Automotive Finance Market Size, Share, Opportunities, And Trends By Type (Direct Financing, Indirect Financing) By Provider Type (Bank, OEMs, Others), By Purpose Type (Loan, Lease), By Vehicle Type (Passenger Cars, Commercial Vehicles), And By Geography - Forecasts From 2025 To 2030
- Published : Feb 2025
- Report Code : KSI061616933
- Pages : 140
Automotive Finance Market Size:
The Automotive Finance Market, valued at US$404.32 billion in 2030 from US$314.896 billion in 2025, is projected to grow at a CAGR of 5.13% through 2030.
Automotive finance, or auto finance, is a type of financial service that is offered by banks, OEMs, and other financial institutions to consumers for the purchase of automobiles.
The major factor propelling the growth of the global automotive finance market is the increasing global demand for automobiles. The growing digital transformation in the financial sector is also estimated to boost the market during the estimated timeline.
The innovation in the global financial solution landscape is estimated to boost the growth of the automotive finance market, as with the increasingly changing landscape of automotive ownership, like car-sharing and ride-sharing, these financial solutions are designed as per the needs of the consumers.
Similarly, the growing digital transformations in the financial sector are also estimated to propel the growth of the market. Various financial service providers around the world have introduced innovative platforms, such as online car buying and digital finance solutions, which enable consumers to access convenient and efficient leasing and loan services.
Furthermore, the adoption of electric vehicles is increasing, and government incentives and lower operating costs are driving demand for specialized EV financing options. Moreover, the affordability of used cars and the rise of certified pre-owned programs contribute to the growth of used car financing. These trends cater to diverse consumer preferences and contribute to the overall expansion of the automotive finance market.
Automotive Finance Market Overview & Scope
The Automotive Finance Market is segmented by:
- Type: Indirect financing type will have significant market growth by the third-party lender for expanding loan packages.
- Provider Type: Banks provide a range of loan products to cater to different needs, such as new and used car loans, various loan terms, and specialized financing for electric or commercial vehicles. Thus, having a prominent market share during the forecast period.
- Purpose Type: Attractive loan terms and competitive interest rates are the driving forces behind the market growth of this segment.
- Vehicle Type: Passenger cars are likely to have notable growth market by the expanding market of Asia Pacific and Africa.
- Region: By geography, the automotive finance market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific.
Top Trends Shaping the Automotive Finance Market
1. Availability of flexible financing
- The growing availability flexible financing options is among the key trend increasing the demand for the automotive financial services.
2. Technological advancement
- The increasing technological advancement in the financing sector increases the consumer convenience to access finance solutions from various providers.
Automotive Finance Market: Growth Drivers vs. Challenges
Drivers:
- Increasing global demand for automotives: The major factor propelling the growth of the market is the increasing global demand for automobiles. With the increasing global demand for automobiles, the demand for more affordable and convenient financial solutions in the sector is estimated to increase.
- Growing digital transformation: Amid the growing global demand for automobiles, numerous financial service providers and automobile manufacturers have unveiled a range of captive finance programs through digital platforms in social media, Apps, and Websites (search engines). These services are designed to meet consumer needs and provide financial solutions.
Challenges:
- Price volatility: The price volatility due to the supply-chain constraint is the serious challenge in the industry. The change of rate of interest by major central banks are major reason for the restraint in the growth of the market.
Automotive Finance Market Regional Analysis
- North America: In North America, US GDP is experiencing positive traction and with the improvement in living standards and disposable income the demand for major durable goods such as vehicles is growing in the economy which has positively impacted the sales volume. For instance, according to the International Organization of Motor Vehicles Manufacturers, in 2023, the automotive sales in the United States reached 16 million units which represented a 12.5% growth over the sales committed in 2022.
Likewise, a steep drop in domestic inventories elevated the price of new automobiles which further declined used car prices, thereby improving the affordability of used automobiles. For instance as per the auto loan origination data of the Bank of America, in 2023, loans for used vehicles witnessed a stronger growth.
Automotive Finance Market: Competitive Landscape
The market is fragmented, with many notable players including Tata Motors Finance, Genpact, Solifi, Bajaj Auto Finance, Muthoot FinCorp, Sopra Banking Software, SAIC Motor, Wells Fargo , Lincoln, Mahindra Finance, Ford Motor Company, Ally Financial Inc., Laxmi India Finance Limited, Toyota Financial Services, and Volkswagen Financial Services.among others:
Few strategic developments related to the market:
- Partnership: In January 2025, Kaltra announced t CA Auto Finance, with partnership with KGM UK, announced the launch of KGM Financial Services, which is aimed at offering seamless automotive financing solutions to the consumers.
- MOU: In September 2024, HDFC Bank, India's leading private sector bank, and JLR India have signed a Memorandum of Understanding (MoU) for auto financing. The Bank is therefore JLR's preferred vehicle financier.
- MOU: In December 2024, Maruti Suzuki India Limited (MSIL), announced signing of a MoU (Memorandum of Understanding) with Saraswat Co-operative Bank Ltd (Saraswat Bank). Under this collaboration, the Saraswat Bank would provide customised auto retail financing solutions for customers. With this tie-up, MSIL aims to help dealer partners offer comprehensive retail financing solutions to its customers.
