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Impact on Auto Sector in Pandemic era: According to a Customer Survey shows Commercial Activities and Asset Deployment improved

Magma Fincorp’s Nationwide Customer Survey shows Commercial Activities and Asset Deployment improved.

11 Sep 2020, 05:45 by NEWSBLARE

Mumbai, 7 September 2020: Mumbai-based NBFC, Magma Fincorp Limited conducted a survey of 3 lakh customers across cars, commercial equipment (CE), commercial vehicle (CV), and tractor segments recently. The survey found that on a weighted average basis deployment across asset classes has improved in July 20 compared to April 20.

Deepak Patkar, CEO – ABF Biz, Magma Fincorp said, “Magma is committed to ‘Investing in the smallest dream’. We believe the act of a first-generation entrepreneur seeking finance for buying a productive asset, represents the very soul of financial inclusion – it is thousands of such customers that are helping build a modern India from the grassroots.”

Commercial Vehicles/Construction Equipment: Saw a ten-fold increase in vehicle deployment between April and July. Out of the 60% asset deployment, load utilization was 50%.

Personal Cars: The Personal Car segment comprised customers whose cash flows are largely dependent on their businesses. There has been an improvement in the cash flow situation. Customers who have largely been in addressing downstream customers from essential goods, agri-based & FMCG sectors are showing positive trends vis à- vis customers in sectors such as garments, gems & jewellery, etc.

Commercial Cars: Taxi segment -includes app cab & tour operators – have seen low deployment.

Tractors segment: For Agri-based usage, Bumper Rabi crop harvest and timely government Interventions enabled farmers to improve crop sales and cash flows during challenging times. 70% of the customers were able to make their payments on time. For Commercial usage, improvement is to be seen as Cash flow crunch persists due to deployment issues.

About Magma Fincorp Limited

Magma Fincorp Limited (“Magma”) a Mumbai-based non-deposit taking non-banking finance company (NBFC), is registered with the Reserve Bank of India (RBI) as an Asset Finance Company. The Company started operations nearly three decades back and is listed on the BSE and NSE in India.

Magma, a financial conglomerate offers financial products such as asset finance, SME finance, mortgage, and general insurance. Magma is focused on the rural and semi-urban sector and is present in 21 States and 300 Branches. Magma has served 3 million customers and manages a loan book of Rs 15,922 cr.

For more information please log on to: www.magma.co.in