Showing posts with label Indonesia Car Rental Industry. Show all posts
Showing posts with label Indonesia Car Rental Industry. Show all posts

Friday, August 4, 2023

Indonesia’s Auto Finance Industry is expected to reach US$ 54 Bn by 2026 : Ken Research

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Indonesia’s auto finance Industry is steered through adoption of modified vehicle ownership attributes, monetary policies, surging automotive demand, and an assured future for e-vehicles. The market is bounteous with players like Mitsubishi Lease and Finance, Suzuki Finance Indonesia, Toyota Astra Finance, Daihatsu, Honda, and many more.

Story Outline

  • Constant economic growth of Indonesia leading to higher disposable income and consumer spending.
  • Due to high inflation rate of 4% and average annual income of 9870 USD, people of Indonesia are considering buying Auto financed Used cars to satisfy their need for a personal vehicle.
  • The current Internet Penetration rate of Indonesia with 234 million current active users is helping car dealers in getting potential buyers on board.
  • EV market is ready to explode and be the future of the Automobile industry, with government support, having more than 22% of world’s nickel deposits and Indonesia’s auto Finance Industry which will make E- Vehicles an easy option for customers to consider while buying Automobile

The Indonesia’s auto finance Industry, which is growing at an estimated  CAGR of 5-7% every year, is being driven by expanding digital advancements and an increase in finance aggregators. Indonesia's economy, which had a GDP of USD 1.19 Tn as of FY21 and a population of 277.43 million, grew at a CAGR of 4.3% from FY12 to FY22.

1. Consistent economic growth leading to high consumer spending benefitting Indonesia's Auto Finance Industry.

Indonesia Auto Finance Market

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The statistics here show the year-to-year GDP growth of Indonesia. As compared to 2021, the GDP of Indonesia grew by 5.31% in 2022. Indonesia continuous economic growth has led to upsurge in consumer spending and higher disposable incomes. As a result, Indonesia’s Automotive Finance Industry is showing promising growth.

As the population of Indonesia is constantly growing with approx. 277.43 Mn current population, which is leading to increased demand for personal vehicle. Indonesia’s Auto Finance Industry is providing an affordable and hassle-free solution to this rise in demand for personal vehicles.

Indonesia is the 15th largest country by total area and has the 4th largest population in the world. The Industrial sector is the largest contributor to Indonesia's GDP, between 2022-2023 the industrial sector of Indonesia contributed around 45% to its GDP.

As a result of this rapid population growth, the Indonesian automotive finance industry is expanding consistently at an estimated rate of 5-7% every year.

2. Used car market attracting more audience, providing affordable an option to consumers.

Indonesia Auto Finance Market

Click here: To know more about Indonesia's vehicle market

The stats show the total number of vehicles sold in Indonesia from 2013-2022. Total vehicles sold in 2021 were 887,206. Out of these total vehicles sold in 2021 it is noted that 51% of these were new ones and 49% used vehicles were sold.

The inflation rate in Indonesia for 2022 was 4.3% and as of June it was calculated 4%. Also, the average annual income of Indonesia is around 9870 USD as of May 2023; these factors are the reason that people of Indonesia are considering to buy an used vehicle through auto financing to satisfy their need for a personal vehicle.

Nowadays, Automotive Financing is not only confined to only new vehicles; it also encompasses the financing of pre-owned cars, which attracts a different segment of buyers. People along with combining the benefits of auto finance options find it affordable to buy used vehicles to satisfy their need of a personal vehicle.

3. High internet penetration rate helping car dealers to find potential buyers.

Indonesia Auto Finance Market

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The number of internet users in Indonesia was projected to grow steadily by around 37 million users (16 percent) between 2023 and 2028. The current number of active users are 234 million and in 2028 total users are estimated to be 270 million. It is worth noting that the number of Internet users has grown steadily in recent years.

An estimated 36% of car dealers report that they focus exclusively on the Internet and online advertising for their vehicles. In addition, social media is also a tool that many individuals and car dealers are exploring. About 9% of dealers use Facebook and Instagram to promote their car inventory and connect with potential buyers.

The emergence of online car classifieds portals like Carmudi, Mobil88 and OLX has simplified the used car industry in the country. The market is more transparent and buyers have a wide range of brands and models to choose from in the comfort of their own home.

4. Is it all? No. Indonesia's is ready to explode in coming years, with government support and nickel abundance.

Indonesia Auto Finance Market

Click to read full article: Indonesia EV Market

Indonesia's EV market is valued at approx. $533.19 million in 2022. The size of the electric vehicle market is planned to grow at a considerate level, with the help of Auto Financing option People are finding it easy to buy vehicles in their budget with easy auto financing options.

