Automotive Finance Market Size, Share, Opportunities, And Trends By Provider Type (Bank, OEMs, Others), By Purpose Type (Loan, Lease), By Vehicle Type (Passenger Cars, Commercial Vehicles), And By Geography - Forecasts From 2024 To 2029

  • Published : Jun 2024
  • Report Code : KSI061616933
  • Pages : 140

Automotive Finance Market is projected to grow at a CAGR of 5.41% from estimated value of US$297.009 billion in 2024 to US$386.442 billion in 2029.

Automotive finance provides the general public and different businesses or enterprises with financial help in purchasing an automobile or leasing it by using various financial products and services like auto loans and charging some percentage of interest in return. Therefore, automotive finance plays an important role in providing customers and businesses to purchase or lease vehicles without having to pay the full purchase amount. They can also easily apply online now with the technological advancements in the automotive finance industry that make it convenient for customers to get a loan or lease.

Automotive finance has several types, including auto loans, which are loans provided by banks or any finance companies to customers, including businesses, to purchase vehicles, and over a fixed amount of time, they have to return the total loan amount plus the interest on that loan. Some of the money lenders in the market determine the loan terms and interest rates by considering factors such as credit score or annual income and, based on that, decide whether they are eligible or not.

INTRODUCTION:

The automotive finance market is driven by the improving economic conditions and increasing sales and demand for vehicles across the globe. The growth in disposable income among the general public and the GDP of several growing economies are contributing to consumers being confident in taking loans or leases for vehicles when they can pay it off with a stable and good income. The affordable interest rates set by central banks influence borrowing costs for consumers and businesses as they get interested in buying vehicles when they get good interest rates on automotive loans and leases.

The government regulations for consumer protection laws and financial regulations build trust among customers for taking auto loans and innovations such as online loan applications, digital payment platforms, and automated underwriting processes. This makes auto finance processes easier for the consumer, all contributing to automotive finance market growth over the forecast period.

Moreover, the increase in vehicle affordability and pricing makes it easy for consumers to purchase automobiles using automotive finance and the credit availability and risk assessment that helps assess borrower creditworthiness are crucial factors in the auto finance market and are driving the market growth. The shifts in consumer preferences that include preferences for vehicle types and ownership models, competition among auto finance providers, global economic trends, trade policies, and market integration efforts are all anticipated to boost the automotive finance market over the forecast period.

MARKET DRIVERS:

  • Growth in economies and vehicle sales across the globe is predicted to propel the market:

The growth in economies with rapid industrialization and urbanization in several countries across the globe drives the automotive finance market. This is further leading to GDP growth, rising employment rates which are giving job security to people that grow consumer confidence to spend money on vehicles, and affordable interest rates that positively impact the automotive finance market. The stronger economic conditions of a region lead to customers spending high amounts on vehicles and getting easier access to credit from banks or auto loan service providers, which helps in the automotive finance market growth.

The demand for automobiles directly affects the automotive finance market because the growth in vehicle sales is directly proportional to the growing need for auto loans or leases for purchasing vehicles. The global rise in the popularity of EVs is also a contributing factor in the rising sales of vehicles as several governments are promoting and providing subsidies on EVs, which is making it easy for consumers to take auto loans, which in turn is predicted to propel the automotive finance market growth over the forecast period. For instance, the Japanese government provided a maximum of 800,000 Japanese Yen or 7,200 US Dollars for CEV or clean energy vehicles subsidies given per vehicle in 2021.

  • The growing credit availability, vehicle affordability, and competitive landscape in the automotive finance industry are projected to drive the market.

The growing consumer demand for affordable vehicles and auto loans among the general public is driving several key automobile manufacturers to work together with auto finance companies to deliver a product range that is affordable with suitable interest rates according to the consumer's need. Therefore, changes in vehicle prices, including incentives, discounts, and leasing terms, influence consumers' purchasing decisions and financing preferences. Affordable pricing and attractive financing offers can stimulate demand for vehicles, which positively affects the automotive finance market.

Additionally, the availability of credit, the criteria used for assessing borrower creditworthiness, and advancements in technology have transformed the automotive finance industry, leading to innovations such as online loan applications, digital payment platforms, and automated underwriting processes. These are critical factors that drive the automotive finance market's growth over the forecast period.

