KSA Auto Finance Market Is Expected to Grow with Credit Disbursed Expected to Reach SAR 25,338.2 Mn by 2026F: Ken Research
Gurugram, India, Jan. 20, 2023 (GLOBE NEWSWIRE) —
- Entry of women drivers in the market is expected to lead to an increase in the total cars sold, thereby positively affecting the credit disbursed in KSA Auto Finance market.
- The Vision 2030 project in KSA has massive plans for the economy targeting to improve employment figures that might aid the auto finance market in the country.
- The major players in the auto loan market include Al Rajhi and SNB followed by Emirates NBD, Banque Saudi Fransi. New banks that have entered the market include Al Jazira, Arab National Bank and Alinma.
Automotive Financing Companies are increasingly moving towards higher technological advancements to improve operational profits as well as customer experience. For example- AI is increasingly making important decisions, from who gets approved for credit to how to answer customer questions about loan decisions in real time.
Entrance of New Players in the market and Increase in Private Entities:
New players entering the
KSA Auto finance market
are Fin-tech companies. Around 38 companies have received approval from the Central Bank and have started garnering database by entering into the market with digital wallets and offering products like BNPL. The number of private entities in the Saudi Arabia auto finance market is increasing, hence the percentage share of government to private might shift to private.
Preference towards 4W instead of 2W:
The car buying trend in KSA is driven by customers willing to buy new cars instead of used once. The population also prefers changing cars in every 5 years. Unlike South Asian countries where every household has a 2 wheeler, in KSA even the lowest income category commute using a car. Two wheelers in the kingdom of Saudi Arabia are perceived as an item of luxury rather than commute, and four wheelers have a higher preference rate.
Vision 2030 by the KSA government has massive plans for the economy targeting to improve employment figures that might be fruitful for the auto finance market as well. Under the Vision 2030, the KSA Government plans on reducing the oil dependency and looking forward towards the adoption of Electric Vehicles. The government is keen on creating a domestic automotive industry and has encouraged global vehicle manufacturers to establish local operations.
Analysts at Ken Research in their latest publication
KSA Auto Finance Market Outlook to 2026F-Driven by Women Entering the Market, Growing Private Entities and Initiatives by the Government
by Ken Research observed the potential of Auto Finance Market Outlook in KSA. The rising Auto Finance consciousness among the population, along with increasing loan facilities, customer taste and preference, implementation of favourable government rules & regulations is expected to contribute to the market growth over the forecast period. The KSA Auto Finance Market is expected to grow at 6.6% CAGR over the forecasted period 2021-2026F.
Key Segments Covered:-
KSA Auto Finance
By Type of Lenders
By Type of Motor Vehicle:
By Type of Commercial Motor Vehicle:
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By Type of Passenger Motor Vehicle:
By Type of Vehicle Financed:
By Tenure of Loan for New Vehicles:
- 1 Year
- 2 Year
- 3 Year and more
By Tenure of Loan for Old Vehicles:
- 1 Year
- 2 Year
- 3 Year and more
Key Target Audience
- KSA Auto Industries
- Government Bodies & Regulating Authorities
- Finance Industry
- Car company
- Automobile dealer and users
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Time Period Captured in the Report:
- Al Rajhi Bank
- Riyad Bank
- National Commercial Bank
- Abdul Latif Jameel
- Arab National Bank
- The Saudi Investment Bank
- Emirates NBD
- Saudi Finance Company
- Al Amthal Financing Company
- Alinma Bank
Key Topics Covered in the Report
- KSA Automotive Market Overview
- Landscape of Total Number of Cars in KSA Automotive Market, 2021-2024F
- KSA Automotive Finance Market Overview
- Ecosystem of KSA Auto Finance Market
- KSA Auto Finance Market Evolution and Business Cycle
- KSA Auto Finance Market Size, 2018-2021
- KSA Auto Finance Market Segmentation, 2021 (By Type of Vehicle Financed, By Tenure of New and Old Vehicles, By Type of Commercial Vehicle, Type of Lending Bank and By Type of Lenders)
- Industry Analysis of KSA Auto Finance Services
- Decision Making Parameter for Selecting Car Loan Vendor
- Trends and Developments in KSA Auto Finance Industry
- SWOT Analysis of KSA Auto Finance Industry
- Issues and Challenges in KSA Auto Finance Industry
- Government policies affecting the KSA Auto finance Industry
- Covid-19 Impact on the KSA Auto Finance Industry
- Competition Framework for KSA Auto Finance
- Future Outlook and Projections of the KSA Auto Finance Market, 2021-2026F
- Market Opportunities and Analyst Recommendations
- Analyst Recommendations
- Research Methodology
For more insights on the market intelligence, refer to below link:-
KSA Auto Finance Market
By Ken Research:-
Thailand Auto Finance Market Outlook to 2026F- Driven by Road Infrastructure Development and Economic Growth in the Country
According to Ken Research estimates, the Thailand Auto Finance Market grew from approximately THB 900 Bn in 2016 to approximately THB 1200 Bn in 2021, and is forecasted to grow further to ~ THB 1800 Bn by 2026F owing to the increasing purchasing power of the consumers and adoption of EVs. The automotive industry in Thailand is the largest in Southeast Asia and the 10th largest in the world.
