Car Loan Repo Rate Impact: Maharashtra Leads the Nation in Car Purchases, Setting a New Record
The phrase “Maharashtracha Naad Khula” (Maharashtra’s thunderous roar) is no longer just a lyrical expression — it now echoes in the corridors of the Indian auto industry. Maharashtra has topped the list of Indian states in passenger car purchases for the financial year 2024–25, marking a remarkable achievement in the country’s automobile sector.
According to official vehicle registration data, 4,68,975 cars were sold in Maharashtra during the fiscal year, making it the state with the highest number of car sales in India. This landmark figure reflects more than just a surge in consumer demand — it symbolizes economic growth, rapid urbanization, and an improving standard of living across the state.
Nationwide Competition, but Maharashtra Pulls Ahead
While southern states like Karnataka, Tamil Nadu, and Kerala have also witnessed strong car sales, and northern states such as Uttar Pradesh and Haryana are quickly catching up, Maharashtra has outpaced them all.
Here are the Top 5 states with the highest car sales in FY 2024–25:
Maharashtra – 4,68,975
Uttar Pradesh – 4,43,862
Gujarat – 3,47,670
Haryana – 2,75,358
Karnataka – 2,74,322
This performance further strengthens Maharashtra’s reputation as a major economic engine for the country.
Repo Rate Cut May Further Boost Auto Loans
Coinciding with this boom in car sales, the Reserve Bank of India (RBI) has introduced its first monetary policy of the new financial year, announcing a 25 basis point reduction in the repo rate, bringing it down to 6.50%. This move is expected to make car loans and home loans more affordable for the average consumer.
For instance, a five-year loan on a car worth ₹8 lakh could result in an EMI of approximately ₹15,600, though actual interest rates may vary by bank. At present, various banks are offering car loans at interest rates ranging between 8.50% and 11%.
As the repo rate influences lending costs, this cut is likely to encourage more consumers to opt for vehicle loans, potentially further boosting car sales in the months ahead.