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Industrial sector · Auto OEM ecosystem

Debt advisory for Auto & Components.

Working capital for tier-1 and tier-2 auto suppliers with extended OEM payment cycles, term loans for capacity expansion, and ECB for auto exporters with USD revenue. We cover all major auto clusters — Chennai, Pune, Manesar, Pithampur, Sanand.

₹100 Cr+ mandates OEM-approved vendor pricing All major auto clusters
WORKING CAPITAL TERM LOANS PROJECT FINANCE STRUCTURED DEBT ECB NCD INDUSTRIAL AUTO & COMPONENTS SECTOR

How does BIG LOANS work with the auto industry?

BIG LOANS arranges ₹100 crore-and-above debt mandates across the Indian auto value chain — OEMs (Hyundai, Maruti, Tata Motors, Mahindra, Bajaj, Hero), tier-1 component suppliers (Bosch, Sundaram Clayton, Bharat Forge, Motherson), tier-2 suppliers and the broader auto-component ecosystem. Most common products: working capital for tier-1/2 suppliers with 45-90 day OEM payment cycles; term loans for capacity expansion at OEM-supplier clusters (Sriperumbudur, Oragadam, Manesar, Pithampur, Pune-Chakan); and ECB for auto exporters with natural USD revenue (Hyundai Motor India alone exports over 30% of production).

Section 01 — Auto & Components debt landscape

OEM-anchored ecosystem with deep supplier chain.

India's auto industry is structured around a small set of OEM anchors and a deep tier-1, tier-2 supplier ecosystem. Each major OEM — Hyundai (Chennai), Maruti Suzuki (Manesar + Gujarat), Tata Motors (Pune, Sanand, Jamshedpur), Mahindra (Pune, Nashik, Haridwar), Bajaj (Pune), Hero (Manesar) — anchors a regional cluster of approved suppliers.

OEM-supplier relationships drive most auto debt mandates. Tier-1 OEM-approved suppliers with long-term supply agreements get preferential bank pricing (25-50 bps tighter) because receivable quality is high. Tier-2 suppliers face working-capital cycles of 60-120 days and typically need consortium / multi-banking structures for ₹100 Cr+ limits.

Auto GDP
~7% direct
Auto exports
USD 15B+
Major clusters
6 in India
Tier-1 suppliers
500+ major
Lender appetite
Strong (OEM-linked)
Section 02 — Common funding situations

When auto & components businesses approach us.

Common funding situations across the auto value chain.

01

Tier-1 supplier working capital

OEM-approved supplier with long-term Maruti / Hyundai / Tata Motors supply contracts. ₹100-500 Cr multi-banking with attractive pricing.

02

Tier-2 supplier consortium

Mid-market component supplier with 60-120 day OEM payment cycle. 3-5 bank consortium for ₹100-300 Cr working capital.

03

Capacity expansion

New line at existing plant, additional shift capacity, automation upgrade for tier-1 supplier. Term loans ₹100-500 Cr, 5-8 year tenor.

04

OEM capex

New plant or major capacity addition by an OEM. ₹500 Cr to ₹3,000 Cr+ project finance, often syndicated, with sponsor equity 25-30%.

05

Auto exporter ECB

Hyundai Motor India, TVS, Bajaj Auto, Motherson — large exporters with USD revenue. ECB at SOFR + 150-300 bps.

06

EV transition capex

Existing ICE OEMs and suppliers adding EV manufacturing capability. New PLI alignment, sometimes ESG-linked financing through multilaterals.

Section 04 — Lender appetite

Strong appetite across auto value chain.

Auto is one of the highest-appetite lending sectors. PSU and private banks compete actively; foreign banks dominate ECB for exporters.

01

Auto-specialist lenders

Sundaram Finance (Chennai HQ — deep auto-finance expertise), Cholamandalam — strong tier-1/2 OEM-supplier finance.

02

Major private banks

HDFC, ICICI, Axis, Kotak — competitive on tier-1 OEM-approved suppliers.

03

PSU banks

SBI Auto vertical particularly strong; Indian Bank, IOB strong in Chennai cluster; BOM strong in Pune cluster.

04

Foreign banks

StanChart, HSBC, DBS, MUFG — most active for OEM and large tier-1 exporter ECB and trade finance.

05

NBFCs

Bajaj Finance — particularly strong with Bajaj Auto's own supplier ecosystem. Plus diversified NBFCs.

Section 05 — Our process

How auto & components mandates close.

Same 5-stage process for any large-ticket corporate debt mandate, applied to auto & components specifics.

01

Discovery & sector diagnostic

NDA, then a short call to understand the business model, key financial drivers, capital need. Sector-specific risk factors mapped early.

Week 1
02

Structuring & lender shortlist

Optimal facility mix, tenor, security. Lender shortlist tuned to sector appetite — banks for vanilla, NBFCs / AIFs for specialty structures.

Week 2 – 3
03

IM + lender outreach

Sector-grade Information Memorandum, financial model, market analysis. Pitched to shortlisted lenders in parallel.

Week 3 – 8
04

Competing term sheets & sanction

Multiple sanctions negotiated in parallel on pricing, covenants, security. Final lender(s) selected.

Week 8 – 12
05

Documentation & drawdown

Loan agreement, security creation, CPs satisfied, drawdown. Sector-specific compliances (RERA, FEMA, SEBI, etc.) handled along the way.

Week 12 – 16
Section 06 — FAQ

Auto & Components debt — FAQs.

Yes — 25-50 bps tighter working-capital pricing than non-approved vendors, given the receivable quality from long-term OEM supply contracts. Banks treat OEM-confirmed orders as near-investment-grade receivables.
Lenders compute MPBF based on the supplier's actual operating cycle: OEM payment terms (typically 45-90 days), inventory of raw materials and finished goods, and any tooling / capital advance arrangements. Tier-1 cycles run 45-90 days; tier-2 run 60-120 days.
Yes — EV capex often qualifies for separate PLI scheme benefits (PLI for Advanced Chemistry Cell, PLI for Auto sector). Lenders may also access multilateral ESG-linked refinance. Pricing benefits possible.
Yes — automatic route for capex, USD 750M cap per FY, tenor 3+ years, all-in cost cap SOFR + 500 bps. Particularly used by joint-venture OEMs whose foreign parent funds the greenfield via ECB.
Auto & Components mandate?

Let's structure your auto & components funding.

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Bigger Support, Brighter Future. India's specialist debt advisor for ₹100 Cr+ corporate funding mandates. Pan-India. Confidential. Senior banker-led.

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BIG LOANS is the trade name of [Legal Entity Pvt. Ltd.], CIN: [xxx], registered at [address]. BIG LOANS is a debt advisory and loan facilitation firm. It is not a bank, NBFC or any other lending institution registered with the Reserve Bank of India, does not accept public deposits, does not lend money on its own books, and does not issue any loan, credit facility or financial product directly. All loans, limits and credit facilities are sanctioned, disbursed and serviced solely by the relevant banks, NBFCs, AIFs and other regulated lenders, in accordance with their internal policies and applicable RBI / SEBI / IRDAI guidelines. BIG LOANS is empanelled as a Direct Selling Agent / Channel Partner with various banks and NBFCs and may earn sourcing fees from such lenders for successful disbursements. Any borrower fees are governed exclusively by a written engagement letter. Information on this website is general in nature and not financial, legal or tax advice. Please consult your CA / advocate before acting.

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