Executive Summary
The automotive finance landscape in India is currently witnessing a profound transformation, spurred by a confluence of factors including evolving consumer preferences, the ascent of electric vehicles, and the burgeoning presence of fintech enterprises. Amidst this dynamic backdrop, used car financing has emerged as a pivotal force, signaling a significant shift in consumer attitudes towards pre-owned vehicles.
Delving deeper into the Indian used car financing market, its intricacies can be delineated across various dimensions such as vehicle type, financier, and sanctioned amounts. This market landscape is fiercely competitive, with banks and non-banking financial companies (NBFCs) vying for dominance. Notably, banks commanded the lion's share of the market in FY2021, closely followed by NBFCs.
Banks, in their bid to capture more market share, are actively devising tailored credit offerings to attract a wider pool of buyers and borrowers. These institutions are extending loans tailored to individual needs, fostering accessibility and affordability in the used car segment. Public and private sector banks stand out as the primary powerhouses in this arena, outpacing their NBFC counterparts.
Rising Demand and Market Dynamics: An increased emphasis on affordability and transparency, along with a growing demand for alternative financing solutions, is reshaping the used car financing industry. With factors like the implementation of BS-VI norms driving up the prices of new vehicles, more Indian drivers are turning to the used car market, resulting in a notable increase in sales.
Consumer Trends and Preferences: In 2023, three out of every five customers opted to finance their vehicle purchases, showcasing a clear trend towards financial flexibility. Notably, residents in Tier 2 and Tier 3 cities, as well as urban areas, are increasingly preferring the convenience of car financing. Additionally, there has been a convergence in purchasing behaviors across metro and non-metro cities, with younger demographics showing a greater inclination towards purchasing used cars based on financial needs and preferences.
Future Outlook
The future outlook for India's used car financing market appears highly promising, driven by several key factors such as a robust economic upturn, coupled with a steady rise in middle-income households and shifting consumer’s behaviours towards car financing. Currently, the used car financing market in India is largely fragmented, dominated by customer-to-customer (C2C) transactions and "unorganized" players, including dealers operating from small outlets. However, industry forecasts predict a shift towards more organized financing, with organized dealers expected to increase their market share to 45% by 2025. This shift is driven by organized players' efforts to differentiate themselves by offering customers more attractive and accessible financing options.
Scope of Work
Makreo Research recently published an extensive report titled "India Used Car Financing Market Competitive Landscape," offering a thorough examination of key players within the Indian used car financing sector. The report delves into prominent entities in the market, such as Sundaram Finance Limited, Toyota Financial Services India Limited, Mahindra & Mahindra Financial Services Limited, Maruti Suzuki True Value, CFSPL, Cholamandalam Investment and Finance Company Limited (Chola), Muthoot Finance Ltd., HDB Financial Services Ltd., Hero FinCorp, among others. It provides insights on topics like mergers, acquisitions, funding timelines, and detailed company profiles, with a focus on financial aspects. The report is designed to furnish stakeholders and industry professionals with a comprehensive understanding of the evolving dynamics within this rapidly expanding and evolving segment in India.
Which companies are the primary participants in the India Used Car Financing Market?
What does the competitive landscape looks like among the India Used Car Financing Players?
How does the market value of key players in the India Used Car Financing Market relate to their revenue?
What characterizes the investment environment among the key players?
What notable business accomplishments are attributed to these key players?
What significant mergers and acquisitions have occurred throughout the timeline of the India Used Car Financing Market?
What is the current funding situation among different players in the India Used Car Financing Market?
