new delhi indias new passenger vehicle finance market is expected to double to over rs 160000 crore from 201415 levels by the turn of the decade according to a report by ernst young ey the auto finance market in india is a growing market with 74 finance penetration and sub 1 nonperforming asset npa levels says the ey report the indian automotive market is expected to grow at a cagr of 13 by value during fy16fy26 to reach 300 billion by 2020 indias vehicle penetration is expected to increase by 50 albeit against a low base with a population size expected to hit 14 billion in 2020 and large majority of the population belonging to the driving age it provides for one of the worlds most attractive auto markets read the full report here the growth in the automotive market is expected to be driven by indias strong demographic socioeconomic fundamentals as well as welldeveloped industry fundamentals such as credit infrastructure captives have therefore emerged as key contenders in the indian automotive finance landscape finance penetration of original equipment manufacturersoems with captives has been higher than that of the overall market primarily driven by innovative products and campaigns captives have been successful as they add value to the entire ecosystem oems dealers and customers particularly by their potential to offer differentiated financing schemes with relatively high levels of customization rakesh batra partner and india automotive sector leader ey said the indian auto finance market is a key enabler of growth for the automotive market both private and captive auto financiers are focusing on building a more holistic relationship with both car buyers and dealers there is a significant scope of innovation in improving customer experience customer lifecycle management and digital operations et bureau published on feb 21 2017 at 0550 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etauto app get realtime updates save your favourite articles scan to download app indian auto finance market ernst young rakesh batra vehicle penetration homenewsauto financeindias new pv financing market to double to rs 1600 billion by 2020