India used car loan market is forecast to grow at
a CAGR of over 11% in value terms and to reach around USD16 billion by FY2027F.
Anticipated growth in the market can be attributed to growing disposable income
and increasing ownership of used cars. Moreover, factors such as increased
price of new cars, government regulations, etc. are driving the India used car
loan market. Companies
provide used car loans for a wide range of vehicles, including hatchbacks,
SUVs, and premium sedans. They are extending loans up to 95% of the used car
value, flexible EMI repayment options, quick loan disbursement, flexible
tenure, and minimal paperwork, which is driving the used car loan market.
The India used car loan market can be segmented based
on vehicle type, financier, percentage of amount sanctioned, tenure, region and
company. In terms of vehicle type, the India used car loan market can be
segmented into Hatchbacks, SUVs, and Sedans. Among which, the hatchback vehicle
type has dominated the India used car loan market and will continue to dominate
the market in the forecasted period as well. This is due to its advantages like
riding comfort, safety, and lower noise, vibration in comparison to other
counterparts in the same segment.
In term of
financier, the India used car loan market is categorized into Banks, NBFCs
& (OEMs). Among these, banks accounted for the majority of market share in
FY2021 followed by NBFCs. Banks are developing various credit provisions in
order to attract more buyers and borrowers, and they are offering loans for the
purchase of used cars in the country based on individual needs. Due to a large
customer base, better customer service, and competitive rates, public and
private sector banks are the major dominators when compared to NBFC and OEMs. However,
the presence of NBFCs in non-metro and rural areas has aided in increasing NBFC
market share in recent years.
Individuals'
increasing disposable income has allowed them to switch from one car to another
in a relatively short period of time. This has resulted in a significant
reduction in the average time spent on keeping a car in India. As a result,
used car buyers can get a well-maintained and relatively newer car with
benefits such as same-day delivery, funding for up to 8 years old cars, and 100
percent paperless & digital complete loan and RC Transfer support. As a
result, the current generation's preference for used car loans is growing day by
day. Car ownership has decreased significantly over the years, from 5-6 years
for mass-market cars to less than 3 years for premium cars, from 5-6 years a
few years ago. This has improved the quality of available cars in the used car
segment because these vehicles are well maintained and equipped with
cutting-edge technology.
Some of the
leading players in the India used car loan type market are HDFC Bank Ltd.,
State Bank of India, ICICI Bank Ltd., Shriram Transport Finance Co. Ltd.,
Mahindra & Mahindra Financial Services Limited and others.
Years
considered for this report:
Historical
Years: FY2017-FY2020
Base Year:
FY2021
Estimated
Year: FY2022E
Forecast
Period: FY2023F–FY2027F
Objective of
the Study:
- To analyze the historical growth in the market size of the India used car loan market from FY2017 to FY2021.
- To estimate and forecast the market size of the India used car loan market from FY2022E to FY2027F and growth rate until FY2027F.
- To classify and forecast India used car loan market based on by vehicle type, by financier, by percentage of amount sanctioned, by tenure, by company and by region.
- To identify the dominant region or segment in the India used car loan market.
- To identify drivers and challenges for the India used car loan market.
- To examine competitive developments such as expansions, new product launches, mergers & acquisitions, etc., in the Indian used car loan market.
- To conduct pricing analysis for India used car loan market.
- To identify and analyze the profiles of leading players operating in India used car loan market.
- To identify key sustainable strategies adopted by market players in India used car loan market.
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TechSci Research performed both primary as well as
exhaustive secondary research for this study. Initially, TechSci Research
sourced a list of financiers across the country. Subsequently, TechSci Research
conducted primary research surveys with the identified companies. While
interviewing, the respondents were also enquired about their competitors.
Through this technique, TechSci Research could include the financiers which
could not be identified due to the limitations of secondary research. TechSci
Research analyzed the financiers, and presence of all major players across the
country.
TechSci Research calculated
the market size of India used car loan market using a bottom-up approach,
wherein data for various segments were recorded and forecast for the future
years. TechSci Research sourced these values from the industry experts and
company representatives and externally validated them through analyzing
historical data of these vehicle types and other segments for getting an
appropriate, overall market size. Various secondary sources such as company
websites, news articles, press releases, company annual reports, investor
presentations, and financial reports were also studied by TechSci Research.
Key Target Audience:
- Financiers, and end-users
- Market research and consulting firms
- Government bodies such as regulating authorities and policymakers.
- Organizations, forums, and alliances related to used car loan.
The study is
useful in providing answers to several critical questions that are important
for the industry stakeholders such as financiers, end-users, etc., besides
allowing them in strategizing investments and capitalizing on market
opportunities.
Report Scope:
In this
report, India used car loan market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
o
India Used Car Loan Market, By Vehicle Type:
o
Hatchback
o
SUVs
o
Sedans
o
India Used Car Loan Market, By Financier:
o
Banks
o
Non-Banking Financial Companies (NBFCs)
o
OEM
o
India Used Car Loan Market, By Percentage of Amount
Sanctioned:
o
Upto 25%
o
25-50%
o
51-75%
o
Above 75%
o
India Used Car Loan Market, By Tenure:
o
Less than 3 years
o
3-5 Years
o
More than 5 Years
o
India Used Car Loan Market, By Region:
o
North
o
West
o
South
o
East
Competitive
Landscape
Company Profiles: Detailed analysis of the
major companies present in India used car loan market.
Available
Customizations:
With the given market data, TechSci
Research offers customizations according to a company’s specific needs. The
following customization options are available for the report:
Company Information
Detailed analysis and profiling of
additional market players (up to five).