The report titled “Indonesia Car Finance Market Outlook to 2024: Growing
Prominence of Captive Finance Companies Backed by Surging Car Sales to Drive
Market Growth’ provides a comprehensive analysis of
the Indonesia Car finance market including market evolution, market overview,
market genesis, market size and market segmentation of various Players in the
Market. Extensive focus has been placed in quantifying the credit disbursed and
Car loans outstanding and a number of vehicles financed. The report covers
aspects such as market segmentation (by loan tenure, new and used vehicles and
type of Financial Institutions), customer perspective in the market and
snapshot on Various Verticals of Multifinance Companies, Online Ad Listing
sites and Analysis of Passenger Car Companies. Competitive landscape of major
lenders including Bank of Central Asia (BCA Finance), Mandiri Bank (Mandiri
Tunas Finance), Danamon Bank (Adira Dinamika Finance), CIMB Niaga , Bank Rakyat
Indonesia, Bank Negara Indonesia, Megabank (WOM), ACC Finance, BFI Finance, Oto
Multiartha, MPM Finance, Rabana Investindo, Toyota Astra Finance (Toyota and
Daihatsu), Dipo Star Finance (Mitsubishi), Bussan Car Finance (Yamaha), Suzuki
Car Finance (Suzuki). The report also covers future industry analysis (by
credit disbursed and new and used Car Finance), future market segmentation,
growth opportunities, up-coming business models, government regulations and
analyst recommendations.
The Car Finance Market in Indonesia
witnessed steady growth during the period 2013-2018, owing to an increase in used Car vehicle sales
over the same period. The market is dominated by multi finance companies
which are backed by various Multinational banks catering majorly to the
middle-class population. There are around 200 multi finance companies in
Indonesia (OJK Bank Report). Consumer finance accounts for 90% of the total
value of multi finance industry. Trends in the market were largely
stimulated by low-interest rates in the Economy. Some challenges faced during the period in
the market were the rising loan default rates, unstable vehicle sales and a
pullback on loan issues lead by banks, in the latter half of
the research period.
Indonesia Car Finance Market Segmentation
By New and Used Cars: The car Finance Market in Indonesia is segmented into New and Used Car finance
with New Cars finance holding a majority share of the total Credit
Disbursed in the market in 2019P. The major drivers behind the growth include rising sales of used
vehicles as well as the decreasing prices of retail models in the market, which
makes it attractive to buy cars.
By Tenure of Loan (New Car and Used Cars): The loan tenure selected by the
customer depends on factors such as the price of the car, income level of the
customer, flexible scheme options and other social factors such as family size
and lifestyle of the individual. The maximum tenure allotted for a car loan by both banks and private
finance companies is five years for new; however, the situations can change
depending on a particular customer. It has been observed that people opting for 4-year
loan tenure has accounted for Majority of the new cars financed in 2019P followed by 3 Years of the loan
tenure. Used cars usually, the tenure for a
loan does not exceed 3 years.
By Banks, NBFCs and Captives (New Car and used
Cars): Commercial banks have accounted for a Major Share in the
Overall Car Finance Market of Indonesia on the basis of new Cars Financed.
Second position in the Market was captured by NBFCs and Multifinance Companies, who operate in the market, the nonfinancial institution's Captive finance
companies have contributed the remaining part of the credit disbursed for new
car financing in 2019P.
Recovery of The Indonesian economy,
lower financing rates, and improved business environment have positively impacted the consumer confidence index in
Indonesia. This has resulted in increasing car sales in 2019P out of which 75.0% are financed
by banks and other nonfinancial institutions. In order to stimulate the economic growth of
the country, Otoritas Jasa Keuangan (OJK) reduced the down payment requirements in effect increased the
Loan to value ratio in 2015. OJK has also introduced the Zero Don Payment option for people
with a good Credit Score. This reform is expected to increase the sale of
passenger and commercial cars as more number of people can avail car finance.
Competition in the market is extremely fragmented. The Major
lending institution types in the market are Banks, Captives, Multi Finance
Companies, they hold a Fragmented share in the lending space for New Cars, and
similarly banks dominate the Used Car segment but that is again very
fragmented.
Over the forecast period, Indonesia
Car Finance market is expected to be positive if there is a continuous need for Car among the
population. Multiple fin-tech startups have also come up in the country’s
financial sector which poses a threat to conventional finance companies and
banks. These startups have developed products to augment the digitalization of the banking sector. This
includes digital payments, online lending, online aggregation, and remote
banking facilities which made the customer lending process uncomplicated and
simple further facilitating the car finance market in the country. Banks and
Captives are expected to continue their leading position in the market due to their vast
networks and range of products. In addition to that, the Indonesia market is
likely to witness a decline in Car sales which threatens the growth of a
number of loans issued in the future.
Key Segments Covered:-
By New and Used Cars
New cars
Used cars
By Lender Institutions
Banks
Captives
Multi
Finance Companies (NBFCs)
By Loan Tenure between New and Used Cars
Two Years
Three Years
Four Years
Five Years
One year
Five Years
or more
Key Target Audience
Existing Car
Finance Companies
Banks
Captive
Finance Companies
Credit
Unions
Private
Finance Companies
New Market Entrants
Government
Organizations
Investors
Carmobile
Associations
Carmobile
OEMs
Time Period Captured in the Report:-
Historical
Period: 2013-2019P
Forecast
Period: 2019P-2024
Key Companies Covered:-
Banks
Bank of
Central Asia (BCA Finance)
Mandiri Bank
(Mandiri Tunas Finance)
Danamon Bank
(Adira Dinamika Finance)
CIMB Niaga
Bank Rakyat
Indonesia
Bank Negara
Indonesia
Megabank
(WOM)
NBFCs
ACC Finance
BFI Finance
Oto
Multiartha
MPM Finance
Batavia
Prosperindo
Radana
Bhaskara
Indomobil
Multi Jasa
Mandala Multifinance
Tifa Finance
Adira
Quantum Multifinance
Clemont Finance Indonesia
Captives
Toyota Astra Finance (Toyota and Daihatsu)
Dipo Star
Finance (Mitsubishi)
Bussan Auto
Finance (Yamaha)
Suzuki Auto
Finance (Suzuki)
Key Topics Covered in the Report:-
Value Chain Analysis of Indonesia Car Finance
Market, 2019P
Indonesia Car Finance Market Segmentation
Major Trends and Development in Indonesia Car
Finance Market
Product
Feature on Indonesia Car Finance Market
For More Information On The Research Report,
Refer To Below Link:-
Related Reports by Ken Research:-
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