Indonesia Car Finance Market is further expected to reach a Market Size of around USD 1366 Billion by the year ending 2024: Ken Research

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The report provides a comprehensive analysis of the Indonesia Car finance market including market evolution, market overview, market genesis, and market size and market segmentation. Extensive focus has been placed in quantifying the credit disbursed and a number of vehicles financed, both new and used. The report covers aspects such as market segmentation (by loan tenure, new and used C and type of Lending Institution), customer perspective in the market and snapshot on online Aggregating ecosystem in Indonesia.

Competitive landscape of major lenders 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 the 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.

• Strong credit demand from businesses and consumers allowed for significant net interest rate margins, helping commercial lenders generate handsome earnings on their loan business.
• Indonesia's financial services authority (OJK) has removed down payment requirements for vehicle loans extended by some multi-finance companies in a bid to boost economic growth.
• It is also expected that the spread of online lending, models will continue in the future. Lead Generation, Online Lending, Loan Aggregation and Technology trends such as Blockchain, Artificial Intelligence, and Fin-tech are expected to impact and disrupt the traditional indirect lending model in the market.

Harnessing Fintech to achieve financial inclusion: FinTech has an ability to solve Indonesia’s financial inclusion challenges, which include being an archipelago country with limited infrastructure and a lack of credit information on corporates and individuals. Due to advances in technology and the emergence of Fin-tech startups, which are leveraging their resources to improve the lending experience for the consumer, the market has become more efficient and competitive. Developments in financial technology have allowed for various improvements such as quick retrieval of documents, quicker transactions and customized services based on the customer’s preferences. Car vehicle financing has become seamless, fast and transparent leading to improved operations. However, a key challenge is the lack of credit scoring data. Fintech companies are seeking to overcome this through credit-assessment built on alternative data, including airtime usage.

Changing Nature of ownership: Consumers in Indonesia are increasingly moving forward to accommodate newer models of mobility and prefer partial ownership of vehicles instead of full ownership. Leasing and Car Rental were foreign concepts in Indonesia a couple of years ago, however, they are now some of the growing operating models in the automobile industry in Indonesia. This perception shift is forcing lenders to adopt new models and incorporate newer products in their portfolio offerings to consumers.

Analysts at Ken Research in their latest publication “Indonesia Car Finance Market Outlook to 2024: Growing Prominence of Captive Finance Companies Backed by Surging Car Sales to Drive Market Growth”, believe that the Indonesia Car Finance market demand is likely to follow a stable trend in the near future due to a forthcoming Increase in used Cars sales and a shift towards newer models of mobility such as car-sharing and leasing, which will, in turn, help the economy grow as well. Some positive factors expected to impact the market is the influx of digitization-based lending models (Introduction of Fintech Products), the spread of customized loan products and a further rise in the penetration rate of C finance. The market is anticipated to register a positive CAGR of ~5.3% in terms of Credit Disbursed during the forecasted period 2019P-2024.

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: -

NBFCs share Indonesia Credit Disbursed in USD Million

Minimum Down Payment for Car Finance Indonesia

Number of Used and New Cars Sold in Indonesia

Lending Interest Rate in Indonesia

Digitization of Car Finance Indonesia

Indonesia Online Car Lending Ecosystem

Indonesia Car Finance Credit Disbursed

Indonesia Car Loan Outstanding

Indonesia Major Captive Finance Institutions

Indonesia Car Finance Interest Rate

Non-Bank Institutes Indonesia

For More Information On The Research Report, Refer To Below Link: -

Indonesia Car Finance Market Outlook

Related Reports by Ken Research: -

Vietnam Auto Finance Market Outlook To 2023 – By Loan Tenure, By Type of Institution (Commercial Banks And Non- Banking Financial Institutions) And By Type Of Vehicle (Passenger And Commercial)

Thailand Auto Finance Market Outlook To 2023 – By Loan Tenure, By Commercial Banks, Non- Banking Financial Institutions, Auto OEMs Captives; By New and Used Passenger and Commercial Vehicles

Philippines Auto Finance Market Outlook To 2023 – By Banks and Nbfcs Including Captive Units (Auto Loan Portfolio And Motor Cycle Loan Portfolio), By New and Used Motor Vehicles, By Motor Vehicle Financed (Passenger and Commercial Vehicles), By Loan Time Period.

Contact Us: -
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@Kenresearch.Com
+91-9015378249

Indonesia Car Finance Market Forecast to 2024: Ken Research

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How Indonesia Car Finance Market Is Positioned?

Indonesia Car finance market has been identified as in its late growth stage. During the last 5 years, the Car finance market has risen as demand and supply for automotive grew at a decent rate year on year. Lenders institutions in this period have evolved to provide a range of innovative products and services to further improve attraction and penetration of the market. Car finance gained dominance as people started accepting loans as a way of buying their cars majorly because of interest rates were following a declining trend; innovative finance products by Fintech institutions and ease of terms for a loan were prevalent. The majority of the expansion in auto finance sales in these years came from financial institutes such as banks and Multi Finance Institutions. Online entities such as Lead Generation Companies and Aggregators have also started gaining prominence.

The Car finance market has increased to approximately USD ~ billion in 2019P from USD ~ billion in 2013 registering a CAGR of ~% during the same period. The credit disbursed in the Indonesia Car Finance market has increased from USD ~ billion in 2013 to USD ~ billion in 2019P. The number of vehicles financed increased from ~ in 2013 to ~ in 2019P. There have been various factors responsible for the growth. One of the major factors has been the growing level of sales of used vehicles in Indonesia along with a vast array of financing options being offered by lenders. Moreover, convenience in lending is being improved as online lending ecosystems contribute to the rising total addressable market in vehicle finance and lenders offer highly customized products catered to the borrower’s needs. The Issuance of digitally Advanced Products, being offered by various Fintech Institutions, also acts as a Catalyst to the Growth of Industry.

