Mumbai, Feb. 13 -- Improving demand for commercial vehicles (CVs) and passenger vehicles (PVs), along with better fleet utilisation, supported growth in vehicle finance portfolios of auto-focused non-banking financial companies (NBFCs) in Q3FY26, and this momentum is likely to continue into the fourth quarter, according to a report by Centrum Institutional Research.

The report noted that a pickup in rural markets and improved passenger vehicle demand, aided by the GST rate cut, also helped boost tractor financing performance during the quarter. With demand conditions turning favourable across segments, the sector is expected to carry forward the positive traction into Q4FY26.

It stated "improving PV demand due to GST rate cut, along wit...