SIAM seeks affordable Finance to boost demand and expects Compliance to Vehicle Insurance would Increase
New Delhi: During the 2nd edition of the SIAM Automobile Finance & Insurance Summit themed on “Re-Connecting with Customers during Challenging Times”, vehicle manufacturers, bankers, financers and insurance companies deliberated on re-shaping automobile business post COVID.
All stakeholders identified the need to augment demand with easier and affordable access to finance & insurance as such measures would greatly incentivise customers to reconsider vehicle purchases, which hit all-time low during the first Quarter of FY 21. Various policy recommendations and regulatory issues to address on-ground operational challenges were highlighted.
Mr Rajesh Menon, Director General, SIAM, said, “There is a need to better connect with customers for finance, leasing and insurance which would support in bringing back the Auto sector on a sustainable growth path”.
Mr Gopal Bansal, Chairman, SIAM Finance and Leasing Group and Whole Time Director & CFO, SML Isuzu said, “Closer association between Auto and Finance sector would ultimately benefit the customers”.
Mr Diego Graffi, Chairman & MD, Piaggio Vehicles, highlighted that there are several challenges in financing three wheelers and PSU banks need to recommence financing for this segment and Three-Wheeler Manufacturers would provide necessary support as required.
Expert speakers covered all operations issues ranging from buying cars to ease of processing documents. Financers are nowadays more cautious and practise greater due diligence, use better filters when it comes to disbursing loans to consumers. Leasing was also identified to have a good potential. It was identified that vehicle insurance industry grew by a robust 17.2% CAGR over the last 20 years and is expected to grow at a steady rate, going forward. At present, over 57% of vehicles plying on the road are uninsured, however, will telematics, Vahan portal and fast tags coming in, 90% to 95% of vehicles will be insured by 2030.Experts from Tata Motors, Sundaram Finance, Yes Bank, State Bank of India, Carwale Bajaj Allianz. GIC. HDFC ERGO, GIC, Maruti Insurance Broking, among others, shared their perspective.