MARKET RESTRAINT:

Automotive finance, despite having an important role in making it easy for consumers to purchase or lease vehicles and convenient to apply for automotive loans with technological advancements, can face various constraints that can impact the automotive finance market negatively in the forecast period. For instance, the uncertainties in the global economy leading to varying incomes of people across the globe, coupled with constantly changing interest rates for loans, are hindering the automotive finance market.

Furthermore, the changing government regulations and compliances for loans or leases may differ with the policies in the market and several automotive finance service providers can find it difficult to comply with these changing regulations. Thus, anticipated to hinder the automotive finance market growth over the forecast period.

The growth is projected to be prominent in the North American region.

The North American region is expected to show major growth in the automotive finance market. A growing number of automotive finance service providers in several countries, such as the USA, Canada, and Mexico, are making it easy for consumers to purchase vehicles with suitable interest rates.

Additionally, the growth in automobile sales across the region is contributing to the rise in the need for auto loans among the general public and, therefore, is positively impacting the automotive finance market in the North American region over the forecast period. The Asia-Pacific region, with rapid growth in the automotive industry region, is expected to show significant growth in the automotive finance market.

Products Offered by Key Companies:

  • HDB Financial Services: Auto loan is provided for new car purchases, used car purchases, and used car re-finance coupled with the advantages of low car loan interest rates.
  • Muthoot Fincorp: Auto loan has flexible repayment options, attractive interest rates with schemes, and quick and easy documentation.

Key Developments:

  • In November 2023, Bank of America Corporation announced the launch of new and innovative digital tools so that clients can get pre-qualified for auto financing, learn how much they may be able to borrow, and estimate their terms without any impact on credit scores.

Automotive Finance Market Scope:

 

Report Metric Details
Market Size Value in 2024 US$297.009 billion
Market Size Value in 2029 US$386.442 billion
Growth Rate CAGR of 5.41% billion from 2024 to 2029
Study Period 2019 to 2029
Historical Data 2019 to 2022
Base Year 2024
Forecast Period 2024 – 2029
Forecast Unit (Value) USD Billion
Segments Covered
  • Provider Type
  • Purpose Type
  • Vehicle Type
  • Geography
Companies Covered
  • Tata Motors Finance
  • Genpact
  • Solifi
  • Bajaj Auto Finance
  • Muthoot FinCorp
Regions Covered North America, South America, Europe, Middle East and Africa, Asia Pacific
Customization Scope Free report customization with purchase

 

Segmentation:

  • By Provider Type
    • Bank
    • OEMs
    • Others
  • By Purpose Type
    • Loan
    • Lease
  • By Vehicle Type
    • Passenger Cars
    • Commercial Vehicles
  • By Geography
    • North America
      • United States
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others 
    • Europe
      • United Kingdom
      • Germany
      • France
      • Italy
      • Spain
      • Others 
    • Middle East and Africa
      • Saudi Arabia
      • UAE
      • Others 
    • Asia Pacific
      • Japan
      • China
      • India
      • South Korea
      • Taiwan
      • Thailand
      • Indonesia
      • Others

