73% of 1st time car buyers in India financed their car

first-time Indian car buyers financed their carThe study takes in into consideration reasons new-vehicle shoppers give importance to but ultimately reject certain cars in favour of another. Through 2014, 27% of first-time new-vehicle buyers in India seriously considered a model other than the one they did buy, up from 20%in 2012. Keeping in mind that nearly three-fourths (73%) of first-time buyers financed their car in 2014, up from 64% in 2012.

It comes as no surprise that prospective buyers are cross shopping to get the best value of their car loan as compared to those who do not opt for financing. 30% of buyers who finance their vehicle also consider other vehicles when compared to 25% of those who pay cash for their car. 35% first-time vehicle buyers have a monthly household income of Rs 50,000 or more in 2014, in increase from 18% in 2012.

Despite inflation, rise in income levels teamed with greater availability of credit gives first-time car buyers in India an opportunity to evaluate choices across segments and price bands says Mohit Arora, executive director at J.D. Power Asia Pacific, Singapore. This is key data for automakers to evaluate in their quest to increase market share.