Aspirational India fuels auto loan surge as private consumption rises

New Delhi, Sep 22: As private consumption rises across the country, there has been a surge in auto loans for car ownership as people from tier 2, 3 cities and beyond opt for longer-tenure financing options to afford latest vehicles.

As per reports, auto companies like Maruti Suzuki, Hyundai, Mahindra and Tata Motors feel finance penetration to rise to up to 84 per cent this year from 75 per cent in the pre-pandemic era.

A leading digital marketing agency, Techmagnate, recently revealed significant shifts in auto finance-related search queries, like an increased focus on affordability and transparency, demand for alternative financing solutions, interest in electric vehicle financing and personalised and streamlined experiences.

The consumers in the country are engaging in informed auto finance decisions by conducting broader searches, using general terms like "car loan interest rates"or "auto loan eligibility”.

About 80 per cent of car purchases in the country are financed through bank loans or non-banking financial companies (NBFCs).