Spurring Car Sales and Reduction in Average Car Ownership Period to Drive Growth of Car Finance Market in India: Ken Research

September 2015  

The car finance industry in India will continue to grow at a considerable rate in the coming years with increased adoption of cash-less payments and internet and mobile banking in the country, thus providing ease of access of payment and financing facilities. It has been estimated that the market will grow at a CAGR of 13.5% to cross INR 1.8 trillion by FY’2020. The future of this industry is predicted to develop a fully inter-connected and flexible system which uses internet as a major source of operation. Spurring car sales, rapid advancements in technology and reducing average car ownership period will drive the growth of this industry in the future.

Furthermore, with upcoming OEMs in Indian market, technological changes such as better and transparent online financing, e-mail alerts, better payment options and improved information technology leading to lesser risks and others could help induce momentum into the market. Banks and NBFCs are expected to increase their penetration into the untapped potential of rural areas. Online financing and other new business models emerging in this space are also expected to gain popularity with more number of smartphone and internet users in India.

According to an industry veteran, “scope of mobile solutions in the payment industry in India has been expanding rapidly from metropolitan areas to tier 2 and 3 cities with increased merchant acquisition and is expected to revolutionize the payment and finance systems in the country.”

“Internet and mobile technology is essential to promote the payment and financing sector to the next level of growth in the country. The advent of OEMs will look forward to increase number of organized dealers in the market. Use of data and technology will reduce risks, costs and provide a higher reach and flexibility in transactions. However, in spite of the efforts, since majority of the population in the country resides in the rural areas where technology penetration is still in its nascent stage, the challenge to extend such services will be considerable even after significant improvement in IT infrastructure facilities”, according to the Research Analyst, Ken Research.

The report titled India Car Finance Industry Outlook to 2020” provides detailed overview on the car finance market and help the readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, car finance providers and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.

 

 

Key Topics Covered in the Report:

Car Finance

-          Market Size by Loans Disbursed, Number of Cars Financed

-          Market Segmentation by

  • Online- Offline
  • Geography
  • Term of the Loan
  • Seasonal Demand

-          Trends and Development

-          Issues and Challenges

-          SWOT

-          Competition and Market Share

-          Important Mergers and Acquisitions

-          Growth Drivers

-          Government Rules and Regulations

-          Pre-Requisites to Enter the Market

-          Future Outlook

-          Macro Economic Parameters

 

Key Products Mentioned in the Report

New car finance: Online and Offline

Pre-owned car finance: Online and Offline

Companies Covered in the Report

HDFC Bank

ICICI Bank

Kotak Mahindra Bank

State Bank of India

Axis Bank

Magma Finance

Reliance Commercial Finance

Mahindra Finance

Tata Capital

Sundaram Finance

Related Reports:

The US Used Car Market Outlook 2016 - Driven by Late Model Used Cars

India Used Car Market Outlook to 2020 - Growing Preference and Emergence of Web Aggregators

India Online Loans Market Outlook to 2019 - Industry Transformation by the Advent of Web Aggregators

 Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249