With more than 22% of the world's nickel deposits Indonesia becomes the largest nickel producing country in the world by producing 8,00,000 tons of nickel in 2019. The largest nickel production sites are located in provinces of Central Sulawesi, Southeast Sulawesi, North Maluku, Kalimantian and Papua

Indonesia has created an ideal investment environment for electric car manufacturers. Indonesia's electric vehicle industry has been included in the government's latest priority investment list. Advantages such as share ownership and many tax incentives attract investors from all over the world.

Increase in demand of EV will help Indonesia Financial Industry to grow at a major level as environmental awareness is increasing day by day among people and buying an EV vehicle for an average salaried employee will be difficult which will directly make people switch to Auto Finance option.

Conclusion

Consistent economic growth, high internet penetration rate, growth of used vehicle consumer, and EV Market; is helping the Indonesia Auto Finance Industry to bloom and the industry is helping consumers to satisfy their personal vehicle need with affordable options. With a growing estimated CAGR of 5-7% every year; Indonesia auto finance market still needs to take care of constant rise in GDP and growth of EV market in coming years.

For more insights on market intelligence, refer to the link below: –

Indonesia Auto Finance Market

Thursday, January 12, 2023

Indonesia Car Rental Market Analysis, Trends, Revenue Outlook to 2027: Ken Research

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Indonesia Car Rental Market Ecosystem

Indonesia’s Car Rental Market is in the growing stage, being driven by new car rental companies along with increasing tourism in the country and more internet penetration in rural areas of the country. Major players in the car rental market of Indonesia include The Hertz Corporation, Blue Bird Group, TRAC.

Key Market Findings: -

  • Growth rate of total car rental is going to increase over the period as car leasing becomes easier, and market penetration rates increase in the country.
  • With rising internet penetration and ownership of smartphones, it is expected that customers will make bookings online as it is more convenient for bookings with additional discounts and saving time.
  • The tourism sectors in cities like Jakarta and Bali are expanding, which is expected to have a beneficial impact on the Indonesian car rental market growth.

Indonesia Car Rental market

To Know More about this report, download a Free Sample Report

Introducing New Services and Improving Entertainment Options: The Indonesia Car Rental Market will expand in the coming years as a result of the increased focus of car rental companies on corporate clients, an increase in foreign travellers, and so on. The current participants in the Indonesian car rental market are in the process of introducing new services and improving entertainment options, such as adding an LED screen for clients to avoid exhausting them in their city's traffic jams and GPS tracking of the journey. As more businesses offer car rental services each year, the type and caliber of these services advance in the market to compete.

Investment in the car rental service market: The government's initiative to attract tourism to the country is expected to contribute to overall market growth. The Indonesian Tourism and Creative Economy Ministry, for example, is investing in its national tourism sector with the goal of developing sustainable and community-based tourism. The investments are expected to boost the development of five super-priority tourism destinations, eight special economic zones, and twelve sustainable tourism projects, which will increase demand for car rental services in the coming years, resulting in tremendous growth in the market during the forecast period.

Increase in Electric vehicle manufacture: The share of EVs is expected to increase many folds as Indonesia plans to shift to electric mobility and plans to begin subsidizing electric vehicle purchases next year as the country aspires to have 2.5 million EV users by 2025 to boost demand and reduce air pollution. Other key drivers that are expected to boost this market in the short to medium term include growing mobility needs, an increase in the number of SMEs, an overall positive attitude among corporates, an increase in middle-management customers, high vehicle acquisition costs, favorable regulations, and the growth of ridesharing and car sharing.

Analysts at Ken Research in their latest publication Indonesia Car Rental Market Outlook to 2027F - Segmented by Market Structure (Organized Market and Unorganized Market), By Type of Vehicles (Small Cars/Hatchbacks, Sedans, SUV and Others, By Ice/EV (Ice (Internal Combustion Engine) And Electric Vehicles, By Cities (Jakarta, Surabaya, Bali, Yogyakarta), By Mode of Booking (Online and Offline), By Client (Business and Leisure and By Pick-Up (On-Airport and Off-Airport)observed the potential of the Car Rental Market in Indonesia. The expansion of the tourism industry with rising foreign tourists in Indonesia and On- Demand for transportation, the rising internet population in the country, and increasing demand from customers along with government incentives on electric vehicles are expected to contribute to the market growth over the forecast period. The Indonesian Car Rental Market is expected to grow at ~% CAGR over the forecasted period 2022-2027F.

