About Automotive Financing
Automotive Financing is also known as auto finance which provides the various range of financial products that allow customer to buy or lease a vehicle with many arrangements other than outright payment. The provision of auto finance, usually by a bank or various kind of financial institution and it is widely used both by members of the public and businesses.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
CAGR | 3.0% |
Analyst at AMA Research estimates that United States Players will contribute the maximum growth to Global Automotive Financing 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), Daimler AG (Germany), Ford Motor Credit (United States), Toyota Financial Services (Japan), Volkswagen Financial Services (Germany), Bank of America (United States), Hitachi Capital Asia-Pacific (Singapore), HDFC (India), Nissan's automotive finance (United States), Honda Financial Services (Japan) and Banque PSA Finance (France) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are Wells Fargo (United States), JPMorgan Chase (United States), Allianz SE (Germany), BMW Financial (United States) and Maruti Finance (India).
Segmentation Overview
AMA Research has segmented the market of Global Automotive Financing market by Type (Two year, Three Year, Four year, Five year and Other), Application (Passenger Use, Commercial Use, Government Use and Others) and Region.
On the basis of application, Commercial Use Vehicle segment is dominating the market in the year 2023 where as Passenger Use vehicle segment stood as second largest market .On the basis of geography, the market of Automotive Financing 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). Asia Pacific region held largest market share in the year 2023. If we see Market by Service Providers, the sub-segment i.e. Banking Institutions will boost the Automotive Financing market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Vehicle Type, the sub-segment i.e. Used Vehicle will boost the Automotive Financing market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Rise in the demand for EVs, Increasing digital financial transactions across the globe and Top players are focusing on flexible and customized financing solutions
Market Growth Drivers:
Rise in Cab Service financing, Increasing numbers of passenger cars in emerging economies, Increased penetration in used cars and leasing and Huge Investment in Promotion of operational leasing
Challenges:
Increase in ride-sharing services and Credit underwriting standards are stringent
Restraints:
The base interest rate in Ghana is 26%, indicating that automobile loans are out of reach for most people. This is a major cause for concern in many emerging economies.
Opportunities:
Top players are focusing on flexible and customized financing solutions, Digitalization will have a significant impact on the automotive financing, business in emerging countries and Consumer inclination towards the surging investments in autonomous vehicles
Market Leaders and their expansionary development strategies
In February 2022, Daimler AG became Mercedes-Benz Group AG, following Daimler Truck's successful stock market debut, and the group's renewed focus on the automotive business was highlighted by a new name.
In January 2018, Nissan's automotive finance arm announced collaboration with AutoGravity, the automotive shopping and financing platform.
Under the final rule, the CFPB will directly regulate “larger participants” of the automobile financing market to ensure their compliance with federal consumer financial laws, including the Equal Credit Opportunity Act, the Truth in Lending Act, the Consumer Leasing Act, and the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) that include prohibition on unfair, deceptive, or abusive acts or practices.
Key Target Audience
Regulatory bodies, including government agencies and NGO, Trade associations and industry bodies and Other
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.