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flag Indian auto NBFCs recovered in Q2 FY26 via non-vehicle lending, led by Sundaram Finance.

flag Indian auto NBFCs showed gradual recovery in loan disbursements during Q2 FY26, driven by diversification into non-vehicle lending like SME, personal, and home loans, with Sundaram Finance leading growth at 18.3% YoY. flag Shriram Finance and MMFSL improved sequentially, while Cholamandalam saw minimal growth due to rebalancing. flag Sustained progress depends on commercial vehicle demand and rural economic recovery, with diversified lenders better positioned amid ongoing challenges in traditional vehicle financing.

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