Shriram Finance plans 150 branches and up to 3,000 hires as EV lending accelerates
Shriram Finance expects commercial-vehicle demand to hold despite price hikes, with monthly EV disbursements rising five-fold to Rs 250 crore. The lender plans about 150 branches and 2,000–3,000 hires this financial year, targeting 18–20% asset growth in FY27.
What happened
Shriram Finance expects commercial-vehicle demand to withstand price hikes and sees accelerating EV finance. Backed by MUFG’s planned 20% investment, it will
Key facts
- EV monthly disbursements rose five-fold to Rs 250 crore from Rs 50 crore last year
- EV monthly disbursements targeted at Rs 500 crore next year
- MUFG to acquire 20% in Shriram Finance for nearly Rs 40,000 crore
- About 150 branches planned this financial year
- 2,000-3,000 employees to be added this financial year
- Assets expected to grow 18-20% in FY27
- Company aims to double in five years
Why this matters
The EV lending surge strengthens the case for partnerships with OEMs, dealers, charging providers and insurance players to secure origination channels before the branch-led expansion accelerates.
What to watch
- Monthly EV disbursements sustaining or exceeding Rs 250 crore for multiple quarters.
- Net interest margin, cost-to-income ratio and operating-expense trends as branches and staff are added.
- Delinquency and credit-cost performance for EV loans versus the broader commercial-vehicle portfolio.
- Commercial-vehicle sales, freight rates, diesel prices and utilization indicators after vehicle price increases.
- OEM incentives, battery-residual-value trends and policy changes affecting EV adoption or financing.
- Branch rollout pace and whether net headcount additions approach the stated 2,000-3,000 range.
- Asset-under-management growth trajectory relative to the 18-20% FY27 target.
- Prioritize EV financing partnerships with commercial-vehicle OEMs, dealers, fleet operators and battery-leasing providers.
- Deploy a meaningful share of new branches in freight, logistics and industrial clusters where owner-operator and small-fleet demand is concentrated.
- Build EV-specific underwriting using vehicle utilization, battery health, route economics and fleet payment data rather than conventional collateral assumptions.
- Bundle loans with insurance, maintenance, telematics and charging or battery-finance offerings to improve customer retention and fee income.
- Increase collection and early-warning capacity alongside hiring to prevent rapid portfolio expansion from raising credit costs.