Automotive Financing Market

The Automotive Financing Market by Source Types (Banks, Credit Union, OEMs, and Financial Institutions), Type (New Car and Used Car), Vehicle Type (Commercial Vehicle and Passenger Cars), Purpose Type (Loan and Lease) and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021 – 2028

  • Report ID: BFSI-3071
  • Author: Growth Market Reports
  • Rating: 4.8
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  • No. Of Pages: 177
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The global automotive financing market size is projected to register a substantial CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the reaction towards macroeconomic changes, shifting customer spending behavior, and new regulation for environment sustainability the auto-financing sector has evolved.

Automotive Financing Market Key Takeaways

The goal of car finance firms is to give cash to customers who want to buy or lease a personal or commercial vehicle. Technical advancements and increasing mobility has shoot up the demands and leads to expanding the industries client base at a rapid pace. Excessive expenditures in autonomous vehicles, as well as quick financing from dealers, banks, and credit unions, are driving the market.

Governments throughout the world are increasing their expenditures in EV charging stations and hydrogen fueling stations, as well as providing incentives to purchasers. This has led to a growing demand for electric vehicles in the market and creating immense opportunities for automotive financing companies.

EV sales in India, excluding E-rickshaws, increased by 20% to 1.56 lakh units in FY20, driven mostly by two-wheelers. According to the NITI Aayog and the rocky mountain institute (RMI), India's EV finance market is expected to reach Rs. 3.7 lakh crore (US$ 50 billion) during forecast period.

According to statistics from the China Banking Association, the current consumer vehicle finance penetration rate in China is close to 50%, whereas the average penetration rate in countries with more established auto financing sectors is over 70%.

Market Trends, Drivers, Restraints, and Opportunities

  • Electrification of transportation and increasing demand for electric vehicles are anticipated to drive the market in coming years.
  • Companies launching new generation vehicle with advance features are anticipated to surge the market.
  • Growing financial inclusion in rural areas is expected to boost the market during the forecast period.
  • Developments of road, highways, and national highways leads to increased connectivity are expected to fuel the market during the forecast period.
  • Rapid growth of the car rental market is key factors fueling the market in the coming years.
  • Rising bad debts due to non-repayments act as a key challenge that can hamper the market growth.
  • Rising inflation and increasing number of job loss are expected to hinder the market.
  • Digitalization and low interest rates are projected to create lucrative opportunities for the market players.

Scope of the Report

The report on the global automotive financing market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes

Details

Report Title

Automotive Financing Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2020

Historic Data

2018–2019

Forecast Period

2021–2028

Segmentation

Source Types (Banks, Credit Union, OEMs, and Financial Institutions), Type (New Car and Used Car), Vehicle Type (Commercial Vehicle and Passenger Cars), Purpose Type (Loan and Lease)

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast

Key Players Covered in the Report

Ally Financial Inc.; Hitachi Capital Asia Pacific Pte. Ltd.; Bank of America Corporation; Toyota Financial Services; Capital One Financial Corporation

Automotive Financing Market Segment Insights

The banks segment is projected to constitute a key market share

Based on application types, the automotive financing market is divided into banks, credit union, OEMS, and financial institutions. The banks segment is expected to account for a key share of the market during the forecast period owing to low interest rates and due to regularization of banks by regulatory bodies bringing trust for banks as a lender.

The new car segment is expected to expand at a rapid pace

In terms of types, the automotive financing market is segmented into new car and used car. The new car segment is expected to hold a key share of the market in the coming years due to increased demand for new generation vehicles which are power efficient and best in class performance.

The passenger cars segment is anticipated to expand at a high CAGR

On the basis of vehicle types, the automotive financing market is segregated into commercial vehicle and passenger cars. The passenger cars segment is expected to constitute a key share of the market during the forecast period owing to increasing disposable income, improving life style, and desire to own a car.

The loan segment is projected to hold a key market share

Based on purpose type, the automotive financing market is divided into loan and lease. The loan segment is expected to represent a key share of the market during the forecast period owing to it gives a right and feel of owing a car to the buyer. Moreover, paperless or minimal documentation finance and low interest rates are making loan more accessible to large population.