Report Synopsis
Competition Overview
1.1. Market Mergers /Acquisitions/Investments, 2018 - 2023
1.2. Funding Timeline, 2018 - 2023
2.1. Company Profile: Sundaram Finance Limited
2.2. Company Profile : Toyota Financial Services India Limited
2.3. Company Profile : Mahindra & Mahindra Financial Services Limited
2.4. Company Profile : Maruti Suzuki True Value
2.5. Company Profile : Cholamandalam Investment and Finance Company Limited (Chola)
2.6. Company Profile : Droom Technology Limited (Droom Credit)
2.7. Company Profile : Blue Carz
2.8. Company Profile : Muthoot Finance Ltd.
2.9. Company Profile : HDB Financial Services Ltd.
2.10. Company Profile : Hero FinCorp.
2.11. Company Profile: Cars 24 Financial Services Private Limited
Sundaram Finance Limited Total Revenue, FY 2018 - FY 2023
Sundaram Finance Limited Profit after Tax , FY 2019 - FY 2023
Sundaram Finance Limited Revenue from Operations, FY 2018 - FY 2023
NPA Assets as a % to Advances in the Respective Segments, FY 2020 - FY 2023
Sundaram Finance Limited Personal Loans Sectoral Exposure, FY 2022 - FY 2023
Sundaram Finance Limited Concentration of Credit Risk (%), by Geographical Risk, FY 2018 – FY 2023
Sundaram Finance Limited Concentration of Credit Risk (%), by Asset Class, FY 2018 – FY 2023
Sundaram Finance Limited Financial Assets, FY 2018 – FY 2023
Toyota Financial Services India Limited Total Income, 2019 - 2023
Toyota Financial Services India Limited Total Expenditure, 2019 - 2023
Toyota Financial Services India Limited India Loans, 2020 - 2023
Toyota Financial Services India Limited Financial Highlights, 2020- 2023
Mahindra Financial Services Limited Standalone Revenue, FY 2018 - FY 2023
Mahindra Financial Services Limited Consolidated Revenue, FY 2018 - FY 2023
Mahindra Financial Services Limited Net Worth, FY 2019 - FY 2023
Mahindra Financial Services Limited Profit After Tax ,FY 2019 - FY 2023
Mahindra Financial Services Limited Breakdown of Assets, 2023
Mahindra Financial Services Limited Total Assets, FY 2019 - FY 2023
Mahindra Financial Services Limited New and Used Vehicles Standalone Statements , 2022 - 2023 (INR Crores)
Mahindra Financial Services Retail Loans By Sectors, 2022 - 2023 (INR Crores)
Maruti Suzuki True Value Brand Awareness- Current Owners, 2021
Maruti Suzuki True Value Brand Awareness- By Segments, 2021
Cholamandalam Total Revenue From Operations, 2018 - 2023
Cholamandalam Total Income , 2018 - 2023
Cholamandalam Vehicle Finance – Financial Disbursements, FY 2019 - FY 2023
Cholamandalam Diversified Asset Portfolio, 2023
Cholamandalam Vehicle Finance – Income, FY 2019 - FY 2023
Cholamandalam Vehicle Finance –Loan Losses & Provisions, FY 2019 - FY 2023
Muthoot Finance Ltd. Total Revenue, FY 2019 - FY 2023
Muthoot Finance Ltd. Total Net Worth , FY 2019 - FY 2023
Muthoot Finance Ltd. Profit After Tax, FY 2019 - FY 2023
Muthoot Finance Ltd. Loan Assets , FY 2019 - FY 2023
Muthoot Finance Ltd. Financial Summary, 2022 - 2023
Muthoot Finance Ltd. Assets Pledged as Security, 2018 - 2023
Muthoot Finance Ltd. Assets Pledged as Security - Property, Plant and Equipment, 2018 - 2023
Muthoot Finance Ltd. Interest on Vehicle Loans measured at amortised cost, 2020 – 2023
HDB Financial Services Ltd. Total Revenue, FY 2019 - FY 2023
HDB Financial Services Ltd. Total Income, FY 2019 - FY 2023
HDB Financial Services Ltd. Profit Before Tax , FY 2019 - FY 2023
HDB Financial Services Ltd. Profit After Tax , FY 2019 - FY 2023
HDB Financial Services Ltd. Financial Performance, FY 2019 - FY 2023
HDBFS Sector wise Exposure - Vehicle Auto Loans , 2022 - 2023
HDB Financial Services Ltd. Assets Under Management, FY 2019 - FY 2023
HDBFS Sector-wise Distribution of Credit Impaired Loans, 2018 - 2023
Hero FinCorp. Total Revenue From Operations, 2018 - 2023
Hero FinCorp. Total Income, 2018 - 2023
Hero FinCorp. Profit / Loss Before Tax , 2018 - 2023
Hero FinCorp. Total Expense, 2018 - 2023
Hero FinCorp. Financial Summary, FY 2022 - FY 2023
Hero FinCorp. Sector wise Exposure – Vehicle/Auto Loans , 2022 - 2023
Hero FinCorp. Auto Loans Sector NPAs, 2018 – 2022
Cars24 Revenue, FY 2018 -2023
Cars24 FSPL Profit/Loss Before Tax, FY 2022 – FY 2023
Cars24 Financial Services Private Limited Revenue, FY 2022 – FY 2023
Cars24 Financial Services Private Limited Key Financial Indicators, FY 2022(A) – Q1FY24 (P)