The auto finance industry in India is undergoing a significant transformation driven by a convergence of factors. Some of these factors include evolving consumer preferences, the growing popularity of electric vehicles, the entry of new fintech companies, and automakers’ pursuit of new revenue streams. This disruption is also reshaping the search behavior of consumers, leading to a shift in the types of information they seek online.

An analysis of consumer search trends by India’s leading digital marketing agency, Techmagnate, has revealed significant shifts in auto finance-related search queries, for instance:

Instant Apply

An increased focus on affordability and transparency

Demand for alternative financing solutions

Interest in electric vehicle financing

Personalized and streamlined experiences

These insights corroborate a new study recently released by the Reserve Bank of India (RBI), which shows that people are taking more loans to buy cars instead of homes. This is because cars are becoming more popular, and people want to have a personal mode of transportation.

The RBI data shows that car loans have increased by 137% in the past three years. This has made car loans the second-largest loan segment, after home loans.

This dynamic transformation in the auto loan industry is driven by a confluence of factors, including rising demand for electric vehicles, expanding accessibility in Tier 2 and Tier 3 cities, and the rapid adoption of digital technologies. To effectively navigate this evolving landscape, it is crucial to stay abreast of key trends shaping the industry.

Auto Finance Trends in India

Rising demand for electric vehicles: The Indian government is promoting the adoption of electric vehicles (EVs) through a number of initiatives, including subsidies and tax exemptions. This is expected to lead to an increase in demand for car loans for EVs.

Expansion of car loans to Tier 2 and Tier 3 cities: The demand for car loans is increasing in Tier 2 and Tier 3 cities as disposable incomes rise and car ownership becomes more affordable.

Digitalization: The auto finance industry is becoming increasingly digitized, with more and more lenders offering online applications and approvals.

Understanding the Auto Finance Search Trends in India

To further analyze and understand these trends, we need to further delve into the understanding of consumer behavior. According to the Auto Finance Search Trends Report – 2023 released by Techmagnate, Indian consumers are increasingly engaging in informed auto finance decisions by conducting broader searches using general terms like “car loan interest rates“or “auto loan eligibility“instead of relying solely on brand-specific queries.

This shift reflects a growing awareness of the available options and a willingness to compare and contrast the offerings of different providers.

The increasing popularity of electric vehicles is also influencing search behavior, with consumers seeking comprehensive information on financing solutions tailored to these eco-friendly vehicles. They are actively seeking details on interest rates, loan tenures, and eligibility criteria to make informed decisions about financing their electric vehicle purchases.

Affordability and transparency are paramount in consumers’ auto finance search patterns. They are keen on locating options with low-interest rates, flexible repayment plans, and transparent fee structures to minimize their financial burden.

Additionally, consumers are increasingly seeking personalized auto finance solutions that align with their unique needs and preferences. They desire lenders who can provide tailored recommendations and streamline the application process to enhance their overall experience.

Auto Finance Market Size in India

The Indian used car financing market is expected to grow at a CAGR of around 11% during the forecast period (2022-2027).This growth is being fueled by a number of factors, including rising disposable incomes, a growing middle class, and the increasing popularity of personal vehicles.

As a result of these factors, consumers are becoming more informed about their auto finance options and are willing to compare offerings from different providers. This change is reflected in the growing share of non-brand searches in the auto finance industry.

For instance, in FY’22, brand searches accounted for 46.54% of the total search volume, while non-brand searches accounted for 53.46%. However, in FY’23, non-brand searches grew at a faster rate than brand searches and now account for over half of all auto finance search volume. This trend is likely to continue as consumers become increasingly savvy about their auto finance options.

Key Companies and Market Share Insights: Search Trend Report

In an in-depth exploration of the auto finance industry, a comprehensive analysis of over 12,000 keywords was conducted to unveil brand and non-brand trends, query patterns, and growth opportunities. This detailed examination of auto finance search trends provides valuable insights that can empower industry leaders to gain a deeper understanding of the market and make informed decisions.

The Top 10 Auto Finance Brands in India

HDFC Bank is the leading auto finance brand in India, with a market share of 44.84% in FY’23.

SBI and ICICI Bank are the other two major auto finance brands in India, with market shares of 20.68% and 11.20%, respectively.

Shriram Finance, Mahindra Finance, and Bajaj Finserv are the leading non-banking finance companies (NBFCs) in India, with market shares of 26.54%, 23.04%, and 22.88%, respectively.

Maruti Suzuki Smart Finance is a relatively new player in the auto finance market, but it has experienced rapid growth in recent years.