Asia Pacific is anticipated to dominate the market

On the basis of regions, the automotive financing market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to dominate the market during the forecast period. The growth of market is attributed to increasing income and rising spending in countries such as India, China, and Japan also rapid growth of automotive industry in the region.

Automotive Financing Market By Regions

Segments

The global automotive financing market has been segmented on the basis of

Source Types

  • Banks
  • Credit Union
  • OEMs
  • Financial Institutions

Type

  • New Car
  • Used Car

 Vehicle Type

  • Commercial Vehicle
  • Passenger Cars

 Purpose Type

  • Loan
  • Lease

Regions

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Key Players

  • Ally Financial Inc.
  • Hitachi Capital Asia Pacific Pte. Ltd.
  • Bank of America Corporation
  • Toyota Financial Services
  • Capital One Financial Corporation

Competitive Landscape

Key players competing in the automotive financing market include Ally Financial Inc.; Hitachi Capital Asia Pacific Pte. Ltd.; Bank of America Corporation; Toyota Financial Services; and Capital One Financial Corporation.

Some of these players coming up with several strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launch to increase/enhance their market shares.

Automotive Financing Market By Key Players

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Automotive Financing Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. Automotive Financing Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Automotive Financing Market - Supply Chain
  4.5. Global Automotive Financing Market Forecast
     4.5.1. Automotive Financing Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Automotive Financing Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. Automotive Financing Market Absolute $ Opportunity
5. Global Automotive Financing Market Analysis and Forecast by Types
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Types
     5.2.2. Y-o-Y Growth Projections by Types
  5.3. Automotive Financing Market Size and Volume Forecast by Types
     5.3.1. New Car Used Car
  5.4. Absolute $ Opportunity Assessment by Types
  5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Automotive Financing Market Analysis and Forecast by Region
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Region
     6.2.2. Y-o-Y Growth Projections by Region
  6.3. Automotive Financing Market Size and Volume Forecast by Region
     6.3.1. North America
     6.3.2. Latin America
     6.3.3. Europe
     6.3.4. Asia Pacific
     6.3.5. Middle East and Africa (MEA)
  6.4. Absolute $ Opportunity Assessment by Region
  6.5. Market Attractiveness/Growth Potential Analysis by Region
  6.6. Global Automotive Financing Demand Share Forecast, 2019-2026
7. North America Automotive Financing Market Analysis and Forecast
  7.1. Introduction
     7.1.1. Basis Point Share (BPS) Analysis by Country
     7.1.2. Y-o-Y Growth Projections by Country
  7.2. North America Automotive Financing Market Size and Volume Forecast by Country
     7.2.1. U.S.
     7.2.2. Canada
  7.3. Absolute $ Opportunity Assessment by Country
  7.4. North America Automotive Financing Market Size and Volume Forecast by Types
     7.4.1. New Car Used Car
  7.5. Basis Point Share (BPS) Analysis by Types
  7.6. Y-o-Y Growth Projections by Types
  7.7. Market Attractiveness/Growth Potential Analysis
     7.7.1. By Country
     7.7.2. By Product Type
     7.7.3. By Application
  7.8. North America Automotive Financing Demand Share Forecast, 2019-2026
8. Latin America Automotive Financing Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
     8.1.3. Latin America Average Pricing Analysis
  8.2. Latin America Automotive Financing Market Size and Volume Forecast by Country
      8.2.1. Brazil
      8.2.2. Mexico
      8.2.3. Rest of Latin America
   8.3. Absolute $ Opportunity Assessment by Country
  8.4. Latin America Automotive Financing Market Size and Volume Forecast by Types
     8.4.1. New Car Used Car
  8.5. Basis Point Share (BPS) Analysis by Types
  8.6. Y-o-Y Growth Projections by Types