Banks have been the dominant players as they have huge pre-built database that they leverage for their own advantage. Many Western brands are present in the country but Japanese brands have long had a dominant position in Thailand due to affordable prices.
UAE Auto Finance Market Outlook to 2026F- Driven by growing digital penetration, evolving vehicle ownership characteristics and rebates by the Government amidst systematically regulated vehicle ownership and financing policies by the regulatory authorities
According to Ken Research estimates, that UAE Auto Finance Market has decreased from 2016 to 2021 at a CAGR of -6.3% owing to government regulations, lifestyle changes and the COVID-19 lockdown but in the upcoming period, the growth is expected to normalize owing to the emergence of new and improved technologies. UAE Auto Finance Market is estimated to grow at a positive CAGR of ~17% in between 2022E and 2026F.
Malaysia Automotive Finance Market Outlook to 2026-Driven by exorbitant car prices, growing digital penetration, preference for owning passenger cars amidst systematically regulated car ownership policies by the Government
Number of passenger car ownership in Malaysia exceeded the population in Malaysia. Poor public transport infrastructure is one of the reasons. The used car industry is also enjoying a boom in business, and is reportedly on-track to register double-digit growth in sales. Import of vehicles still exceeds the exports resulting huge trade deficit. Government has taken various initiatives to support domestic manufacturing of vehicles by setting up companies like Proton and Perodua. Government also gives various incentives on purchasing of National Car. The market is at maturity stage with stable population, high ownership of car and small domestic commercial vehicle market, the opportunity of growth in Malaysia is quite limited.
Philippines Auto Finance Market Outlook to 2026- Driven by change in consumer spending, ease in provision of loans, improving technology and government support
Philippines Auto Finance Market is Expected to grow at a good CAGR in between 2021 and 2026F, one of the major determinants for the surging growth in coming years is the Increasing Population and growing income levels leading to rise in sales of cars , the rise in Auto Outstanding Loans in Philippines, the increase in Auto Loan Outstanding is expected a high growth rate between 2021F-2026F, High-Mid range car models are expected to witness strong success as the majority of car buyers segment includes the High Income people leading to larger Loan amount per customer, Expectation of high growth in car sales especially in Green cars as the government is building the infrastructure like the charging point at public parks . Higher digitization and usage of Artificial Intelligence and Machine Learning to improve customer convenience. New Business Models such as Subscription Lending, Shared ownership financing are coming into play which will lead the way for high growth rate in the Philippines Auto Finance Market.
Vietnam Auto Finance Market Outlook to 2026F– Driven by Digital Penetration and Dominance of Banks along with a Shift in Consumer Preference form 2W to 4W
Digitalization in Vietnam is anticipated to rise in the future which will lead to an increase in the Auto Finance market with multiple offline and e-platform players entering the market. A similar trend where post the pandemic, Vietnamese have been preferring to own a private vehicle to avoid public transportation is anticipated to occur. The accessibility to finance is expected to grow with an increase in the number of multi-finance companies. Also, Consumer preferences are more likely to shift to purchasing new vehicles with growing disposable income and status.
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Ankur Gupta, Director Strategy and Growth
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