Vehicle industry shall witness a new financer in the coming few month. One of the biggest non-banking finance companies, Magma Shrachi Ltd. is in talks with various auto companies for their vehicle finances.
Magma Shrachi is eyeing a bigger market share of the vehicle finance market in India. It has already signed tie-ups with General Motors, Hyundai and Mahindra. It already has a tie-up with Suzuki to finance their 240,000 cars annually.
Magma Shrachi is one of the biggest growing financial companies in India. It currently has 161 branches across the country and 3974 employees. It had been able to show 20% growth in its commercial vehicle segment in the past year in spite of considerable slow down in the sales of new trucks. It now aims to achieve penetration in the non-traditional urban market to boost its passenger car financing volumes.
According to Sanjay Chamria, vice-chairman and managing director, Magma Shrachi Finance, said, "The company's growth in CV has been higher at 20% compared to an industry growth of 2.5%. We do not expect big growth in this sector. We will be driving the car finance market significantly this year. In 2007-08, our car finance business grew by 60% against 12% for the industry."
