MUMBAI: Kotak Mahindra Prime, a subsidiary of Kotak Mahindra Bank that provides auto loans, expects the upcoming festive season to boost its loan demand. In the car segment, the mid-size SUVs (sports utility vehicles), which are becoming increasingly popular, are expected to drive loan demand in the upcoming quarter.
“We expect good demand during the festive season in line with industry expectations of car sales. Most manufacturers have already launched or are ready to launch their new products in the mid-size SUV segment as well as on the luxury end ahead of the festive season,” Shahrukh Todiwala, Whole-time Director, Kotak Mahindra Prime told TNIE. “The new launches are going to add to the festive buzz and create huge footfall at the dealerships. This year, the festive season starts with a lag of a month and we expect good offtake during these months,” he added.
Total advances of Kotak Mahindra Prime stood at Rs 29,575 crore as of June 30, 2023. The preference of customers for SUVs has been growing consistently in the country. Passenger vehicle volumes rose 27% to 3.9 million units in the year ended March 31, as per Society of Indian Automobile Manufacturers (SIAM). Sales of utility vehicles stood at over 2 million. The growing popularity of SUVs means higher demand for loans for these vehicles.
“Loans for the mid-size SUV segment is growing the fastest, very much in line with manufacturer sale numbers. On a year-on-year basis, this segment has been growing since the last two years,” said Todiwala. “The mid-size SUV segment is growing faster than all the segment mainly due to the shift in the preference of the customers and most manufacturers in the last two years have launched models in this segment,” he added.