Tuesday, November 7, 2017

Philippines Lubricants Market Outlook to 2021: Ken Research

Ken Research announced its latest publication on “Philippines Lubricants Market by Type (Mineral, Semi-Synthetic and Synthetic), by Application (Automotive – Passenger, Commercial, Marine and Aviation and Industrial – Mining, Construction, Manufacturing, Iron and Steel, Agriculture, Electricity and Medical) - Outlook to 2021” suggested a rapid growth in the Philippines lubricants market, majorly driven by boosting crude oil imports, thus assisting market players to offer more lubricants in the country. The stakeholders of this report include lubricant manufacturers, dealers, companies involved in research, automotive workshop owners in the Philippines and the new entrants and venture capitalists who wish to invest in lubricant market in future.
Detailed comparative analysis of major lubricant market players has also been provided. Various marketing analysis factors such as trends and developments and SWOT analysis are also added in the study. The future analysis of the overall Philippines lubricants market has also been discussed along with recommendations from analyst view.
Philippines Lubricant Market Size
There has been a tremendous growth in the consumption of both automotive and industrial lubricants during 2011 to 2016. Consumption of lubricants in the Philippines has been reported at ~million liters in 2011, which witnessed a healthy growth over the subsequent five years, recording consumption of ~ million liters in 2016, at a CAGR of ~% during the same period. Increasing sales of vehicles in the country has been the strongest factor affecting the lubricants market revenues in a positive manner. The overall revenues generated by the market players in the Philippines lubricants market augmented to USD ~ million during 2016 from USD ~ million during 2011, at a CAGR of ~% between 2011 and 2016. The increased sales were also supported by the continuous improvement in the refining process of the existing players and the up gradation of refineries by the lubricants giants operating in the country.
Philippines Lubricant Market Segmentation
Mineral lubricants have dominated the overall lubricant consumption in the Philippines during 2011 and 2016. Since, these lubricants need to be changed more often; the market has witnessed a decline in demand from ~% share in the consumption in 2011 to ~% share in 2016. The share of semi-synthetic lubricants in the total consumption has inclined from ~% in 2011 to ~% in 2016, owing to an increased use of such products by both the customers of synthetic and mineral lubricants. The share of synthetic based oils in the total consumption has inclined from ~% in 2011 to ~% in 2016, majorly due to their ability to offer superior lubrication in modern car engines as compared to mineral and semi-synthetic lubricants.
Automotive lubricants have gathered the largest share in the market in terms of consumption. The share of automotive lubricants in the total consumption has inclined from ~% in 2011 to ~% in 2016. The boosting sales of automobiles in the country have significantly led to the increased consumption of automotive lubricants during 2011-2016. The share of industrial lubricants has declined as compared to the automotive segment from 2011 to 2016. The share of industrial lubricants in the total consumption has declined from ~% in 2011 to ~% in 2016.
Automotive and Industrial Lubricant Market Size
There has been a significant growth in the consumption of automotive lubricants in the Philippines over the period 2011-2016. There volume of lubricants consumed by the vehicle owners in the country inclined from ~ million liters in 2011 to ~ million liters during 2016. It has been witnessed that automobile owners started shifting to the use synthetic oils from other conventional lubricants during the same period. The industrial sector in the Philippines has been growing over the recent past. This has led to the installation of more machinery and equipments required by the market players operating in construction, manufacturing, agriculture, mining, iron and steel, electricity and healthcare sector. The overall consumption of industrial lubricants inclined to ~ million liters during 2016 from ~ million liters during 2011.
Market Share of Major Players in the Philippines Lubricants Market
Shell was the leading player in terms of sales volume from in the Philippines in 2016. Shell dominated the overall market with ~ million liters sale during 2016, due to the wide product range offered by the company for various automotive engines in the country. With the presence of more than ~ service stations and the increasing demand for Petron Blaze 100, which matches the European quality standards, Petron has proved to be the second largest player in the lubricants market in the Philippines in 2016, contributing ~ million liters to the overall sales volume. Chevron grabbed a significant position in terms of sales volume as it is the first American oil marketer in the country which focuses on selling imported lubricants. The player sold ~ million liters of lubricants during 2016. Exxon Mobil was also amongst the major market players and contributed ~ million liters to the market volume during the same year.