  8.7. Market Attractiveness/Growth Potential Analysis
     8.7.1. By Country
     8.7.2. By Product Type
     8.7.3. By Application
  8.8. Latin America Automotive Financing Demand Share Forecast, 2019-2026
9. Europe Automotive Financing Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Europe Average Pricing Analysis
  9.2. Europe Automotive Financing Market Size and Volume Forecast by Country
     9.2.1. Germany
     9.2.2. France
     9.2.3. Italy
     9.2.4. U.K.
     9.2.5. Spain
     9.2.6. Russia
     9.2.7. Rest of Europe
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. Europe Automotive Financing Market Size and Volume Forecast by Types
     9.4.1. New Car Used Car
  9.5. Basis Point Share (BPS) Analysis by Types
  9.6. Y-o-Y Growth Projections by Types
  9.7. Market Attractiveness/Growth Potential Analysis
     9.7.1. By Country
     9.7.2. By Product Type
     9.7.3. By Application
  9.8. Europe Automotive Financing Demand Share Forecast, 2019-2026
10. Asia Pacific Automotive Financing Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Asia Pacific Average Pricing Analysis
  10.2. Asia Pacific Automotive Financing Market Size and Volume Forecast by Country
     10.2.1. China
     10.2.2. Japan
     10.2.3. South Korea
     10.2.4. India
     10.2.5. Australia
     10.2.6. Rest of Asia Pacific (APAC)
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Asia Pacific Automotive Financing Market Size and Volume Forecast by Types
     10.4.1. New Car Used Car
  10.5. Basis Point Share (BPS) Analysis by Types
  10.6. Y-o-Y Growth Projections by Types
  10.7. Market Attractiveness/Growth Potential Analysis
     10.7.1. By Country
     10.7.2. By Product Type
     10.7.3. By Application
  10.8. Asia Pacific Automotive Financing Demand Share Forecast, 2019-2026
11. Middle East & Africa Automotive Financing Market Analysis and Forecast
  11.1. Introduction
     11.1.1. Basis Point Share (BPS) Analysis by Country
     11.1.2. Y-o-Y Growth Projections by Country
     11.1.3. Middle East & Africa Average Pricing Analysis
  11.2. Middle East & Africa Automotive Financing Market Size and Volume Forecast by Country
     11.2.1. Saudi Arabia
     11.2.2. South Africa
     11.2.3. UAE
     11.2.4. Rest of Middle East & Africa (MEA)
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Middle East & Africa Automotive Financing Market Size and Volume Forecast by Types
     11.4.1. New Car Used Car
  11.5. Basis Point Share (BPS) Analysis by Types
  11.6. Y-o-Y Growth Projections by Types
  11.7. Market Attractiveness/Growth Potential Analysis
     11.7.1. By Country
     11.7.2. By Product Type
     11.7.3. By Application
  11.8. Middle East & Africa Automotive Financing Demand Share Forecast, 2019-2026
12. Competition Landscape
  12.1. Global Automotive Financing Market: Market Share Analysis
  12.2. Automotive Financing Distributors and Customers
  12.3. Automotive Financing Market: Competitive Dashboard
  12.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     12.4.1. Ally Financial Inc. Hitachi Capital Asia Pacific Pte. Ltd. Bank of America Corporation Toyota Financial Services Capital One Financial Corporation
The global automotive financing market has been segmented on the basis of

Source Types

  • Banks
  • Credit Union
  • OEMs
  • Financial Institutions

Type

  • New Car
  • Used Car

 Vehicle Type

  • Commercial Vehicle
  • Passenger Cars

 Purpose Type

  • Loan
  • Lease

Regions

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Key Players

  • Ally Financial Inc.
  • Hitachi Capital Asia Pacific Pte. Ltd.
  • Bank of America Corporation
  • Toyota Financial Services
  • Capital One Financial Corporation

Key players competing in the automotive financing market include Ally Financial Inc.; Hitachi Capital Asia Pacific Pte. Ltd.; Bank of America Corporation; Toyota Financial Services; and Capital One Financial Corporation.

Some of these players coming up with several strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launch to increase/enhance their market shares.

Automotive Financing Market By Key Players

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