Highly competitive sector in the modern automobile industry
Traditionally done by DSAs of finance companies
Auto Dealers became active through Dealer DSA channel from 2002 onwards
Finance commission is a major source of revenue for the dealers
In house promoted by dealers help customers to choose finance partners based on their profile
Public Sector Banks also got active after 2005
DSAs became weak due to the tough competition from dealers and banks
Couple of private sector banks like HDFC Bank started promoting auto finance through their branches
Around 10 players are very active now in the private sector
Major players are HDFC Bank, ICICI Bank, Sundaram Finance, Kotak Mahindra, IndusInd Bank, Axis Bank, Mahindra Finance, Magma Finance & Cholamandalam Finance
Major players in the public sector are SBI, SBT, Punjab National Bank & few Gramin Banks
Select finance companies became active in used car business from 2010 onwards.
Valuation of used car by approved agency is very important in this
Valuation report of Approved dealers are accepted by finance companies for funding to customers
Interest rates are coming down in the last one year due to the RBI policy – Major boost to auto finance sector and benefit to customers
Consistency in business during tough market condition by finance company is a major determining factor for building confidence among the channel partners and customers
