Gurugram, India, Jan. 20, 2023 (GLOBE NEWSWIRE) --

Embracing digitalization: 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 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.

Government policies: 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:

By Tenure of Loan for Old Vehicles:

Key Target Audience

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Time Period Captured in the Report:

Companies Covered:-

Key Topics Covered in the Report

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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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