In a recent exclusive interview with The Economic Times, Raul Rebello, the designated managing director of Mahindra Finance, articulated the company’s future priorities. Rebello underscored the significance of digitisation, used vehicle financing, and growth in ‘in prime’ customer segments as the primary drivers of the company’s success.
A major focal point for Mahindra Finance is used car financing. Despite heightened competition from NBFCs such as L&T Finance, Rebello retains an optimistic outlook on the company’s position in this segment. Currently, used vehicle financing accounts for 17-18% of the company’s business, with plans to elevate this figure to 20% in the near future. Rebello highlighted the natural alignment of the used vehicle business with Mahindra Finance, citing its robust rural reach and strong dealer and OEM partnerships.
When questioned about the urban and rural markets for used cars, Rebello acknowledged demand from both segments. He also addressed concerns about declining interest rates and their impact on the market, emphasizing the importance of last mile distribution in the overall inventory flow.
In addition to used car financing, Rebello elaborated on the company’s involvement in the electric vehicle (EV) sector, particularly in financing three-wheelers. He emphasized the substantial adoption of electric three-wheelers and the company’s aim to sustain financing for high-demand products in this space.
With regards to passenger vehicle financing, Rebello offered insights into market trends and the company’s approach to financing electric and hybrid vehicles. He also highlighted the increasing focus on ‘in prime’ customers, observing a consumer shift towards higher-end vehicles with enhanced features.
Rebello also delineated the new business verticals that Mahindra Finance is exploring, encompassing the SME segment and various products such as loan against property, machinery loans, and business loans. He underscored the growth potential in these areas and the company’s strategic collaborations with fintechs like Lendingkart.
In conclusion, Rebello indicated the company’s interest in expanding its wealth management and insurance businesses, as well as the potential for future growth in the mutual fund sector. When queried about potential fund generation for the housing finance business, Rebello stressed the imperative of creating value before unlocking value, signifying ongoing efforts in that domain.
Overall, the interview with Raul Rebello furnished valuable insights into Mahindra Finance’s strategic priorities and future plans, positioning the company as a pivotal player in the evolving financial landscape.
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