Latest news with #vehiclefinancing
Yahoo
19-05-2025
- Automotive
- Yahoo
Hyundai-PIF Saudi auto plant set to drive local vehicle financing market
Saudi Arabia's vehicle financing sector is expected to see significant growth following the announcement that Hyundai Motor Company and the Public Investment Fund (PIF) have begun construction of a new automotive manufacturing facility at the King Salman Automotive Cluster in King Abdullah Economic City. Structured as a joint venture, with PIF holding a 70% stake and Hyundai the remaining 30%, the plant will have an annual production capacity of 50,000 vehicles, including both internal combustion engine (ICE) and electric vehicles (EVs). The majority of output is expected to serve the domestic market, where Hyundai already maintains one of the largest market shares, particularly in the passenger vehicle segment. The new production capacity is expected to directly support the expansion of Saudi Arabia's vehicle financing market, with implications for both retail and fleet finance providers. Analysts expect increased availability of locally manufactured vehicles to improve affordability and lower lead times, enabling lenders to expand consumer credit offerings while also supporting government procurement schemes and leasing models. According to the Ministry of Industry and Mineral Resources, the facility is part of Saudi Arabia's broader National Industrial Strategy, which aims to localise production and attract global OEMs. The government's vehicle localisation drive is aligned with efforts to boost domestic content and reduce reliance on imports—factors that are likely to influence financing structures, pricing models, and risk assessments across the lending market. The Local Content and Government Procurement Authority is expected to play a key role in supporting demand through large-scale procurement programmes. These may include fleet purchases from public sector entities, creating opportunities for Islamic leasing (ijara) and other structured finance products designed to align with Saudi Arabia's Vision 2030 localisation targets. Hyundai's decision to invest in domestic production follows extensive engagement with Saudi stakeholders, including a 2022 memorandum of understanding and a series of 2023 meetings with senior government officials. The plant's output will also support PIF's existing automotive investments, including Ceer and Lucid Motors, and is projected to contribute USD 5 billion to the Kingdom's GDP by 2045. "Hyundai-PIF Saudi auto plant set to drive local vehicle financing market" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Entrepreneur
08-05-2025
- Automotive
- Entrepreneur
91Trucks Secures $5M Series A Funding Led by Arkam Ventures
With the rising demand for new and pre-owned commercial vehicles across Tier 2 and 3 cities, 91Trucks is building an India-focused platform for small fleet operators and first-time buyers, providing access to vehicle discovery and buying, financing, and comprehensive post-purchase support. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. 91Trucks, a full-stack commercial vehicle platform, announced that it has raised USD 5 million in Series A funding led by Arkam Ventures, with participation from existing investors, Titan Capital Winners Fund, Sparrow Capital, and Atrium Angels. With the rising demand for new and pre-owned commercial vehicles across Tier 2 and 3 cities, 91Trucks is building an India-focused platform for small fleet operators and first-time buyers, providing access to vehicle discovery and buying, financing, and comprehensive post-purchase support. According to the company, the funds raised will be used to expand its product and technology capabilities, scale its team, and expand its offline retail footprint to more than 20 stores. Founded in October 2022 by Siddharth Sharma, Vikas Sharma, and Abhishek Gautam, 91Trucks offers a full-stack platform that provides end-to-end support for used truck buyers. The company also handles the entire process, including providing access to affordable financing, handling insurance, fitness checks, and RTO transfers, ensuring a seamless and reliable ownership experience. In the next 3 years, 91Trucks is targeting to sell 10,000 CVs annually. Announcing the fund raise, Siddharth Sharma, CEO and Cofounder, 91Trucks said, "Over 55 per cent of CV sales in India comprise of small commercial vehicles, primarily used for last mile delivery and owned by small fleet owners and driver operators. We are on a mission to organize and grow this segment. We are building a full-stack platform for fleet operators, removing the existing frictions plaguing the CV industry. In the last two years, our revenue has grown by 8x and with this funding, we will accelerate our physical footprint across Tier 2 and 3 cities, invest in technology, particularly in AI, and strengthen our team. We are thrilled to have Arkam as well as existing investors join us on this journey." According to Bala Srinivasa, Managing Director at Arkam Ventures, "As India charts to become an USD 8 trillion economy over the next decade, logistics will be a key driver of this expansion, especially driven by trends like quick commerce. India's logistics and transportation ecosystem comprises small fleet operators and driver owners who move 80 per cent of India's goods, yet face persistent challenges in accessing high-quality used vehicles and financing. We are delighted to partner with a strong 91Trucks founding team that is using their past experiences to reimagine India's used truck ecosystem via a tech-led full-stack solution that eliminates massive inefficiencies. Their ability to integrate technology with offline retail brings efficiency and trust to a market that has historically lacked both." Shiv Kapoor, Vice President at Titan Capital Winners Fund, said, "91Trucks is approaching this big market with a phygital solution, which fits well for India. Their ability to build a trusted brand in this space will give them the right to offer not just the vehicles but allied services in a one-stop shop approach. We have seen with the initial stores how buyers resonate with their offering. The founders are a great fit for this business as they understand the biggest pain points and opportunities that they can tackle in a tech-first way."