Philippines Lubricant Market Future Outlook and Projections
The overall consumption of lube oils in the Philippines lubricants market is projected to increase to ~ million liters during 2021 from ~ million liters during 2016, at a CAGR of ~% during the same period. The revenues generated by the lubricants market players are projected to boost from USD ~ million in 2016 to USD ~ million in 2021, recording a robust CAGR of ~% during the period 2016-2021. The economy of the Philippines is expected to witness more than ~ new manufacturing units, wherein the consumption of lube oils for machines is projected to increase during 2016-2021. The initiative of the government and tourism department with a long term view to connect all islands of the Philippines through sea route is expected to enhance the marine transportation, thereby leading to more lubricants being consumed by the ships and boats.
Automotive lubricants are anticipated to dominate the overall consumption of lube oils in the Philippines with ~% in 2021. The continuous rise in the sales of vehicles due to rising per capita income of the country is expected to amplify the consumption of semi-synthetic and synthetic lubricants, which are most preferred for engines installed in new and upcoming cars. The consumption of industrial lubricants is also estimated to surge to ~ million liters due to the establishments of new manufacturing units and the installation of machinery in the plants.
Key Topics Covered in the Report:
Philippines Lubricant Market Size by Consumption Volume and Revenue
Market Segmentation - By Type of Lubricants (Mineral-Based, Semi-synthetic and Synthetic); By Application (Automotive and Industrial)
Philippines Automotive Lubricant Market Size by Consumption Volume
Trends Lubricant Philippines
Engine Oil Market Philippines
Lubricant Import in Philippines
Industry Growth Lubricant Philippines
PTT Lubricant Market Share Philippines
Philippines Industrial Lubricant Market Size by Consumption Volume
Brake Fluid Market Philippines
Hydraulic Oil Market Philippines
Gear Oil Industry Size Philippines
Value Chain Analysis for the Philippines Lubricants Market
SWOT Analysis for the Philippines Lubricants Market
Automotive Gear Oil Market Philippines
Metal Working Fluids Market Philippines
Market Share Lubricant Players Philippines
Trends, Developments, Growth Drivers and Restraints in the Philippines Lubricants Market
Market Share of Major Players in the Philippines Lubricants Market
Company Profiles of Major Lubricant Market Players               
Future Outlook for the Philippines Lubricant Market 
Analyst Recommendation
Macro-Economic Factors Impacting the Philippines Lubricant Market
Competition Lubricant Philippines
Opportunities in Lubricant Industry
Growth Drivers Lubricant Philippines
For more information on the research report, refer to below link:
Related Reports by Ken Research
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-124-4230204
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Monday, November 6, 2017

Indonesia Car Finance Market is expected to Reach Credit Disbursement of USD 20 billion by 2021: Ken Research

Indonesia Car Finance Market by Type of car financed (New and Used cars), by Loan Tenure (1 Year, 2 Years, 3 Years, 4 Years and 5 Years), by Type of financial institution (Commercial Banks and Non Banking Financial Institutions), by Market share of Major companies (Astra Sedaya Finance, BCA Finance, Oto Multiartha, Mandiri Tunas Finance, Toyota Astra Financial Services, Adira Dinamika Multi Finance, Dipo Star Finance, CIMB Niaga Auto Finance etc)
  • The Indonesia car finance market is dominated by multi finance companies which majorly cater to the middle class population. Multi finance companies today offer convenient facilities with online presence which has reduced documentation, digital installment payment system and simpler procedure.
