September 2009 saw the Car Loans market reaching a new high with Rs 3400 Cr worth of loan disbursals. This is almost 25% higher than the monthly average taken over last 4 months.

HDFC bank saw the highest percentage rise in their sales (40% year-on-year growth) while others like Kotak Mahindra Bank, SBI, Canara Bank, PNB & Bank Of Baroda saw growths in the range of 25-30%.

The growth has happened not only because of a strong demand for cars in this month, but also the expansion of car loan market into smaller towns. With PSU banks coming with lower interest rates, there was a lot of demand from the 2nd & 3rd tier towns and even rural areas.

The car demand on the other hand can be attributed to the slew of new models launched this season.