Vehicle sales are hitting record highs with record sales. As vehicle sales record highs in the first quarter, loans too are surging
Vehicle loans surpassed the Rs 5 lakh crore mark in June, growing by 23 percent to hit Rs 5.23 lakh crore in June, compared to the same period the previous year. An analysis of the last five years’ data shows that the growth in vehicle loans was most pronounced in the first quarter of this fiscal year.
For comparison, in June 2022, vehicle advances grew by 18 percent, while in June 2021 and June 2020, the growth rates were 11 percent and 7 percent, respectively, as per RBI data.
The total vehicle loan outstanding climbed from Rs 3.65 lakh crore in May 2021 to Rs 4.16 lakh crore in May 2022, and further to Rs 5.09 lakh crore as of May 19, 2023 and Rs 5.23 lakh in June.
Banks and vehicle dealers are gearing up for the upcoming festive season and lining various schemes, including discounts on interest rates, reduced processing fees on loans, and competitive vehicle prices.
Bumper sales
In August, the passenger vehicle wholesale market achieved an all-time high monthly sales record with 360,897 units sold, surpassing the previous record set in September 2022 at 355,400 units. This signifies a 9.7 percent growth compared to the same month last year when sales were at 326,980 units.
Retail sales for August also saw a robust 7.3 percent increase, with 343,000 units sold. From April to August, the industry recorded a total of 1.709 million units sold, marking an overall growth rate of 8.1 percent. Maruti Suzuki, a prominent player in this success, experienced a remarkable 16.4 percent growth in passenger vehicle wholesales, with 156,114 units sold in August compared to 134,166 units in the same month last year.
