The market for new passenger cars (sedans/hatchbacks/SUVs/MPVs/small vans for both passenger and cargo) in India expanded rapidly by over 1 million units in two years, from 3.08 million units in 2021 to 4.1 million units in 2023.
The market size, which exceeded 4 million units, is expanding while maintaining more than 4 million units in 2024, and is expected to grow further in 2025.

There are multiple factors behind the expansion of over 1 million units in the past two years, including the success of the Indian government’s measures to promote manufacturing to foster the middle-income class and a rebound increase from the limited supply of new cars due to the global shortage of semiconductors after the Corona disaster.
An even more significant factor is likely to be improved access to financial services, particularly auto loans.

The contribution of the transformation brought about by Suzuki is considered to be particularly significant.
In December 2020, Suzuki launched Maruti Suzuki Smart Finance (MSSF), a platform for online car loans in India.
This is an application that allows users to select a car, complete the loan application process, and get approval online, and enables them to compare loans that meet their needs by simulating interest rates, loan amounts, repayment periods, and other factors from a list of car loans from multiple financial institutions affiliated with Maruti Suzuki. The application allows users to compare and contrast loans that meet their needs.

Suzuki is actively increasing the number of financial institutions with which it has tie-ups, and as of September 2025, users will be able to compare loans from more than 30 financial institutions on the MSSF.
This allows prospective users to easily compare loan terms offered by financial operators, and each financial operator competes on interest rates, repayment terms, and loan limits, resulting in a convergence to a level favorable to the user.

In particular, the expansion of loan limits is believed to have contributed to the bottoming out of demand for new cars by pushing “those with income but little savings” (young people in their 20s, etc.) into the group that can afford to purchase new passenger cars.
In addition, policy interest rates have been gradually reduced since the beginning of 2025, and the combination of income tax cuts and GST (Goods and Services Tax) reductions is expected to re-accelerate the pace of automobile demand growth.

This report describes Suzuki’s auto loan initiatives in India and the ripple effects on competing manufacturers.
We look forward to hearing from you.