NBFC Vehicle Finance AUM to Hit Rs 11 Lakh Crore by FY27

Non-Banking Financial Companies (NBFCs) in India are expected to see their vehicle finance portfolios grow to ₹11 lakh crore by March 2027.

This growth is mainly due to an increase in used vehicle loans, which are growing faster than new vehicle loans.

Used vehicle loans offer better risk-adjusted returns and are more affordable.

The growth is also supported by good economic conditions, lower taxes, and lower interest rates.

Different types of vehicles like cars, utility vehicles, commercial vehicles, two-wheelers, and tractors are all contributing to this growth.

Commercial vehicles currently make up the largest part of this market, but cars and utility vehicles are expected to grow faster and take up a bigger share by FY27.