Loans for purchasing cars a rising trend in India, finds Jato Dynamics

Fleet sales, which comprise car sales to companies, organisations, and government entities that own a fleet of cars, have also seen a significant increase

More and more Indians are purchasing cars on loans now vis à vis the pre-Covid-19 period, with finance penetration for passenger vehicles (PVs) increasing from 72-75 per cent in 2019 to 77-80 per cent in 2023, according to Jato Dynamics's data, which has been reviewed by Business Standard.

“The availability of credit itself, with more banks coming in, the rise in rural sales with more NBFCs (non-banking financial companies) participating, the rise in the share of fleet sales, the drop in interest rates, and banks coming out with tailor-made products for car-buyers — all have contributed to this growth,” Shashank