Key Segments Covered: -

Indonesia Car Rental Market:

By Market Structure:

  • Organized market
  • Unorganized market

By Type of Vehicles:

  • Small Cars/ Hatchbacks
  • Sedans
  • SUVs
  • Others

To more about industry trends, Request a free Expert call

By ICE/EV:

  • ICE (Internal Combustion Engine
  • Electric Vehicles

By Cities:

  • Jakarta
  • Surabaya
  • Bali
  • Yogyakarta
  • Others

By Mode of Booking:

  • Online
  • Offline

By Client:

  • Business
  • Leisure

By Pick-up:

  • Off-Airport
  • On-Airport

Key Target Audience

  • Car Rental Service Providers
  • Car Rental Companies aiming to establish in Indonesia
  • Indonesia’s automotive industries
  • Government Bodies & Regulating Authorities
  • Venture Capitalist targeting the car rental market
  • Automotive industry association
  • Car Manufacturers
  • Existing Car Rental Companies
  • OEM Dealerships
  • New Market Entrants
  • Investors
  • Car Rental Associations

Time Period Captured in the Report:

  • Historical Year: 2017-2022
  • Base Year: 2022
  • Forecast Period: 2022– 2027F

Companies Covered:

Car Rental Company

The Hertz Corporation

Blue Bird Group

TRAC

Mitra Pinasthika Mustika Rent

Adi Sarana Armada Tbk

Avis

Europcar Indonesia

Globe Rent a Car

Visit this Link Request for a custom report

Key Topics Covered in the Report

  • Overview, Operating Models and Company Profile of the Automotive Industry in the Indonesia, 2022
  • Overview and Genesis of Car Rental Market in Indonesia, 2022
  • Ecosystem of Indonesia Car Rental Market
  • Business Cycle, Timeline, and Value Chain Analysis of Car Rental Market in Indonesia
  • Indonesia Car Rental Market Sizing, 2017- 2022P
  • Market Segmentations of Car Rental Market in Indonesia (by Market Structure, by Type of Vehicle, by ICE/ EV, by Mode of Booking, by Pick-up, by Client, by cities), 2022
  • Indonesia E-Commerce Warehousing Overview, 2021
  • SWOT Analysis of Indonesia Car Rental Market
  • Growth Drivers of Indonesia Car Rental Market
  • Government regulations of Indonesia Car Rental Market
  • Government Incentives and Policies on Electrification in Indonesia
  • Trends and Developments of Indonesia Car Rental Market
  • Challenges of Indonesia Car Rental Market
  • Competitive Analysis of Car Rental Market in Indonesia
  • End User Analysis of Car Rental Market in Indonesia
  • Future Outlook and Projections of Car Rental Market in Indonesia, 2022-2027F
  • Market Opportunities and Analyst Recommendations

For more insights on the market intelligence, refer to the link below: -

Future Outlook of Indonesia Car Rental Market

Related Reports by Ken Research: -

Netherlands Car Rental Market Outlook to 2027F

Saudi Arabia Car Rental and Leasing Market Outlook to 2023

South Africa Car Rental and Leasing Market Projections to 2023

Wednesday, December 28, 2022

The Rising Number of Foreign Tourists in the country and various Government Initiatives are the major driver of the Indonesian car rental market: Ken Research

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Driven by the various initiatives by the government for increasing the travel and tourism industry and increasing internet penetration, the car rental market in Indonesia has ample growth potential in the coming years.

Significant growth in travel and tourism: The Indonesian car rental market is currently expanding. The pandemic has caused a precipitous drop, which has had a negative impact, particularly on fleet size, as most players' fleets have shrunk many folds from their previous size. Significant growth in the country's travel and tourism industry is one of the key factors driving the market growth. Furthermore, the growing number of foreign tourists in the country drives the Indonesian car rental market. Furthermore, the rise in consumer disposable income, combined with the influence of a high standard of living and increased spending on luxury travel, is propelling the Indonesian car rental industry.

The growing trend of on-demand transportation services: In recent years, the impact of technological advancements have revolutionized the industry. The increasing use of smartphone-based online rental car booking apps is significantly contributing to market growth. With the help of online booking mobile applications for the convenience of customers, companies in the market have been able to capture a large customer base. Improved customer and corporate information management, as well as simple internet booking applications, are two prominent ways to help car rental service operators provide better services. Furthermore, factors such as the growing trend of on-demand transportation services and the low rate of car ownership among millennials have fueled the growth of the Indonesian car rental market.

Indonesia Car Rental Industry Share

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Shift to Experience Economy: There has been a paradigm shift away from products and toward experiences in recent years. Consumer durables and clothing spending have slowed, while experiential spending on recreation, travel and eating has skyrocketed. As a result, the demand for commodities outnumbers the demand for travel. Now, the growth has coincided with an increase in both domestic and international outbound tourists. The aforementioned factors are key drivers for the Indonesian leisure activity market, which will further boost the growth of the Indonesian car rental service market. Furthermore, because Jakarta is a popular convention destination, the leisure activity segment has significant market potential throughout the forecast period.

