Increasing Digitization: Multi-finance companies today offer convenient facilities in terms of online presence. Automotive Financing Companies are increasingly moving towards higher technological advancements to improve operational profits as well as customer experience, which includes digital installment payment system, zero or very less face-to-face dealing, and simpler procedure, e.g. - Kredit Pintar. Car dealerships are expected to increasingly bring the experience of car shopping online by range of ways such as providing digital showrooms as well as e-finance. In the past, 5 – 10 years, Indonesia is witnessing a new wave of digital enhancements with several new fin-tech platforms for aggregation, peer – to – peer lending and more coming in the market. Some of the most well-known of these start- ups are- broom, cermati etc.
Revision of down payment rates: Financial authority of Indonesia (OJK) has allowed lower down payment rates for multi finance companies and banks whose NPF is less than 1%. This is expected to increase the demand for Auto loans tremendously in future.
Low Interest Rates: Credit lending companies have lowered the interest rates to increase the loan taking capacity of customers; further supported by the Government’s efforts to increase financial support SMEs as SMEs contribute to major share of the total GDP of Indonesia. And also, the policies to take credit have been relaxed significantly to ease the process; strict regulations and verification of long-list of documents have been reduced.
Expanding urban population: Growing urban population and the increasing buying capacity as well as the awareness of the consumers has made automobile as well as auto finance industry to grow hand-in-hand.
Growth of E-vehicles: That Indonesian EV sector is still in its infancy but these also show that market interest has grown significantly. Electrum, a joint venture company between Indonesia decacorn Gojek and energy firm TBS Energi Utama (TBS), synergize to accelerate the development of the most complete and integrated electric vehicle ecosystem in Indonesia. Numerous policies have been issued by the government, to further boost the EV sector, such as Positive Investment List (PIL) as per which the companies that participate in development of EV sector are eligible to benefits like ease of attaining business licenses and leveraging various tax incentives.
Analysts at Ken Research in their latest publication “Indonesia Auto Finance Industry Outlook to 2026 - 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” by Ken Research observed that Indonesia Auto Finance Market is in the Growing Phase with Banking Institutions and NBFCs leading the Market and Online Aggregators Platforms entering the Market. Increasing Digitisation, Positive Outlook for E-Vehicles, Revision of Down payments, Expanding Population and Lower Interest Rates, are expected to contribute to the market growth over the forecast period. The Indonesia Auto Finance Market is expected to see high growth rate over the forecasted period 2021-2026F.
Key Segments Covered:-
Indonesia Auto Finance Market
By Category of Lenders (by Credit Dispersed), 2021 & 2026F:
Captive Financing Companies
Banks
NBFCs
By Type Of Vehicles (by Credit Dispersed), 2021 & 2026F:
Two Wheelers
Three Wheelers
Four Wheelers
By Type of Ownership (by Credit Dispersed), 2021 & 2026F:
Used Cars
New Cars
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By Category of Vehicles (by Credit Dispersed), 2021 & 2026F:
Passenger Vehicles
Commercial Vehicles
By Duration of Loan (by Credit Dispersed), 2021 & 2026F:
1 Year
2 Year
3 Year
3+ Years
By Geographical Location (by Credit Dispersed), 2021 & 2026F:
Rural & Semi Urban
Urban
Metropolitan
Key Target Audience:-
Banks and its Subsidiaries
NBFCs
Captive Finance Companies
Government and Institutions
Automobile Companies
Car Dealers
Government and Institutions
Existing Auto Finance Companies
OEM Dealerships
New Market Entrants
Investors
Auto mobile Associations
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Time Period Captured in the Report:-
Historical Period: 2016-2020
Base Year: 2021
Forecast Period: 2022– 2026F
Companies Covered:-
Bank CIMB Niaga
Bank Rakyat Indonesia
Danamon Bank (Adira Dinamika Finance)
Mandiri Bank (Mandiri Tunas Finance)
Megabank (WOM)
Bank Negara Indonesia
BCA Bank
Bank Jasa Jakarta
Cekaja
ACC Finance
Oto Multiartha
Radana Bhaskara
Adira Finance
Indomobil Multi Jasa
Mitsui Auto Finance
Mandiri Tunas Finance
Rabana Investindo
Maybank Finance
Mobil88
OLX Indonesia
Mobil123
Carmudi
Oto.com
Diamond Smart Auto
Carro
Key Topics Covered in the Report:
Demographic overview and major industries of Indonesia
Economic Overview of Indonesia
Trade Scenario of Indonesia
Indonesia Automotive Market – Vehicle sales
Indonesia Automotive Market - Major OEM brands basis passenger cars sales
Indonesia Auto Finance Ecosystem
Indonesia Auto Finance Market Value Chain Analysis
Major Types of auto loans available in the Indonesia Auto Finance Market
Growth Drivers of Indonesia Auto Finance Industry
Decision making Parameters for selecting Auto loan Vendor
SWOT Analysis of the industry
Trends and Developments in the Industry
Issues and challenges in the industry
Government initiatives in the industry
COVID-19 Impact on the Indonesia Auto Finance Industry
Customer Journey
Indonesia Auto Finance Market Sizing
Indonesia Auto Finance Market Segmentation
Indonesia Automotive Finance Aggregator
Indonesia Auto Finance Market - Future Sizing
Indonesia Auto Finance Market - Future Segmentation
Digital Disruptions in the Indonesia Auto Finance Industry
Analyst Recommendations
For more insights on the market intelligence, refer to below link:-
Indonesia Auto Finance Industry
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