Automotive Finance Market Scope:
| Report Metric | Details |
| Automotive Finance Market Size in 2025 | US$314.896 billion |
| Automotive Finance Market Size in 2030 | US$404.32 billion |
| Growth Rate | CAGR of 5.13% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
|
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Automotive Finance Market |
|
| Customization Scope | Free report customization with purchase |
Automotive Finance Market is analyzed into the following segments:
By Type
- Direct Financing
- Indirect Financing
By Provider Type
- Bank
- OEMs
- Others
By Purpose Type
- Loan
- Lease
By Vehicle Type
- Passenger Cars
- Commercial Vehicles
By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- UK
- France
- Spain
- Others
- Middle East and Africa
- UAE
- Israel
- Others
- Asia Pacific
- China
- Japan
- South Korea
- India
- Indonesia
- Taiwan
- Thailand
- Others
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Frequently Asked Questions (FAQs)
The automotive finance market is expected to reach a total market size of US$404.32 billion by 2030.
Automotive Finance Market is valued at US$314.896 billion in 2025.
The automotive finance market is expected to grow at a CAGR of 5.13% during the forecast period.
The North American region is expected to show major growth in the automotive finance market.
The automotive finance market is driven by the improving economic conditions and increasing sales and demand for vehicles across the globe.
1. EXECUTIVE SUMMARY
2. MARKET SNAPSHOT
2.1. Market Overview
2.2. Market Definition
2.3. Scope of the Study
2.4. Market Segmentation
3. BUSINESS LANDSCAPE
3.1. Market Drivers
3.2. Market Restraints
3.3. Market Opportunities
3.4. Porter’s Five Forces Analysis
3.5. Industry Value Chain Analysis
3.6. Policies and Regulations
3.7. Strategic Recommendations
4. TECHNOLOGICAL OUTLOOK
5. AUTOMOTIVE FINANCE MARKET BY TYPE
5.1. Introduction
5.2. Direct Financing
5.3. Indirect Financing
6. AUTOMOTIVE FINANCE MARKET BY PROVIDER TYPE
6.1. Introduction
6.2. Bank
6.3. OEMs
6.4. Others
7. AUTOMOTIVE FINANCE MARKET BY PURPOSE TYPE
7.1. Introduction
7.2. Loan
7.3. Lease
8. AUTOMOTIVE FINANCE MARKET BY VEHICLE TYPE
8.1. Introduction
8.2. Passenger Cars
8.3. Commercial Vehicles
9. AUTOMOTIVE FINANCE MARKET BY GEOGRAPHY
9.1. Introduction
9.2. North America
9.2.1. By Type
9.2.2. By Provider Type
9.2.3. By Purpose Type
9.2.4. By Vehicle Type
9.2.5. By Country
9.2.5.1. USA
9.2.5.2. Canada
9.2.5.3. Mexico
9.3. South America
9.3.1. By Type
9.3.2. By Provider Type
9.3.3. By Purpose Type
9.3.4. By Vehicle Type
9.3.5. By Country
9.3.5.1. Brazil
9.3.5.2. Argentina
9.3.5.3. Others
9.4. Europe
9.4.1. By Type
9.4.2. By Provider Type
9.4.3. By Purpose Type
9.4.4. By Vehicle Type
9.4.5. By Country
9.4.5.1. United Kingdom
9.4.5.2. Germany
9.4.5.3. France
9.4.5.4. Spain
9.4.5.5. Others
9.5. Middle East and Africa
9.5.1. By Type
9.5.2. By Provider Type
9.5.3. By Purpose Type
9.5.4. By Vehicle Type
9.5.5. By Country
9.5.5.1. Saudi Arabia
9.5.5.2. UAE
9.5.5.3. Others
9.6. Asia Pacific
9.6.1. By Type
9.6.2. By Provider Type
9.6.3. By Purpose Type
9.6.4. By Vehicle Type
9.6.5. By Country
9.6.5.1. China
9.6.5.2. Japan
9.6.5.3. India
9.6.5.4. South Korea
9.6.5.5. Taiwan
9.6.5.6. Others
10. COMPETITIVE ENVIRONMENT AND ANALYSIS
10.1. Major Players and Strategy Analysis
10.2. Market Share Analysis
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Competitive Dashboard
11. COMPANY PROFILES
11.1. Tata Motors Finance
11.2. Genpact
11.3. Solifi
11.4. Bajaj Auto Finance
11.5. Muthoot FinCorp
11.6. Sopra Banking Software
11.7. SAIC Motor
11.8. Wells Fargo
11.9. Lincoln
11.10. Mahindra Finance
11.11. Ford Motor Company
11.12. Ally Financial Inc.
11.13. Laxmi India Finance Limited
11.14. Toyota Financial Services
11.15. Volkswagen Financial Services
12. APPENDIX
12.1. Currency
12.2. Assumptions
12.3. Base and Forecast Years Timeline
12.4. Key benefits for the stakeholders
12.5. Research Methodology
12.6. Abbreviations
Tata Motors Finance
Genpact
Solifi
Bajaj Auto Finance
Muthoot FinCorp
Sopra Banking Software
SAIC Motor
Wells Fargo
Lincoln
Mahindra Finance
Ford Motor Company
Ally Financial Inc.
Laxmi India Finance Limited
Toyota Financial Services
Volkswagen Financial Services
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