Govt subsidies for EVs promotes auto sales
The Indian Car Loan Market is forecast to grow at a CAGR of over 8% in value terms and to reach US$60 billion by FY2026, according to a ResearchAndMarkets report on “India Car Loan Market”.
Moreover, the shift from combustion engine vehicles towards electric vehicles, product launches, subsidies offered by the government on the purchase of electric vehicles, and high vehicle replacement rate are promoting sales of cars across India, which is consequently boosting the Indian Car Loan Market, said the report on 9 Mar 2021.
Major companies offering loans for the purchase of car in India are categorized into banks, original equipment manufacturers (OEMs), or non-banking financial company (NBFC). OEMs are coming up with various credit provisions to attract more buyers and borrowers and are offering loans based on individual needs for the purchase of cars in the country.
Public and private sector banks are the major dominators when compared to NBFC and OEMs due to a large customer base, better customer service, and competitive rates. However, the presence of NBFCs in non-metro and rural areas has helped in increasing the market share of NBFCs over the past few years.
The lenders include: Housing Development Finance Corporation Bank, Industrial Credit and Investment Corporation of India Bank, State Bank of India, Kotak Mahindra Prime Ltd, Axis Bank, Toyota Financial Services India Ltd, IDFC FIRST Bank, Mahindra & Mahindra Financial Services Limited, Shriram Transport Finance Co Ltd and Tata Motors. #banking #loans #manufacturing #investment /fiinews.com
