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.
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 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.
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
- Banks
- NBFC
- OEMS/Captives
By Type of Motor Vehicle:
- Passenger
- Commercial
By Type of Commercial Motor Vehicle:
- HCV
- MCV
- LCV
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By Type of Passenger Motor Vehicle:
- 4W
- 2W
By Type of Vehicle Financed:
- New
- Used
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:
- Historical Year: 2018-2021
- Base Year: 2021
- Forecast Period: 2022– 2026F
Companies Covered:-
- 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
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