About Automotive Financing Services
The auto finance is the process where buyers can obtain financing or borrow money through a contractual agreement bank, credit union, or an automotive company or dealer where the purchase is being made. Auto financing, also known as car finance, car financing, or auto finance, refers to the range of financial products available that allow people to acquire a car with any arrangement other than a full-cash single lump payment. No additional collateral is required. Growth will be fuelled by micro markets and the new mobility advances driver of the market growth.
Attributes | Details |
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Study Period | 2018-2028 |
Base Year | 2022 |
Unit | Value (USD Million) |
Automotive Financing Services is a fragmented market due to the presence of many established competitors. The growing interest in advanced electronics in vehicles is an opportunity to automotive financial services. The market is highly competitive with a few players occupying the major share. The key players are highly focused on developing and innovating new strategies to maintain their market position and customer base. The companies are also planning strategic activities like partnerships, collaboration, mergers, and acquisitions which will help them to sustain in the market and maintain their competitive edge. Analyst at AMA Research estimates that Japanese Players will contribute the maximum growth to Global Automotive Financing Services market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Ally Financial (United States), Chase (United States), Capital One (United States), Toyota (Japan), Ford (United States), Nissan Infiniti (Japan), Santander (Spain), Honda (Japan), Bank Of America (United States) and Toyota (Japan) are some of the key players that are part of study coverage.
Segmentation Overview
AMA Research has segmented the market of Global Automotive Financing Services market by Type (Passenger Cars and Commercial Cars) and Region.
On the basis of geography, the market of Automotive Financing Services has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Loan Term , the sub-segment i.e. Short-term will boost the Automotive Financing Services market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Financing Type, the sub-segment i.e. Lease will boost the Automotive Financing Services market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Rising Autonomous driving technology
Market Growth Drivers:
Growth will be fueled by micro markets and the new mobility advances
Challenges:
Rising Competition among Existing Players and Car loan Fraud & Rising Interest rate
Restraints:
Manufacturing Defects and Ineffective Marketing
Opportunities:
The growing interest in advanced electronics in vehicles.
Market Leaders and their expansionary development strategies
In December 2021, A Kotak Mahindra Bank announced it has acquired the passenger vehicle finance portfolio of the existing Ford Motor Company’s captive lending platform for an undisclosed sum. Kotak Mahindra Prime acquired Ford Credit India’s loan portfolio of Rs425 Crore Spread across 16,000 customers.
In November 2021, Toyota Financial Services to launched a digital portal & mobile app. Toyota Financial Services (UK) is extending its partnership with Digital to launch a web portal and mobile app for customers. The project forms part of a digital-first approach as TFS anticipates growing demand for self-service features., and In December 2022, Honda Cars India has partnered with Indian Bank to offer car financing solutions. This tie-up has been announced to provide easy, affordable, and attractive financial schemes for Honda’s customers. The partnership will make purchasing of Honda products easier by offering easy loan disbursement, attractive interest rates, special offers, and more.
Key Target Audience
Customers, Financial Institutions, Research and Development (R&D) companies, Market research and consulting service providers, Government Agencies, End User Industry and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.