Tuesday, January 24, 2023

Increasing Digitisation, Positive Outlook for E-Vehicles, Revision of Down payments, Expanding Population and Lower Interest Rates will drive Indonesia Auto Finance Market: Ken Research

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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.

indonesia-auto-finance-market

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

Related Reports by Ken Research:-

Vietnam Auto Finance Market Outlook to 2026F– Driven by Digital Penetration and Dominance of Banks along with a Shift in Consumer Preference form 2W to 4W

Qatar Auto Finance Market Outlook to 2026F– Driven by Increasing Vehicle Prices and Low-Interest Rate In The Country

KSA Auto Finance Market Outlook to 2026F– Driven by Women Entering the Market, Growing Private Entities and Initiatives by the Government

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