Indonesia Car Finance Market Segmentation

By New and Used Vehicle: In Indonesia, the Car loan is disbursed for both new and used vehicles. Credit Disbursed for New Car finance was observed to dominate the market during 2019P. New Vehicle Finance enjoys a majority share in the market owing to the advantages that come handy with the new vehicles that include higher resale value and better financing schemes. Used vehicles capture a comparatively lower share in the market. However, in terms of Units Financed, they have a bigger share.

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 4 Year Tenure of Loan is dominant in the Market for new Cars, while the 3 Year tenure comes in second place. Used car Finance customers, generally tend to go for the 1-year loan as the value of financing required is not really high and that helps them to repay the loan quickly.

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. The second position in the market was captured by NBFCs and Multifinance Companies, who operate in the market, the nonfinancial institutions' Captive finance companies have contributed the remaining part of the credit disbursed for new car financing in 2019P.

Competitive Landscape in the Indonesia Car Finance Market

Competition in the Indonesia finance market is extremely fragmented. The Major lending institution types in the market are Banks, Captives, and Multi Finance Companies. Banks hold a majority share in the lending space for New Cars, and NBFCs tries to majorly provide services to the Used Cars segment.  Some of the leading banking institutions include Bank of Central Asia (BCA Finance), Mandiri Bank (Mandiri Tunas Finance), Danamon Bank (Adira Dinamika Finance), CIMB Niaga. Stiff competition was observed in the case of Captives including Toyota Astra Finance (Toyota and Daihatsu), Dipo Star Finance (Mitsubishi), Bussan Car Finance (Yamaha), and Suzuki Car Finance (Suzuki). Some NBFC institutions such as Adira Dinamika have been seen to register double-digit growth, representing the trend of the rapid growth of credit unions. Parameters on the basis of which companies compete in the market include interest rate, digitalization, and ease of transaction, distribution network, service portfolio, repayment methods available and others.

Indonesia Car Finance Market Future Outlook and Projections

Over the forecast period, Indonesia The 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:-

Dipo Star Finance Market Revenue Indonesia

NBFCs share Indonesia Credit Disbursed in USD Million

Number of Used and New Cars Sold in Indonesia

Pasar Keuangan Mobil Indonesia

Industri Keuangan Mobil Indonesia

Pasar Keuangan Mobil Indonesia

Industri Keuangan Mobil Indonesia

Laporan Penelitian Pasar Keuangan Mobil Indonesia

Laporan Penelitian Industri Pembiayaan Mobil Indonesia

Suzuki Indonesia Auto Finance Market Revenue

BFI Indonesia Car Finance Market Report

Radana Bhaskara Auto Finance Market Revenue

Indonesia Car Finance Market

For More Information On The Research Report, Refer To Below Link:-

Indonesia Car Finance Market Outlook

Related Reports by Ken Research:-

Vietnam Auto Finance Market Outlook To 2023 - By Loan Tenure, By Type Of Institution (Commercial Banks And Non- Banking Financial Institutions) And By Type Of Vehicle (Passenger And Commercial)

Thailand Auto Finance Market Outlook To 2023 - By Loan Tenure, By Commercial Banks, Non- Banking Financial Institutions, Auto OEMs Captives; By New And Used Passenger And Commercial Vehicles

Philippines Auto Finance Market Outlook To 2023 - By Banks And Nbfcs Including Captive Units (Auto Loan Portfolio And Motor Cycle Loan Portfolio), By New And Used Motor Vehicles, By Motor Vehicle Financed (Passenger And Commercial Vehicles), By Loan Time Period.

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@Kenresearch.Com
+91-9015378249

Indonesia Car Finance Market Outlook to 2024: Ken Research

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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.

Indonesia Car Finance Market Overview and Size

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 that 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 a 4-year loan tenure has accounted for the 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. The 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.

Trends and Issues

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.

Competitive Landscape of Indonesia Car Finance Market

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.

Indonesia Car Finance Market Future Outlook and Projections

Over the forecast period, the 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

Car mobile Associations

Car mobile 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:-

Executive Summary

Research Methodology

Indonesia Car Finance Market Overview and Genesis

Value Chain Analysis of Indonesia Car Finance Market, 2019P

Indonesia Finance Market Value Chain Analysis

Indonesia Car Finance Market Size, 2013-2019P

Indonesia Car Finance Market Segmentation

Major Trends and Development in Indonesia Car Finance Market

Regulatory Framework in the Indonesia Car Finance Market

Product Feature on Indonesia Car Finance Market

For More Information On The Research Report, Refer To Below Link:-

Indonesia Car Finance Market Outlook

Related Reports by Ken Research:-

Vietnam Auto Finance Market Outlook To 2023 - By Loan Tenure, By Type Of Institution (Commercial Banks And Non- Banking Financial Institutions) And By Type Of Vehicle (Passenger And Commercial)

Thailand Auto Finance Market Outlook To 2023 - By Loan Tenure, By Commercial Banks, Non- Banking Financial Institutions, Auto OEMs Captives; By New And Used Passenger And Commercial Vehicles

Philippines Auto Finance Market Outlook To 2023 - By Banks And Nbfcs Including Captive Units (Auto Loan Portfolio And Motor Cycle Loan Portfolio), By New And Used Motor Vehicles, By Motor Vehicle Financed (Passenger And Commercial Vehicles), By Loan Time Period.

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@Kenresearch.Com
+91-9015378249