on forming partnerships with other financial institutions and automakers to provide commercial vehicle loans to customers to finance their vehicle purchases. For instance,
- In October 2023, Bajaj Finance Ltd announced that it had raised INR 10,000 crore (USD 1.2 million) through QIP and convertible warrants to launch its microfinance business, including commercial vehicle lending and tractor financing. Further, the company stated that they are strategizing to launch the commercial vehicle lending business in India by June 2025 to expand their retail banking segment in the country.
- In October 2023, Volta Trucks, the leading and disruptive all-electric commercial vehicle manufacturer and services provider, announced its partnership with Societe Generale Equipment Finance (SGEF) to offer vehicle financing as part of Volta Trucks’ Truck as a Service (TaaS) solution. As per the agreement, SGEF will offer Volta Trucks’ customers operating and finance Lease fund programs to support customer agreements across its European markets till 2031.
The market is anticipated to witness the integration of various non-banking financial companies (NBFCs) offering commercial vehicle loans with less documentation requirement than traditional banks. Further, players in the industry are expected to enhance their online applications to assist consumers in garnering crucial information on interest rates and other requirements.
Commercial Vehicle Financing Market Leaders
Bank of America Corporation
Ally Financial Inc.
HDFC Bank Limited
Toyota Financial Services
Standard Bank Group Ltd.
*Disclaimer: Major Players sorted in no particular order
