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Global Automotive Finance Market (2021 to 2028) - Share, Size, Trends and Industry Analysis Report

·6-min read

Dublin, May 10, 2021 (GLOBE NEWSWIRE) -- The "Automotive Finance Market Share, Size, Trends, Industry Analysis Report, By Type; By Service Type; By Vehicle Type; By Purpose; By Provider; By Regions; Segment Forecast, 2021 - 2028" report has been added to ResearchAndMarkets.com's offering.

The global automotive finance market size is expected to reach USD 392.78 billion by 2028 according to a new study. The report gives a detailed insight into current market dynamics and provides analysis on future market growth.

The increasing penetration of passenger vehicles, rising modernization of vehicles, and development of autonomous vehicles are some factors expected to drive the market growth during the forecast period. Governments across the world are collaborating with automotive lenders to promote the adoption of electric vehicles.

The lenders are adopting technologies such as data analytics, cloud computing, artificial intelligence, and machine learning to offer timely services to customers and improve the overall experience. Integration of these technologies enables lenders to expand business operations and offer personalized offers by analyzing external databases, internal data, credit bureaus, social media, and online searches.

The different types of automotive finance include indirect finance and direct finance. In 2019, the direct automotive finance segment accounted for the highest market share. However, the demand for indirect automotive finance is expected to increase during the forecast period. Indirect automotive finance is offered by the vehicle dealer through auto finance companies, local banks, and the auto manufacturer's captive car fund company. Indirect automotive finance provides access to a wide network of lenders for consumers in varied credit situations.

On the basis of service type, the market is segmented into new vehicles and used vehicles. Automotive loan for new vehicles includes longer tenure owing to lower risks and manufacturer guarantee. The higher price of new vehicles and reduced risk of new vehicles result in disbursal of the higher loan amount at a lower interest rate. The down payment and EMI payments for new vehicles are lower as compared to used vehicles.

On the basis of vehicle type, the market is segmented into passenger vehicles, commercial vehicles, and others. There has been significant demand for automotive finance from the commercial vehicles segment owing to the high cost associated with them. The rising need to increase efficiency and reduce maintenance costs of transportation of commercial goods has significantly increased the demand for commercial vehicles, supporting the growth of this segment. Special initiatives are taken by governments in the form of subsidies, and special schemes for users of commercial electric vehicles also supplement the growth of this segment.

The market is segmented into banks, OEMs, financial institutions, credit unions, and others based on providers. In 2019, the banks segment accounted for the highest market share owing to benefits such as long repayment tenure, low-interest rate, and quick disbursement. Banks across the works are collaborating with Governments to promote the adoption of electric vehicles.

Countries such as China, India, France, and the U.S. have introduced several incentives and subsidies to encourage the use of electric vehicles. Several banks such as Bank of America have demonstrated their support to acceptance of alternative fuel vehicles by joining the US Department of Energy's Workplace Charging program.

On the basis of purpose, the market is segmented into leasing, loan, and others. In 2020, the loan segment dominated the global market. However, the demand for leasing is expected to increase during the forecast period. Automotive loan assists consumers in the purchase of a vehicle, while leasing involves payments allowing car possession for a pre-determined amount of time. Some benefits offered by leasing include lower monthly payments, reduced repair expenses, no loan approval, and easy return after the expiry of the lease term.

The demand from Asia Pacific is high owing to increase demand for passenger vehicles, rising disposable income, and modernization of vehicles. Growing concerns regarding air pollution and the increasing need for fuel-efficient vehicles have increased the number of electric cars in countries such as China, the U.S., India, and Japan, driving the growth of the market. The governments in the region have taken various initiatives in the form of subsidies and incentives to increase the acceptance of electric vehicles, thereby increasing the need for automotive finance.

Vendors in the global market are expanding their geographical presence and product portfolios to strengthen their presence. The developing nations of Asia Pacific would provide significant growth opportunities during the forecast period. Some of the major market participants in the global market include GM Financial Inc., Toyota Financial Services, Daimler Financial Services, Ford Motor, and Standard Bank Group Ltd.

Key Topics Covered:

1. Introduction
1.1. Report Description
1.2. Stakeholders

2. Executive Summary
2.1. Market Highlights

3. Research Methodology
3.1. Overview
3.2. Data Sources

4. Automotive Finance Market Insights
4.1. Automotive Finance - Industry snapshot
4.2. Automotive Finance Market Dynamics
4.3. Porter's Five Forces Analysis
4.4. PESTLE Analysis
4.5. Automotive Finance Market Industry trends

5. Automotive Finance Market Assessment by Type
5.1. Key Findings
5.2. Introduction
5.3. Indirect
5.4. Direct

6. Global Automotive Finance Market, by Service Type
6.1. Key Findings
6.2. Introduction
6.3. New Vehicles
6.4. Used Vehicles

7. Global Automotive Finance Market, by Vehicle Type
7.1. Key Findings
7.2. Introduction
7.3. Passenger Vehicles
7.4. Commercial Vehicles
7.5. Others

8. Automotive Finance Market Assessment by Provider
8.1. Key Findings
8.2. Introduction
8.3. Banks
8.4. OEMs
8.5. Financial Institutions
8.6. Credit Unions
8.7. Others

9. Global Automotive Finance Market, by Purpose
9.1. Key Findings
9.2. Introduction
9.3. Leasing
9.4. Loan
9.5. Others

10. Automotive Finance Market Assessment by Geography
10.1. Key findings
10.2. Introduction
10.3. Automotive Finance Market - North America
10.4. Automotive Finance Market - Europe
10.5. Automotive Finance Market - Asia-Pacific
10.6. Automotive Finance Market - Middle East & Africa
10.7. Automotive Finance Market - Latin America

11. Competitive Landscape
11.1. Expansion and Acquisition Analysis
11.2. Partnerships/Collaborations/Agreements/Exhibitions

12. Company Profiles
12.1. Bank of America
12.2. Chase Auto Finance
12.3. GM Financial Inc.
12.4. Toyota Financial Services
12.5. BNP Paribas
12.6. Daimler Financial Services
12.7. Ford Motor Credit Company
12.8. HSBC Holdings plc
12.9. Wells Fargo & Co
12.10. Volkswagen Financial Services

For more information about this report visit https://www.researchandmarkets.com/r/aubnqy

CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood, Senior Press Manager press@researchandmarkets.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900