New Delhi, Oct. 20 -- Rising car prices and aspirational consumer choices are driving higher auto loan sizes, according to TransUnion CIBIL's 'Shifting Gears 2026 - Credit Drives Today's Mobility' report.

Among the demographics, Gen Z and younger Millennials are more visible among first-time car buyers widening the mobility credit market and increasing the role of formal credit in enabling mobility across India, it said.

It noted that between H1FY19 and H1FY26, the average passenger vehicle loan amount grew by 49% to Rs.8.2 lakh, average loan tenure increased by five months to 62 months, and 51% of higher-value car loan borrowers were from semi-urban and rural India.

In the same period, two-wheeler loans became a mainstream credit prod...