Delhi Delhi. As private consumption rises across the country, auto loans for car ownership have surged as people in tier 2, 3 cities and beyond opt for longer-term financing options to buy the latest vehicles. According to the report, auto companies such as Maruti Suzuki, Hyundai, Mahindra and Tata Motors feel that finance penetration will rise to 84 per cent this year, up from 75 per cent in the pre-pandemic era.
Techmagnet, a leading digital marketing agency, recently revealed significant shifts in search queries related to auto finance, such as a greater focus on affordability and transparency, demand for alternative financing solutions, interest in electric vehicle financing, and personalized and streamlined experiences. Consumers in the country are making informed auto finance decisions by conducting comprehensive searches using common terms such as “car loan interest rates” or “auto loan eligibility”. Nearly 80 percent of car purchases in the country are financed through bank loans or non-banking financial companies (NBFCs).
According to data from JATO Dynamics, aspiring India is now driving the auto loan industry. As per a Bank of Baroda (BoB) report, private final consumption expenditure (PFCE) in India grew by 12.4 per cent in the April-June quarter of this fiscal, as against 8.1 per cent in Q1FY24, due to a sustained rise in consumer discretionary spending and favourable price effects.
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