Mumbai: Kotak Mahindra Prime, the auto financing arm of Kotak Mahindra Bank, is betting big on the SUV and used car segment to expand its ₹30,000-crore book. The financing company expects the festive season to bring about a revival in the auto segment, which is seeing a sudden dip.
The lender may also look at tailor-made financing schemes to lure customers.
“Discounts have started for most brands,” said Shahrukh Todiwala, whole-time director, Kotak Mahindra Prime. “This, coupled with tailor-made financing schemes, is likely to spur the market ahead of the festive season. Good monsoons will be a positive trigger which will improve rural demand as well. Maximum auto sales happen in the last six months of the year and we are entering that period.”
Todiwala added that he expects the auto industry to grow in single digit this year.
“Looking at the first quarter trend, we expect the auto industry to post single digit growth this year,” he said. “Auto is a cyclical business. After one or two high-growth years, the industry consolidates for some time and then starts to grow again. What we are seeing right now is the consolidation phase.”
Todiwala added that for the first three months of this financial year there has only been 3% growth in dispatches from manufacturers. Inventories are going up at the dealership but he expects the pile-up to get cleared in the festive season.