Search Volume by Vehicle Type

Four-wheelers are the most popular type of vehicle for auto finance in India, with a market share of 77.78% in FY’23.

Two-wheelers are the second most popular type of vehicle for auto finance, with a market share of 17.18%.

Search Volume by Vehicle Category

New vehicles are the most popular type of vehicle for auto finance in India, with a market share of 94.16% in FY’23.

Used vehicles are the second most popular type of vehicle for auto finance, with a market share of 5.84%.

“Auto finance companies need to be aware of these search trends and adapt their strategies to meet the needs of Indian consumers. This includes offering competitive interest rates, flexible repayment options, and transparent fee structures. By investing in the right digital marketing strategies and utilizing the auto finance industry trends companies can reach a wider audience and provide a seamless online experience,” says Sarvesh Bagla, CEO and Founder of Techmagnate.

City-wise Search Trends

Bengaluru (4.55 L) is the city with the highest search volume for auto finance in India, followed by Delhi (4.36 L) and Hyderabad (3.17 L).

All of the cities listed in the report experienced positive growth in search volume for auto finance in FY’23.

This suggests that there is a growing demand for auto finance in India and that this demand is not limited to any one city.

Keyword Searches with High Search Volumes

Top 10 Non-Brand Keywords

The search volume for “bike loan interest rate” has increased significantly in FY’23, suggesting that there is a growing demand for motorcycles in India.

Whereas, the search volume for “2nd hand car loan” has remained stable, indicating that consumers are still interested in purchasing used cars.

Top 5 Query Types

Interest rate is the most popular query type for auto finance in India, followed by EMI.

This suggests that consumers are primarily concerned with the affordability of auto or car loans. The search volume for “online” has increased slightly, indicating that consumers are becoming more comfortable applying for auto loans online.

How to Leverage Auto Finance Search Trends in Digital Marketing?

1. Focus on SEO and content marketing

With non-brand searches now accounting for over half of all auto finance search volumes, it is more important than ever for auto finance companies to rank high for relevant keywords. This can be achieved by investing in SEO and content marketing strategies that target the keywords consumers are using to search for auto finance information.

For example, if the top non-brand keyword is “car loan EMI calculator,” auto finance companies can create a how-to guide or blog post to address the query that directs consumers to their website where they can use a car loan EMI calculator.

Or since the top query type is “interest rate,”auto finance companies can create a blog post that compares the interest rates of different auto loans.

2. Develop personalized and transparent auto finance solutions

Consumers are increasingly seeking tailored and transparent auto finance solutions that meet their specific needs. This means auto finance companies need to develop a variety of products and services that cater to different customer segments. They also need to be transparent about their fees and interest rates so that consumers can make informed decisions.

3. Reach a wider audience with digital marketing

Auto finance companies should use a variety of digital marketing channels to reach a wider audience, including social media, search engine marketing, and display advertising. They should also experiment with new and innovative marketing channels, such as influencer marketing and native advertising.

4. Invest in a strong online presence

Auto finance companies need to ensure that they have a strong online presence that is easy to navigate and provides valuable information to consumers. This includes having a user-friendly website, an active social media presence, and a blog that provides informative content about auto finance.

5. Use data and analytics to improve marketing campaigns

Auto finance companies should use data and analytics to track the performance of their marketing campaigns and make adjustments as needed. These companies also need to target digital marketing campaigns to specific customer segments.

For example, if they are targeting young adults who are looking for their first car loan, they can run ads on social media platforms that are popular with this demographic. This is a key strategy used in digital marketing for banks as well.

Unlock The Secrets to Customer Acquisition And Business Growth

In today’s competitive auto finance market, simply offering competitive rates and attractive terms is not enough. You need to forge a substantial and trust-based connection with your potential customers, understanding their needs and aspirations.

Techmagnate’s Search Trend Reports equips you with the knowledge to:

Identify the most effective search engine optimization (SEO) keywords to drive relevant traffic to your website

Craft compelling content that resonates with your target audience’s search intent

Develop targeted marketing campaigns that reach the right consumers at the right time

Establish your brand as a trusted advisor and guide in the auto finance journey

If you’re ready to efficiently build your brand’s digital presence, get in touch with Techmagnate to use auto finance trends effectively.

Disclaimer: Disclaimer:This article is sponsored content curated by HT Syndication. The inputs and details accounted for in the article do not necessarily reflect those of HT, and HT does not endorse or assume any responsibility for the information provided.