New Delhi, Dec 10 || Assets under management (AUM) of vehicle loans at India's non-banking financial companies (NBFCs) is projected to grow at a steady 16-17 per cent annually over the current and next fiscals to Rs 11 lakh crore by the end of March in 2027, supported by policy measures and macroeconomic tailwinds, a report said on Wednesday.
While sub-segments of vehicle loans will see differential growth trends, the growth of used vehicle loans will continue to outpace that of new vehicle loans.
"The vehicle finance business is cyclical and has a high correlation with macroeconomic trends. For the record, India’s gross domestic product (GDP) is expected to grow 7 per cent this fiscal, up from the 6.5 per cent forecast earlier, after a faster-than-expected climb of 8.2 per cent in the second quarter," Crisil Ratings said in its report.
Meanwhile, growth is expected to remain healthy next fiscal, too, at 6.7 per cent.