India’s third-largest private lender Axis Bank has reduced its car loan rates by 0.5-0.75 per cent. The rates will be 10-10.5 per cent for new loans with a term of 3-5 years. This move did not come as a surprise considering ICICI Bank cut its car loan rates by 0.25-0.5 per cent the previous day. “The cut is not in response to any player’s move. Based on customer research and interactions as well as the market feedback, we feel this is the appropriate time to offer lower rates for our customers,” said Manju Srivatsa, president – Retail Banking at Axis Bank. Auto loans market is getting exciting, thanks to the country’s small car segment which is seeing some activity lately because of various new car launches. All banks are now trying to cash in on this opportunity, including ICICI Bank which remained dormant in case of auto loans for quite some time. Axis Bank stands a good chance; it has registered a 35 per cent growth in auto loans on a year-on-year basis. It targets to disburse Rs. 1,000 cr auto loans in the coming quarter. Axis Bank has also launched Axis Advantage – an exclusive forum for select dealers. Under this facility, the dealers will be awarded exclusive schemes and attractive incentives.