KSA Car Finance Market is in the growing stage, being driven by banks and NBC’s along with introduction of Fin-Tech companies and online personal loan aggregator platforms. Major entities in the market are Banks and Captives that are 70-80 years old offering variety of financing services.
- Growth rate of total cars financed is going to increase over the period as financing becomes easier, market penetration rates increase.
- The Vision 2030 project in KSA has massive plans for the economy in terms of infrastructure and investment which will improve employment figures and increase incomes.
- Entry of women drivers in the market has led to an increase in the total cars sold and hence the credit disbursed in car finance sector. This trend is expected to continue to 2026.
Increase in Private Entities: The Government stake in the Saudi Arabia Car finance market is decreasing, hence the percentage share of government to private might shift to private. Government stake in SNB has gone down from 44.2% in 2016 to 37.2% in 2022. Finance companies are partnering with Banks so they can offer loan more than 33% of customer’s salary. For example- Riyad Bank works with Al Amthal Financing. It is not a sister company, but they have collaborated together. Both share the profits from customers.
New Players in the Market and Partnership with Finance Companies: New players entering the KSA Car 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. Also, Finance companies are partnering with Banks so they can offer loan more than 33% of customer’s salary. For example- Riyad Bank works with Al Amthal Financing. It is not a sister company, but they have collaborated together. Both share the profits from customers.
Get in front of Prospects through AI: When customers shop for a car, they need information about two things the car itself and how to finance it. A tighter online integration of information gathering for car buying and car financing can help move a consumer to the next stage of the purchasing process. The solution is an interactive online interface embedded with AI. The online experience must extend seamlessly into the dealership – for instance, by giving the customer access to terms and pricing details on their mobile app rather than having to rely on the dealer.
Analysts at Ken Research in their latest publication “KSA Car Finance Market Outlook to 2026F- Driven by Women Entering the Market, Increasing Employment Opportunities in the Kingdom” by Ken Research observed that KSA Car Finance Market is in the growing phase. Enhancing Service Offerings, collaborations with partners, expand pipeline with predictive analysis and getting in front of prospects through AI are some of the factors that will contributed to the KSA Car Finance market growth over the period of 2021-2026F. It is expected that KSA Car Finance Market will grow at a CAGR of 11.7% for the above forecasted period.
Key Segments Covered in the report:-
KSA Car Finance Market
By Type of Vehicle Financing
- New car financing
- Used car financing
By Type of Car Financed
- Hatchbacks
- Sedans
- Sports Utility Vehicle
- Multi-Purpose Vehicle
By Price
- High (500,000+)
- Medium (200k-500k)
- Low (below 200K)
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By Type of Institution
- Banks
- NBFC's
- Captives
By Tenure of Loans
- <2 years
- 3-4 years
- 4-5 years
By Major Cities
- Riyadh
- Jeddah
- Dammam
- Others
By Booking Mode
- Online
- Offline
Key Target Audience
- Banks and its Subsidiaries
- NBFCs
- Captive Finance Companies
- Government and Institutions
- Automobile Companies
- Car Dealers
- Government and Institutions
- Existing Car Finance Companies
- OEM Dealerships
- New Market Entrants
- Investors
- Auto mobile Associations
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Time Period Captured in the Report:-
- Historical Period: 2017-2021
- Base Period: 2021
- Forecast Period: 2022-2026F
Companies Covered:-
Banks
- Al Rajhi Bank
- Riyad Bank
- Al Jazeera Bank
- Alinma Bank
- Arab National Bank
NBFC’s
- Al Yusr Leasing and Financing
- Al Amthal Financing Company
- National Finance House
- Tajeer Finance
- National Finance Company
- Murabaha Marina Finance Company
OEM’s
- Abdul Latif Jameel United Finance Co. (Toyota Distributor)
- ALJABR FINANCE (KIA Distributor)
- Walan finance company (hyundai)
- Geely Finance (Geely Distributor)
Key Topics Covered in the Report:-
- KSA Automotive Market Overview
- Ecosystem, Business Cycle and Evolution of KSA Car Finance Market
- KSA Car Finance Value Chain Analysis
- Islamic Banking and Car Finance in KSA
- KSA Car Finance Market by Credit Disbursed, 2017-2021
- KSA Car Finance Market by Outstanding loans, 2017-2021
- KSA Car Finance Market Segmentation, 2021
- SWOT Analysis of KSA Car Finance Industry
- Infrastructure Development Overview of KSA
- Trends and Developments in KSA Car Finance Industry
- Operational Strategies for KSA Car Finance Services Market
- Issues and Challenges in KSA Car Finance Industry
- Government Policies and Initiatives for Automotive Industry
- Growth Drivers of KSA Car Finance Market
- KSA Car Finance Market Competition Overview
- Cross Comparison of Major Players in KSA Car Finance Market
- Strengths and Weakness of Major Players in KSA Car finance market
- Future Outlook and Market Projections, 2026F
- Case Study on Al Rajhi Bank
- Growth strategies for KSA Car Finance Market
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