  • The market has witnessed stringent government regulations in terms of adhering to the minimum capital requirements, revision of down payments requirements and submitting financial report
Indonesia car finance market is in the growing stage. There are around 200 multi finance companies in Indonesia. Indonesia Car Finance Market is driven by increase in sale of passenger cars, inflated ticket size and increased penetration rate. Passenger vehicle segment of the Indonesia’s automotive industry is estimated to grow at a CAGR of 6.8% from 2016 to 2020. The low cost green car segment (LCGC) is expected to experience the fastest growth at CAGR 8.1% from 2016 to 2020. Furthermore, with the proportion of Indonesians living in urban areas expected to reach 71% by 2030, significant infrastructure development is expected in the coming years which will lead to growing working age population and surged the sale of passenger cars.
The number of middle-class and affluent consumers in Indonesia is expected to double to 141 million by 2020. Moreover, with 88.1% of Muslims in Indonesia, Sharia finance has huge potential. Furthermore, OJK targets to triple the market share by 2023 through various strategies, such as the reduction of fees on Sharia-compliant banking products and the development of educational and training programs. Furthermore, banks and other financial institutions are putting their best effort in promoting their consumer finance products and increase the finance penetration in the coming years. The accessibility to finance is expected to grow with an increase in the number of multi finance companies in the market. While more savvy consumers and stricter regulations could curb short-term credit growth, the spread of fintech which use innovative technology in financial services could deliver a new range of customers to multi-financing firms. Fintech can improve consumer financing by public relations campaigns facilitating broader reach as well as increasing credit profiling and providing a different approach to risk management.   
Ken Research in its latest study, Indonesia Car Finance Market by Type (New and Used Passenger and Commercial Cars), by Tenure of Loan, by Banks, Captive and Non Captive Institutions - Outlook to 2021 suggests that Astra Sedaya Finance, BCA Finance, Oto Multiartha, Mandiri Tunas Finance, Toyota Astra Financial Services, Adira Dinamika Multi Finance, Dipo Star Finance will remain the major car finance companies in this space. However, these major players will witness rising competition from small regional players due to low entry barriers.
Some captive finance company only focuses on new car financing, such as Toyota Astra which restricts their profitability compared to that of their peers that engage in new and used car financing. Owing to Indonesia’s lowest bankable population in the world (at 36% of the country’s adult population), these captive units will have a higher potential to expand in future
Indonesia Car Finance Market is projected to register a positive CAGR during the period 2016-2021. Geographical expansion, digital technology, savvy customers and favorable government regulations is expected to drive the Indonesia Car Finance Market in the future.
The report provides information on market size of the Indonesia Car Finance Market, market segmentation on the basis of type of car financed, tenure of loan and type of financial institution.
Key Topics Covered in the Report:
Indonesia Car Finance Market Size
Number New Cars Financed Indonesia
Number of Used Cars Financed Indonesia
Credit Disbursed New Cars Indonesia
Credit Disbursed for Used Cars Indonesia
Tenure of Loan for New, Used Cars Indonesia
Product Features in Car Finance in Indonesia
Value Chain for Car Finance in Indonesia
Trends and Developments in Car Finance Indonesia
Government Regulations in Car Finance Indonesia
Future Outlook for Car Finance Indonesia
Competition Car Finance Indonesia
Top Car Finance Companies in Indonesia
For more information on the research report, refer to below link:
Related Reports by Ken Research
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-124-4230204
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Indonesia Car Finance Market Research Report to 2021: Ken Research

Indonesia Car Finance Market Overview
The Indonesia car finance market is dominated by multi finance companies which majorly cater to the middle class population. There are over ~ finance companies in Indonesia, of which over 100 provide automobile and motorcycle finance services. Consumer finance accounts for ~% of the total value of multi finance industry. The car finance market increased from USD ~ billion in 2011 to USD ~ billion in 2016 at a CAGR of ~%. The major growth drivers include expanding urban population, growth in new and used car sales, lowering lending rates and customizing loan schemes. The market has witnessed stringent government regulations in terms of adhering to the minimum capital requirements, revision of down payments requirements and submitting financial report.
Multi finance companies today offer convenient facilities with online presence which has reduced documentation, digital installment payment system and simpler procedure. This is the reason why consumers prefer to deal with multi finance companies rather than commercial banks.
