How Is Singapore Auto Finance Market Positioned?
The Singapore Auto Finance industry is at a growth stage and is increasingly being supported by modern digital infrastructure and huge loan portfolio. The average cost of car loan in the industry is ~2.4% and~2.7% for a new or used car respectively. Singapore Auto Finance market has grown in the in past few years owing to the favorable policies by Government for expanding green cars sector, increasing average disposable income of people, growing investments by large players for customer satisfaction. Moreover, Emergence of digital finance aggregators, improving infrastructure, rising technological innovations along with increase in use of internet and rising mobile penetration have also led to this expansion in the market.
Market: The Auto Finance
market basis credit disbursed as well as loan outstanding had seen relatively average
growth in the last few years, recording a CAGR of ~% and ~% during 2015-2020
respectively. The CAGR had grown comparatively at a lower rate owing to less number of cars financed in 2020 due to COVID – 19.Other
contributing factors for relatively lower CAGR were high cost of loan, time
consuming application process, low vehicle sales growth and more. As of 2020, on an average, 85-90% of the vehicles sold in Singapore were
financed.
Singapore Auto Finance Market Segmentation
By Type of Cars Financed
Singapore Auto Finance market is dominated by Used
Vehicles in terms of absolute number of vehicles sold as well as financed. However,
relatively finance penetration rate is higher for new vehicles than used
vehicles in the country owing to higher prices of the former.
By Credit Disbursed
Passenger Vehicles occupy the lion’s share of the total
credit disbursed in the Auto Finance Market of Singapore with New Vehicles and
Used Vehicles financing almost equally dominating the Passenger Vehicle
segment.
By Loan Outstanding
Passenger Vehicles occupy the lion’s share of the loan
outstanding in the Auto Finance Market of Singapore with New Vehicles and Used
Vehicles financing almost equally dominating the Passenger Vehicle segment.
By Type of
Institution
Majority of the Auto Loan Outstanding in Singapore is
through Banks owing to the huge loan portfolio offered by them at comparatively
lower interest rates.
Competitive Scenario in
Singapore Auto Finance Market
The Auto Finance market of Singapore consists of a large
number of Domestic as well as international players. However, only top few
players occupy lion’s share of the market (basis credit disbursed) making the
Industry highly concentrated. Major Baking Institutions involved in Auto Loans
Services in Singapore include DBS Bank, Standard Chartered, OCBC, MayBank, and
UOB among others. Also, Major Non-Banking Financial Institutions in the country
include Hong Leong Finance, Singapura Finance, Sing Investment and Finance and
more. The parameters at which the companies are competing are Interest Rate
Offered, Clientele, service portfolio, Technology and more.
The Singapore Auto Finance industry is expected to increase at a CAGR of 8.9% basis Auto credit disbursed and 1.3% basis Auto Loan Outstanding during 2020 to 2025. The credit disbursed is expected to rise in Singapore at higher than average CAGR owing to higher number of cars financed in the future. The government of Singapore is working towards expansion of Green Car Sales in the country which is expected to increase the demand of ‘Green Car Loans’ in the future years. New Business Models such as Shared Ownership Financing may also emerge in the country in the coming years. Lastly, Industry is expected to move towards a digital growth with the expansion of Artificial Intelligence, Machine Learning, Big Data and more to further simplify loan application process.
Key
Segments Covered:-
By Type of Cars Financed- (Units)
New Vehicles
Used Vehicles
By Credit Disbursed (By SGD Billion)
Commercial
Vehicles
Passenger
Vehicles
New
Vehicles
Used
Vehicles
Motorcycles
By Loan Outstanding (By SGD Billion)
Commercial
Vehicles
Passenger
Vehicles
New
Vehicles
Used
Vehicles
Motorcycles
By Type of Institution (Loan Outstanding) (SGD
Billion)
Banks
& Subsidiaries
Finance
Companies
Others
Companies
Covered
(Banks)
DBS Bank
UOB
MayBank
OCBC
Standard Chartered Bank
(Finance
Companies)
Hong Leong Finance
Singapura Finance
Sing Investment & Finance
Singapore Auto Finance Property Holdings
Credit Master
Carro
SG Cash N Cars
Speed Credit
SF Holdings
Accord Motoring
Vincar
Goldbell Financial Services
Capitall
Money Max Leasing
Key
Target Audience
Existing Auto
Finance Companies
Banks
OEM Dealerships
Captive Finance
Companies
Credit Unions
Private Finance
Companies
New Market Entrants
Government
Organizations
Investors
Auto mobile
Associations
Auto mobile OEMs
Time
Period Captured in the Report:-
Historical Period: 2015-2020
Forecast Period:
2020-2025
Key Topics Covered in the Report:-
Comprehensive
analysis of Singapore Auto Finance Market and its segments.
Listed
major players and their positioning in the market.
Identified
major industry developments in last few years and assessed the future growth of
the industry.
For More
Information on the research report, refer to below link:-
Related Reports:-
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