Covid-19 Impact on Car Rentals: The pandemic had a negative impact on market growth due to a halt in activities as a result of the lockdowns and travel and transportation restrictions imposed by the Indonesian government to combat the spread of the coronavirus. Furthermore, as the tourism industry, both international and domestic, suffered a significant blow as a result of the pandemic, demand for car rentals decreased, as car rental services are widely used by tourists. Furthermore, WFH policies implemented by companies throughout Indonesia further reduced corporate demand for car rental services.

Analysts at Ken Research in their latest publication “Indonesia Car Rental Market Outlook to 2027F - Segmented by Market Structure (Organized Market and Unorganized Market), By Type of Vehicles (Small Cars/Hatchbacks, Sedans, SUV and Others, By Ice/EV (Ice (Internal Combustion Engine) And Electric Vehicles, By Cities (Jakarta, Surabaya, Bali, Yogyakarta), By Mode of Booking (Online and Offline), By Client (Business and Leisure and By Pick-Up (On-Airport and Off-Airport)”  observed the potential of the Car Rental Market in Indonesia. The expansion of the tourism industry with rising foreign tourists in Indonesia and On- Demand for transportation, the rising internet population in the country, and increasing demand from customers along with government incentives on electric vehicles are expected to contribute to the market growth over the forecast period. The Indonesian Car Rental Market is expected to grow at ~% CAGR over the forecasted period 2022-2027F.

Key Segments Covered: -

Indonesia Car Rental Market:

By Market Structure:

  • Organized market
  • Unorganized market

By Type of Vehicles:

  • Small Cars/ Hatchbacks
  • Sedans
  • SUVs
  • Others

To more about industry trends, Request a free Expert call

By ICE/EV:

  • ICE (Internal Combustion Engine
  • Electric Vehicles

By Cities:

  • Jakarta
  • Surabaya
  • Bali
  • Yogyakarta
  • Others

By Mode of Booking:

  • Online
  • Offline

By Client:

  • Business
  • Leisure

By Pick-up:

  • Off-Airport
  • On-Airport

Key Target Audience

  • Car Rental Service Providers
  • Car Rental Companies aiming to establish in Indonesia
  • Indonesia’s automotive industries
  • Government Bodies & Regulating Authorities
  • Venture Capitalist targeting the car rental market
  • Automotive industry association
  • Car Manufacturers
  • Existing Car Rental Companies
  • OEM Dealerships
  • New Market Entrants
  • Investors
  • Car Rental Associations

Time Period Captured in the Report:

  • Historical Year: 2017-2022
  • Base Year: 2022
  • Forecast Period: 2022– 2027F

 Companies Covered:

Car Rental Company

The Hertz Corporation

Blue Bird Group

TRAC

Mitra Pinasthika Mustika Rent

Adi Sarana Armada Tbk

Avis

Europcar Indonesia

Globe Rent a Car

Visit this Link Request for a custom report

Key Topics Covered in the Report

  • Overview, Operating Models and Company Profile of the Automotive Industry in the Indonesia, 2022
  • Overview and Genesis of Car Rental Market in Indonesia, 2022
  • Ecosystem of Indonesia Car Rental Market
  • Business Cycle, Timeline, and Value Chain Analysis of Car Rental Market in Indonesia
  • Indonesia Car Rental Market Sizing, 2017- 2022P
  • Market Segmentations of Car Rental Market in Indonesia (by Market Structure, by Type of Vehicle, by ICE/ EV, by Mode of Booking, by Pick-up, by Client, by cities), 2022
  • Indonesia E-Commerce Warehousing Overview, 2021
  • SWOT Analysis of Indonesia Car Rental Market
  • Growth Drivers of Indonesia Car Rental Market
  • Government regulations of Indonesia Car Rental Market
  • Government Incentives and Policies on Electrification in Indonesia
  • Trends and Developments of Indonesia Car Rental Market
  • Challenges of Indonesia Car Rental Market
  • Competitive Analysis of Car Rental Market in Indonesia
  • End User Analysis of Car Rental Market in Indonesia
  • Future Outlook and Projections of Car Rental Market in Indonesia, 2022-2027F
  • Market Opportunities and Analyst Recommendations

For more insights on the market intelligence, refer to the link below: -

Future Outlook of Indonesia Car Rental Market

Related Reports by Ken Research: -

Netherlands Car Rental Market Outlook to 2027F

Saudi Arabia Car Rental and Leasing Market Outlook to 2023

South Africa Car Rental and Leasing Market Projections to 2023