Car loans rise 49% as premiumisation spreads beyond metros

Average passenger vehicle loan amounts increased by 49% to ₹8.2 lakh between H1 2019 and H1 2026.

Premiumisation is extending beyond metros, with 51% of higher-value car loans in H1 2026 coming from semi-urban and rural areas.

Non-banking financial companies (NBFCs) dominate passenger vehicle financing, accounting for 37% of loans.