Dublin, Nov. 14, 2024 (GLOBE NEWSWIRE) -- The "Automotive Finance Market - Forecasts from 2024 to 2029" report has been added to ResearchAndMarkets.com's offering.
The Automotive Finance Market is projected to grow at a CAGR of 5.41% from estimated value of US$297.009 billion in 2024 to US$386.442 billion in 2029.
The automotive finance market is driven by the improving economic conditions and increasing sales and demand for vehicles across the globe. The growth in disposable income among the general public and the GDP of several growing economies are contributing to consumers being confident in taking loans or leases for vehicles when they can pay it off with a stable and good income. The affordable interest rates set by central banks influence borrowing costs for consumers and businesses as they get interested in buying vehicles when they get good interest rates on automotive loans and leases.
The government regulations for consumer protection laws and financial regulations build trust among customers for taking auto loans and innovations such as online loan applications, digital payment platforms, and automated underwriting processes. This makes auto finance processes easier for the consumer, all contributing to automotive finance market growth over the forecast period.
Moreover, the increase in vehicle affordability and pricing makes it easy for consumers to purchase automobiles using automotive finance and the credit availability and risk assessment that helps assess borrower creditworthiness are crucial factors in the auto finance market and are driving the market growth. The shifts in consumer preferences that include preferences for vehicle types and ownership models, competition among auto finance providers, global economic trends, trade policies, and market integration efforts are all anticipated to boost the automotive finance market over the forecast period.
MARKET DRIVERS:
Growth in economies and vehicle sales across the globe is predicted to propel the market:
The growth in economies with rapid industrialization and urbanization in several countries across the globe drives the automotive finance market. This is further leading to GDP growth, rising employment rates which are giving job security to people that grow consumer confidence to spend money on vehicles, and affordable interest rates that positively impact the automotive finance market. The stronger economic conditions of a region lead to customers spending high amounts on vehicles and getting easier access to credit from banks or auto loan service providers, which helps in the automotive finance market growth.
The demand for automobiles directly affects the automotive finance market because the growth in vehicle sales is directly proportional to the growing need for auto loans or leases for purchasing vehicles. The global rise in the popularity of EVs is also a contributing factor in the rising sales of vehicles as several governments are promoting and providing subsidies on EVs, which is making it easy for consumers to take auto loans, which in turn is predicted to propel the automotive finance market growth over the forecast period. For instance, the Japanese government provided a maximum of 800,000 Japanese Yen or 7,200 US Dollars for CEV or clean energy vehicles subsidies given per vehicle in 2021.
The growing credit availability, vehicle affordability, and competitive landscape in the automotive finance industry are projected to drive the market.
The growing consumer demand for affordable vehicles and auto loans among the general public is driving several key automobile manufacturers to work together with auto finance companies to deliver a product range that is affordable with suitable interest rates according to the consumer's need. Therefore, changes in vehicle prices, including incentives, discounts, and leasing terms, influence consumers' purchasing decisions and financing preferences. Affordable pricing and attractive financing offers can stimulate demand for vehicles, which positively affects the automotive finance market.
Additionally, the availability of credit, the criteria used for assessing borrower creditworthiness, and advancements in technology have transformed the automotive finance industry, leading to innovations such as online loan applications, digital payment platforms, and automated underwriting processes. These are critical factors that drive the automotive finance market's growth over the forecast period.
MARKET RESTRAINT:
Automotive finance, despite having an important role in making it easy for consumers to purchase or lease vehicles and convenient to apply for automotive loans with technological advancements, can face various constraints that can impact the automotive finance market negatively in the forecast period. For instance, the uncertainties in the global economy leading to varying incomes of people across the globe, coupled with constantly changing interest rates for loans, are hindering the automotive finance market.
Furthermore, the changing government regulations and compliances for loans or leases may differ with the policies in the market and several automotive finance service providers can find it difficult to comply with these changing regulations. Thus, anticipated to hinder the automotive finance market growth over the forecast period.
The growth is projected to be prominent in the North American region.
The North American region is expected to show major growth in the automotive finance market. A growing number of automotive finance service providers in several countries, such as the USA, Canada, and Mexico, are making it easy for consumers to purchase vehicles with suitable interest rates.
Additionally, the growth in automobile sales across the region is contributing to the rise in the need for auto loans among the general public and, therefore, is positively impacting the automotive finance market in the North American region over the forecast period. The Asia-Pacific region, with rapid growth in the automotive industry region, is expected to show significant growth in the automotive finance market.
Products Offered by Key Companies:
- HDB Financial Services: Auto loan is provided for new car purchases, used car purchases, and used car re-finance coupled with the advantages of low car loan interest rates.
- Muthoot Fincorp: Auto loan has flexible repayment options, attractive interest rates with schemes, and quick and easy documentation.
Key Developments:
- In November 2023,Bank of America Corporation announced the launch of new and innovative digital tools so that clients can get pre-qualified for auto financing, learn how much they may be able to borrow, and estimate their terms without any impact on credit scores.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 140 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value (USD) in 2024 | $297.01 Billion |
| Forecasted Market Value (USD) by 2029 | $386.44 Billion |
| Compound Annual Growth Rate | 5.4% |
| Regions Covered | Global |
Companies Featured
- Tata Motors Finance
- Genpact
- Solifi
- Bajaj Auto Finance
- Muthoot FinCorp
- Accenture
- Sopra Banking Software
- SAIC Motor
- Alfa Financial Software
- Lincoln
Segmentation:
By Provider Type
- Bank
- OEMs
- Others
By Purpose Type
- Loan
- Lease
By Vehicle Type
- Passenger Cars
- Commercial Vehicles
By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Europe
- United Kingdom
- Germany
- France
- Italy
- Spain
- Middle East and Africa
- Saudi Arabia
- UAE
- Asia Pacific
- Japan
- China
- India
- South Korea
- Taiwan
- Thailand
- Indonesia
For more information about this report visit https://www.researchandmarkets.com/r/idc788
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