Shriram City Union Finance Limited, a part of the Shriram Group, is India’s largest two-wheeler financer (based on the number of two-wheelers financed). The company has now achieved the milestone of one crore two-wheeler financing in India. Shriram City is a 35-year old company and it entered the two-wheeler lending space in the year 2002. It is one of the most preferred two-wheeler financing companies in the country and has a market share of around 20 per cent of all vehicles financed pan-India.
According to the company, it took them 15 years to finance the first 50 lakh two-wheelers while the next 50 lakh customers were added in under 4 years. The company claims that its rural footprint is quite large, with 971 branches, 80 per cent of which are located in under-penetrated rural or semi-urban areas. Shriram City’s assets under management for two-wheelers stood at Rs 6,750 crores as of September 2021. The company says that while in the early years, the two-wheeler business was majorly sourced from the Southern States, currently, non-South locations account for around 60 per cent.
Uttar Pradesh, Tamil Nadu, Maharashtra, Andhra Pradesh, and Madhya Pradesh are the largest contributing states to Shriram City’s two-wheeler financing business with North India following closely. The company recently also forayed in the Eastern parts of the country and its reported business volumes are almost at par with some of the Northern regions. Shriram City finances a wide variety of two-wheelers, ranging from Honda to Hero MotoCorp, TVS to Bajaj, Yamaha to Royal Enfield, and also the latest EV entrants.
On achieving this milestone, Y.S. Chakravarti, MD & CEO, Shriram City said: “The one crore two-wheelers financed milestone coincides with the 2021 festive season. The festive cheer, pent-up demand, and a good monsoon have aided rural demand. At Shriram City, our goal is to help consumers earn a livelihood, with 65% of our borrowers being self-employed and using the two-wheeler as part of their business.”
He further added, “We cater to salaried and non-salaried consumers and help them realize their dream of conveniently owning a bike at the most economical rates. Shriram City has introduced innovations like app-based lending, paperless receipting, and contactless loans in the two-wheeler loan space. We have tied-up with electric vehicle manufacturers and expect this business to meaningfully contribute to its success as well as to the environment in the coming years.”