Our read

Kotak Prime is likely to lean further into longer-tenure loans for young buyers of compact SUVs.

For operators

Car retailers should expect first-time buyers in their mid-20s and early 30s to spend up to ₹8 lakh, so stocking better-equipped trims and compact SUVs and offering longer-tenure finance should help conversion.

Watch

First-time buyer spend ceiling above ₹8 lakh in Kotak Prime's next report would mean compact-SUV demand is lifting budgets, pushing lenders to stretch tenures further.

The report: Young first-time car buyers in India spend up to ₹8 lakh as aspirations shift, Kotak Prime report says

Buyers in their mid-20s and early 30s are moving towards better-equipped cars, compact SUVs and longer loan tenures, vehicle financier Kotak Prime says.

Kotak Prime: top of first-time buyers' spend range, buyers in mid-20s to early 30s
First-time car buyer spend ceiling
₹8 lakh
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What to track next

  • Average auto-loan tenure for young borrowers in lenders' disclosures
  • Delinquency trends in Kotak Prime's auto-loan book at its next results
  • Compact SUV share in entry-level and mid-segment carmaker sales
  • Any RBI comment or rule on auto-loan tenures or underwriting

The source

Source Read the source at ET Auto Retail

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