Captive and non captive companies majorly target low income and lower middle class as it is difficult for them to meet the stringent requirements of commercial banks due to their lower credibility. Various Fintech startups have also come up in the Indonesian financial sector which poses a threat to multi finance companies. These start ups have developed products to augment the digitalization of the banking sector. This includes digital payments, online lending and remote banking facilities which has made consumer lending process uncomplicated further facilitating the car finance market in Indonesia. During the same period, the used car finance market increased at a positive CAGR of ~% from USD ~ million in 2014 to USD ~ million in 2016. This was supported by increase in used car sales from ~ in 2014 to ~ in 2016. The advent of auto classified including Carmudi and OLX made potential buyers more aware of the prevailing prices in the market giving them higher bargaining power while negotiating with used car dealers.
How Have The Different Segments In The Indonesia Car Finance Market Performed?
By New Car and Used Car Finance: New car finance have accounted for the larger share of ~% in the Indonesia car finance market in 2016. Whereas, used car finance contributed ~% in the market revenue. The share of used car finance has increased over the years from ~% in 2013 to ~% in 2016. Since the value of new cars is greater than that of used cars, therefore the credit disbursed in the new car segment is higher. By Tenure of Loan-New Car: It has been observed that, people opting for 3 year loan tenure has accounted for ~% of the new cars financed in 2016 followed by 2 years loan tenure with ~% of the number of new cars financed in 2016 whereas 4 year loan tenure contributed ~%, 1 year loan tenure contributed ~% and 5 Years loan tenure contributed only ~% in the number of car financed in 2016.
By Tenure of Loan-Used Car: People opting for 2 year loan tenure of used cars has have registered a share of ~% in the number of used cars financed in Indonesia in 2016. This was followed by 3 year loan tenure with ~% and 1 year loan tenure with ~% share while only ~% of the used cars have been financed for loan tenure of more than 3 years. Shorter tenure is usually chosen due to easier installments and the lesser price of used cars.
By Financial and Non Financial Institutions (New Car): Commercial banks and financial institutions have accounted for ~% of the credit disbursed for new car in 2016. The non financial institutions which include captive and non-captive finance companies have contributed the remaining ~% of the credit disbursed for new car financing in 2016. The documentation and procedure is more cumbersome while approving a car loan from commercial banks as compared to that approved from non financial institutions.
By Financial and Non Financial Institutions (Used Car): In the used car segment non financial institutions have accounted for the larger share of ~% of the credit disbursed for used cars in Indonesia in 2016. Whereas commercial banks contributed the remaining ~% of the credit disbursed in 2016. Majority customers availing used car loans lie in the low income level group. Used car loans are riskier as the chance of default is higher. Therefore, customers do not prefer going to a commercial banks for such loans due to the stringent regulation.
Company Profile of Major Players
The industry is fragmented and each company caters to its own niche by specializing in several categories such as product financed (4W, 2W, HE) and geographical reach. The car finance market is dominated by multi finance companies as they offer car loan services to middle class people who form the largest proportion of customers availing car finance. Multi-finance companies are owned by banks (both domestic and foreign), brand-holding sole agents (ATPM) of cars and foreign principals of car makers such as Astra and a few which are family/individual-owned. The strong multi-finance companies are those affiliated to banks or car makers and ATPMs. Multi-finance companies generate better returns as compared to banks. The major multi-finance players record higher ROE and ROA as a result of the benefits of higher asset yield which outweigh the negatives of higher cost of funds, operating cost and credit cost.
What Have Been The Trends In The Market?
