India Used Car Loan Market to Grow at a CAGR of over 11% till FY2027F
Lower interest rates,
increasing ownership of used cars, etc. to drive India used car loan market.
According to TechSci Research
report, “India
Used Car Loan Market, By Vehicle Type
(Hatchback, SUVs & Sedans), By Financier (Banks, NBFCs (Non-Banking
Financial Companies) & OEM), By Percentage of Amount Sanctioned (Up to 25%;
25-50%; 51-75%; Above 75%), By Tenure (Less than 3 Years, 3-5 Years & More
than 5 Years), By Region, Competition, Forecast & Opportunities, FY2027F” the India used car loan market is
projected to grow at a CAGR of over 11% in value terms and to reach around USD16
billion by FY2027F. With lower interest rates, rising ownership of used cars,
increasing disposable income, etc. the market has witnessed an increase in demand
for used car loans in the country. Choosing a used car loan is a wise decision
that provides buyers with good value for money. With rising disposable income
and urbanization, the customers no longer choose to keep a car for several
years and always prefer to upgrade with the latest models. Companies such as
CarDekho, CARS24, Spinny, OLX Auto(Cars), Droom Credit, and others have
launched digital platforms for used car buyers and sellers to provide servicing
and warranty facilities, as well as an easy instant and paperless loan
experience, so that a potential buyer can simply ask the dealer for loan offers
on any pre-inspected car and the dealer can also check the buyer's eligibility
with multiple banking partners on the spot with a few clicks. People can also
begin the loan application process in seconds by uploading KYC and other
required documents to these platforms.
As a result of the COVID-19
outbreak in the second half of March, FY2020, and the subsequent restrictions
imposed as a result of continuous lockdowns and disruptions in India's travel
and transportation networks, there has been an increase in the population's need
for personal vehicles such as used cars. However, the used car market
experienced supply constraints because people did not sell their vehicles as
they did prior to the pandemic, affecting exchanges and demand for used car
loans. The COVID-19 pandemic also had an impact on the
country's per capita income, so drivers and small-scale fleet management
companies were looking for more cost-effective investments, such as purchasing
used cars as a means of small business. This mode proved to be very cost effective
for many small logistics and transportation business owners, as well as those
who experienced losses in their other businesses. Due to financial constraints,
these small-scale fleet management companies preferred to purchase used cars
through used car loans during the pandemic.
Browse over 33 market
data Figures spread through 92 Pages and an in-depth TOC on " IndiaUsed Car Loan Market ” .
The India used car loan market is
divided into by vehicle type, by financier, by percentage of amount sanctioned,
by tenure, by region and by company. Based on the vehicle type, the India used
car loan market is segmented into Hatchbacks, SUVs and Sedans. Among these, the
hatchback vehicle type has dominated the used car loan market in the country,
holding a share of more than 49 percent in the market in FY2021, and will
continue to dominate in the forecast period as well. This is due to the
benefits it provides, such as riding comfort, safety, budget, and lower noise
and vibration when compared to other competitors in the same segment.
On the basis of region,
the India used car loan market is divided into North South East and West. Among
which, the North region in the country is projected to grow at the fastest pace
than any other regions. The Northern region, which includes Punjab, Chandigarh,
Haryana, Himachal Pradesh, J&K, Delhi, Uttar Pradesh, and Rajasthan,
contributed approximately 33-35 percent of total used car sales in India in
FY2020, implying that used car loan market players should focus on the North
region to achieve maximum growth.
In terms of
company, major players operating in India used car loan market include HDFC
Bank Ltd., State Bank of India, ICICI Bank Ltd., Shriram Transport Finance Co. Ltd., Mahindra &
Mahindra Financial Services Limited and others. In FY2021, HDFC Bank Ltd. Leading
players are focusing on expanding their product portfolios to maintain
sustainable growth in the market. The companies are also expanding their reach
through acquisition and mergers.
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“Digitalization is the buzzword in
India's used car market, and the industry has shifted its focus to providing
potential buyers with a virtual experience. Big Boy Toyz, which sells and buys
premium and exotic luxury used cars, has launched a new smartphone app that
allows customers to browse a selection of used automobiles, book appointments,
make payments, and apply for loan within seconds. This is a significant market
development that will contribute to the growth of the country's used car loan
market during the forecast period,” said Mr. Karan Chechi, Research Director
with TechSci Research, a research-based global management consulting firm.
““India Used Car Loan Market,
By Vehicle Type (Hatchback, SUVs & Sedans), By Financier (Banks, NBFCs
(Non-Banking Financial Companies) & OEM), By Percentage of Amount
Sanctioned (Up to 25%; 25-50%; 51-75%; Above 75%), By Tenure (Less than 3
Years, 3-5 Years & More than 5 Years), By Region, Competition, Forecast
& Opportunities, FY2027F” has evaluated the future growth potential of India
used car loan market and provides statistics & information on market size,
structure and future market growth. The report intends to provide cutting-edge
market intelligence and help decision makers take sound investment decisions.
Besides, the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in the India used car loan
market.
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