The commercial vehicle (CV) numbers, which have been delayed for the past 2 years, seems to be recovering, said D Arul Selvan, Executive Vice President and CFO, Cholamandalam.
He expects replacement cycle in commercial vehicles to kick-in in the near term.
"We are gearing to capitalize on this replacement cycle, it has already started to happen. February has seen a good growth, all the CVs have seen a good growth. We expect to see good increase,” he added.
Selvan further stated that the assets under management (AUM) growth may not look significantly higher but if one looks at FY20 versus FY22, he will see a good growth. One also needs to accommodate this moratorium impact on the AUM, he noted.
“We expect the collections to be more and more improving for better. We are seeing it on the ground. January was a good month, even February was more or less equal, marginally surpassed the January collection. So on the ground, the earning potential of the customer has been improving and they are able to now service the loan comfortably. That is giving us the comfort and that we are seeing being reflected in our collection efficiency,” he pointed out.
For full interview, watch the video…