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. AUTOMOTIVE FINANCE MARKET BY PROVIDER TYPE

5.1. Introduction

5.2. Bank

5.2.1. Market Trends and Opportunities

5.2.2. Growth Prospects

5.2.3. Geographic Lucrativeness

5.3. OEMs

5.3.1. Market Trends and Opportunities

5.3.2. Growth Prospects

5.3.3. Geographic Lucrativeness

5.4. Others

5.4.1. Market Trends and Opportunities

5.4.2. Growth Prospects

5.4.3. Geographic Lucrativeness

6. AUTOMOTIVE FINANCE MARKET BY PURPOSE TYPE

6.1. Introduction

6.2. Loan

6.2.1. Market Trends and Opportunities

6.2.2. Growth Prospects

6.2.3. Geographic Lucrativeness

6.3. Lease

6.3.1. Market Trends and Opportunities

6.3.2. Growth Prospects

6.3.3. Geographic Lucrativeness

7. AUTOMOTIVE FINANCE MARKET BY VEHICLE TYPE

7.1. Introduction

7.2. Passenger Cars

7.2.1. Market Trends and Opportunities

7.2.2. Growth Prospects

7.2.3. Geographic Lucrativeness

7.3. Commercial Vehicles

7.3.1. Market Trends and Opportunities

7.3.2. Growth Prospects

7.3.3. Geographic Lucrativeness

8. AUTOMOTIVE FINANCE MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Provider Type

8.2.2. By Purpose Type

8.2.3. By Vehicle Type

8.2.4. By Country

8.2.4.1. United States

8.2.4.1.1. Market Trends and Opportunities

8.2.4.1.2. Growth Prospects

8.2.4.2. Canada

8.2.4.2.1. Market Trends and Opportunities

8.2.4.2.2. Growth Prospects

8.2.4.3. Mexico

8.2.4.3.1. Market Trends and Opportunities

8.2.4.3.2. Growth Prospects

8.3. South America

8.3.1. By Provider Type

8.3.2. By Purpose Type

8.3.3. By Vehicle Type

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.1.1. Market Trends and Opportunities

8.3.4.1.2. Growth Prospects

8.3.4.2. Argentina

8.3.4.2.1. Market Trends and Opportunities

8.3.4.2.2. Growth Prospects

8.3.4.3. Others

8.3.4.3.1. Market Trends and Opportunities

8.3.4.3.2. Growth Prospects

8.4. Europe

8.4.1. By Provider Type

8.4.2. By Purpose Type

8.4.3. By Vehicle Type

8.4.4. By Country

8.4.4.1. United Kingdom

8.4.4.1.1. Market Trends and Opportunities

8.4.4.1.2. Growth Prospects

8.4.4.2. Germany

8.4.4.2.1. Market Trends and Opportunities

8.4.4.2.2. Growth Prospects

8.4.4.3. France

8.4.4.3.1. Market Trends and Opportunities

8.4.4.3.2. Growth Prospects

8.4.4.4. Italy

8.4.4.4.1. Market Trends and Opportunities

8.4.4.4.2. Growth Prospects

8.4.4.5. Spain

8.4.4.5.1. Market Trends and Opportunities

8.4.4.5.2. Growth Prospects

8.4.4.6. Others

8.4.4.6.1. Market Trends and Opportunities

8.4.4.6.2. Growth Prospects

8.5. Middle East and Africa

8.5.1. By Provider Type

8.5.2. By Purpose Type

8.5.3. By Vehicle Type

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.1.1. Market Trends and Opportunities

8.5.4.1.2. Growth Prospects

8.5.4.2. UAE

8.5.4.2.1. Market Trends and Opportunities

8.5.4.2.2. Growth Prospects

8.5.4.3. Others

8.5.4.3.1. Market Trends and Opportunities

8.5.4.3.2. Growth Prospects

8.6. Asia Pacific

8.6.1. By Provider Type

8.6.2. By Purpose Type

8.6.3. By Vehicle Type

8.6.4. By Country

8.6.4.1. Japan

8.6.4.1.1. Market Trends and Opportunities

8.6.4.1.2. Growth Prospects

8.6.4.2. China

8.6.4.2.1. Market Trends and Opportunities

8.6.4.2.2. Growth Prospects

8.6.4.3. India

8.6.4.3.1. Market Trends and Opportunities

8.6.4.3.2. Growth Prospects

8.6.4.4. South Korea

8.6.4.4.1. Market Trends and Opportunities

8.6.4.4.2. Growth Prospects

8.6.4.5. Taiwan

8.6.4.5.1. Market Trends and Opportunities

8.6.4.5.2. Growth Prospects

8.6.4.6. Thailand

8.6.4.6.1. Market Trends and Opportunities

8.6.4.6.2. Growth Prospects

8.6.4.7. Indonesia

8.6.4.7.1. Market Trends and Opportunities

8.6.4.7.2. Growth Prospects

8.6.4.8. Others

8.6.4.8.1. Market Trends and Opportunities

8.6.4.8.2. Growth Prospects

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Tata Motors Finance

10.2. Genpact

10.3. Solifi

10.4. Bajaj Auto Finance

10.5. Muthoot FinCorp

10.6. Accenture

10.7. Sopra Banking Software

10.8. SAIC Motor

10.9. Alfa Financial Software

10.10. Lincoln


Tata Motors Finance

Genpact

Solifi

Bajaj Auto Finance

Muthoot FinCorp

Accenture

Sopra Banking Software

SAIC Motor

Alfa Financial Software

Lincoln


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