New Delhi, June 4 -- Automakers are pushing deeper into vehicle financing as a growing reliance on loans turns customer credit into a lucrative business opportunity. From Honda Motor Co. and Eicher Motors Ltd to established players such as Mahindra & Mahindra Ltd and TVS Motor Co., manufacturers are expanding captive finance operations in a bid to boost sales, strengthen customer loyalty and capture a larger share of profits from the country's rapidly growing auto market.

While Honda Motor and Eicher Motors have recently decided to enter retail financing, Escorts Kubota, TVS Motor and Mahindra and Mahindra are all doubling down in the space. The twin aims: open up a fresh revenue stream, and ensure a seamless sales process.

"The basic p...