The Indian auto finance industry is undergoing a major transformation due to a confluence of various factors: changing consumer preferences, growing popularity of electric vehicles, entry of new FinTech players, and auto manufacturers seeking new revenue streams. This disruption is also changing consumers' search behavior, leading to a shift in the type of information they seek online.
An analysis of consumer search trends by Techmagnate, a leading Indian digital marketing company, has noted a significant shift in search queries related to auto finance. For example,
Get cash in minutes!
Best personal loans with lowest interest rates
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Increased focus on affordability and transparency
Demand for alternative financing solutions
Interest in financing electric vehicles
A personalized and streamlined experience
These insights support new research recently released by the Reserve Bank of India (RBI), which shows that more people are taking out loans to buy cars instead of homes, as cars become more popular and people want to have their own personal means of transportation.
According to RBI data, auto loans have grown by 137% in the last three years, making auto loans the second-largest loan segment after home loans.
This dynamic transformation in the auto loan industry is happening due to a confluence of various factors including growing demand for electric vehicles, growing accessibility in tier 2 and tier 3 cities, and rapid adoption of digital technologies. To effectively navigate this evolving environment, it is important to stay on top of the key trends shaping the industry.
Trends in Auto Finance in India
Increasing demand for electric vehicles: The Indian government is promoting the spread of electric vehicles (EVs) through various measures such as subsidies and tax exemptions, and demand for car loans for EVs is expected to increase.
Expansion of auto loans to tier 2 and 3 cities: Demand for car loans is on the rise in tier 2 and 3 cities as disposable incomes rise and car ownership becomes more affordable.
digitalization: The auto finance industry is becoming increasingly digital, with more lenders offering online applications and approvals.
Understanding search trends for auto finance in India
To further analyze and understand these trends, we need a deeper understanding of consumer behavior. According to the 2023 Auto Finance Search Trends Report by Techmagnate, Indian consumers will be “car Loan interest rate“or “Auto loan eligibility“Instead of relying solely on brand-specific queries.”
This change reflects an increased awareness of available options and a willingness to compare and contrast the services of different providers.
The growing popularity of electric vehicles is also influencing search behavior, with consumers seeking comprehensive information on financing solutions tailored to eco-friendly vehicles. They are proactively asking for more details. Interest rate, loan termand Qualifications standard Enabling people to make informed decisions about financing the purchase of an electric vehicle.
Affordability and transparency are paramount in consumer auto loan search patterns. Consumers are keen to look for options with low interest rates, flexible repayment plans, and transparent fee structures to minimize their financial burden.
Additionally, consumers are increasingly looking for personalized auto financing solutions that fit their unique needs and preferences. Consumers are looking for lenders that can provide customized recommendations and streamline the application process for a better overall experience.
India's Auto Finance Market Size
The used car financing market in India is expected to grow at a CAGR of around 11% during the forecast period (2022-2027). This growth is driven by various factors including rising disposable income, an expanding middle class, and growing popularity of personal vehicles.
As a result of these factors, consumers are becoming more informed about their auto finance options and are comparing services from different providers. This shift is reflected in the increasing share of non-branded searches in the auto finance industry.
For example, in fiscal 2022, brand search 46.54% of total search volumeOn the other hand, non-branded searches 53.46 percent. However, non-branded searches grew faster than branded searches in FY23 and now account for more than half of auto finance search volume, a trend that is set to continue as consumers become increasingly savvy about their auto finance options.
Key Players and Market Share Insights: Search Trends Report
A detailed study of the automobile finance industry 12,000 Keywords Conducted to uncover branded and non-branded trends, query patterns, and growth opportunities, this in-depth study of auto finance search trends provides valuable insights to help industry leaders better understand the market and make informed decisions.
Top 10 Auto Finance Brands in India
HDFC Bank is the leading auto finance brand in India with a market share of 44.84% in FY23.
SBI and ICICI Bank are the other two largest auto finance brands in India with market shares of 20.68% and 11.20% respectively.
Shriram Finance, Mahindra Finance and Bajaj Finserv are the leading non-banking financial companies (NBFCs) in India with market shares of 26.54%, 23.04% and 22.88% respectively.
Maruti Suzuki Smart Finance is a relatively new player in the auto finance market but has experienced rapid growth in recent years.