The market has witness increasing use of technology such as simulation tools, online application and payment methods and others. 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. Indonesian consumers who use credit to purchase a passenger car need to pay a minimum down payment of ~%, from ~% in 2014. Recovery of Indonesian economy, lower financing rates and improved business environment has positively impacted the consumer confidence index of Indonesia. This has resulted in increasing car sales in 2016 out of which ~% are financed by banks and other non financial institutions. Easing inflation rates and increasing purchasing power has further supported the consumer confidence index. With the success of new car models by major players in the Indonesia automotive industry, the number of new cars sold increased by ~% in 2016 from ~ in 2015 to ~ in 2016. The major players which include Toyota, Honda and Daihatsu have accounted for ~% of the passenger car sales market in 2016. The low cost green car is witnessed the fastest growth during 2016 which accounts for ~% of the total manufactured cars. Furthermore, Indonesia’s premium gasoline and diesel fuel prices declined by IDR 500 per liter which is a lagged effect of on sliding international crude oil prices that occurred in Q4-2015. Recent times have witnessed rising internet penetration and the use of online portals such as Carmudi, OLX and Mobil88 for selling used cars which have streamlined this market.
How Is The Market Expected To Perform In The Future?
The Indonesia car finance market is expected to increase from USD ~ billion in 2016 to USD ~ billion in 2021 at a CAGR of ~%. The market will be driven by increase in sale of passenger cars, inflated ticket size and increased penetration rate. Passenger vehicle segment of the Indonesia’s automotive industry is estimated to grow at a CAGR of ~% from 2016 to 2020. The low cost green car segment (LCGC) is expected to experience the fastest growth at CAGR ~% from 2016 to 2020. Furthermore, with the proportion of Indonesians living in urban areas expected to reach ~% by 2030, significant infrastructure development and growing working age population, the sale of passenger cars will grow. Moreover, with ~% of Muslims in Indonesia, Sharia finance has huge potential. While more savvy consumers and stricter regulations could curb short-term credit growth, the spread of fintech, which uses innovative technology in financial services, could deliver a new range of customers to multi-financing firms. Fintech can improve consumer financing by public relations campaigns facilitating broader reach as well as increasing credit profiling and providing a different approach to risk management
Analyst Recommendation
In order to increase access and build customer base, car financing companies need to increase their presence. This can be done by opening branches in different parts of the country and tying up with various dealers and car rental companies. This would enable to enhance the demand for commercial car finance. Customers also benefit from an enhanced digital customer journey as the integrated platform allows for real-time updates, pulling agreement details up instantly and allowing customers to post immediate payments into their accounts. Next, finance companies can tie up with colleges and universities as such places present huge potential in terms of youngsters applying for car loans in the near future. Applying for a car loan involves tedious documentation, complicated formalities, eligibility criteria’s, timely installment payments and others. Financing companies need to take various things into consideration and offer a customized scheme to an individual which suits his lifestyle. The companies need to sell the benefit and not the loan highlighting how taking a car loan makes it easier for them to own a car. In Indonesia, the used car financing penetration is relatively low. With the digitization of sale of used cars, used car financing segment has untapped potential. In the current scenario, used car finance is offered by the private finance companies at a major rate. Since the demand for used cars are increasing every year the existing private finance companies may not be sufficient to fully meet the market demand. If the banks enhance their focus on used car finance, it would raise the amount of credit disbursed augmenting the market growth.
Companies Cited In the Report
List of Companies                     Companies Covered in the Report
BCA Finance
Astra Sedaya Finance
Oto Multiartha                             Major Players
Mandiri Tunas Finance
Toyota Astra Financial Services
Adira Dinamika Multi Finance
Dipo Star Finance
Suzuki Finance Indonesia
CIMB Niaga Auto Finance
Key Topics Covered in the Report:
Used Car Sales in Indonesia
Top Indonesia Car Loans Banks
Indonesia Average Loan Rate
Auto loan Industry in Indonesia
Used Car Financing in Indonesia
Interest Rate Car Loan in Indonesia
Compare Auto Loans in Indonesia
Used Car Sales in the Indonesia
Vehicle Financing in Indonesia
New Car Sales in Indonesia
Indonesia Car Finance Market Size
Indonesia Car Finance Value Chain
Government Regulation, Decision Making Process of Customers and Trends and Developments in Indonesia Car Finance Market
Future Outlook for Indonesia Car Finance Market on the basis of Type of Car Financed
Company Profiling of Major Players Indonesia Car Finance Market
For further reading click on the link below:
Related Reports by Ken Research
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-124-4230204
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