Search volume by car model
Four-wheelers are the most popular vehicle type for auto financing in India, with a market share of 77.78% in FY23.
Two-wheelers are the second most popular vehicle type eligible for car loans with a market share of 17.18%.
Search volume by vehicle type
New cars are the most popular vehicle type for auto financing in India, with a market share of 94.16% in FY23.
Used cars are the second most popular vehicle type for auto financing, with a market share of 5.84%.
“Auto finance companies need to be aware of these search trends and adapt their strategies to meet the needs of the Indian consumer. This includes offering competitive interest rates, flexible repayment options and transparent fee structures. Investing in the right digital marketing strategy and leveraging the trends in the auto finance industry will help companies reach a wider audience and provide a seamless online experience,” said Sarvesh Bagla, CEO and Founder, Techmagnate.
Search trends by city
The city with the highest search volume for car finance in India is Bangalore (4.55M), followed by Delhi (4.36M) and Hyderabad (3.17M).
All the cities mentioned in the report recorded positive growth in search volume for auto finance in FY23.
This suggests that the demand for auto finance is growing in India, and that this demand is not limited to any particular city.
High search volume keyword search
Top 10 Non-Branded Keywords
The search volume for “motorcycle loan interest rates” has increased significantly in FY23, indicating the growing demand for motorcycles in India.
Meanwhile, search volume for “used car loans” has remained steady, indicating that consumers remain interested in purchasing used cars.
Top 5 Query Types
In India, interest rates are the most common type of enquiry regarding car finance, followed by EMIs.
This indicates that consumers are primarily concerned with car loans and their ability to repay car loans. Search volume for “online” has increased slightly, indicating that consumers are becoming more comfortable applying for car loans online.
How can you leverage auto finance search trends in your digital marketing?
1. Focus on SEO and content marketing
With non-branded searches now accounting for more than half of auto finance search volume, it’s more important than ever for auto finance companies to rank highly for relevant keywords. This can be achieved by investing in SEO and content marketing strategies that target the keywords consumers are using to search for auto finance information.
For example, if the top non-branded keyword is “car loan EMI calculator”, then an auto finance company can create a how-to guide or blog post that addresses the query that will direct consumers to their website where they can use the car loan EMI calculator.
Or, an auto finance company could create a blog post comparing different car loan interest rates because the most popular type of searched query is “interest rates.”
2. Develop personalized and transparent auto financing solutions
Consumers are increasingly demanding customizable and transparent auto finance solutions that meet their specific needs. This means auto finance companies need to develop different products and services to cater to different customer segments. They also need to be transparent about fees and interest rates so consumers can make informed decisions.
3. Reach a wider audience with digital marketing
Auto finance companies need to leverage various digital marketing channels to reach a wide customer base. Social media, search Engine Marketingand Display AdvertisingYou should also try new and innovative marketing channels like influencer marketing and native advertising.
4. Invest in a strong online presence
Auto finance companies need to ensure they have a strong online presence that is easy to navigate and provides valuable information to consumers. This includes having a user-friendly website, an active social media presence, and a blog that provides useful content about auto finance.
5. Use data and analytics to improve your marketing campaigns
Auto finance companies need to use data and analytics to track the performance of their marketing campaigns and adjust them if necessary. These companies also need to target their digital marketing campaigns to specific customer segments.
For example, if you are targeting young people looking for their first car loan, you can advertise on social media platforms that are popular with this age group, a key strategy also used in banks’ digital marketing.
Unlock the secrets of customer acquisition and business growth
In today's competitive auto finance market, it's not enough to simply offer competitive rates and attractive terms. You also need to understand the needs and aspirations of your potential customers and build real, trust-based relationships with them.
Techmagnate's search trends report helps you learn:
Identify the most effective search engine optimization (SEO) keywords to drive relevant traffic to your website
Create compelling content that speaks to your target users' search intent
Develop targeted marketing campaigns that reach the right consumers at the right time
Establish your brand as a trusted advisor and guide on your auto finance journey.
If you’re ready to efficiently build your brand’s digital presence, contact Techmagnate to effectively capitalize on auto finance trends.
Disclaimer: Disclaimer: This article is sponsored content curated by HT Syndication. The information and details provided in the article do not necessarily reflect those of HT and HT is not responsible for the information provided.
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