90% of credit disbursed in the car finance market in Saudi Arabia is contributed

Saudi Arabia is already the largest market for new and used cars as well as auto parts in the Gulf region and the Middle East, providing many growth opportunities for the auto finance industry in the country.

KSA Automotive Market Overview: Saudi Arabia is the largest automotive market in the GCC, which includes Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates. Saudi Arabia is already the largest market for new and used cars as well as auto parts in the Gulf region and the Middle East. KSA imports $21 million worth of vehicles and parts each year. Three major global OEMs producing heavy-duty vehicles operate in the Western region, namely Mercedes, Volvo and MAN.

Global Semiconductor Shortage and Impact of COVID: The disbursed credit market has been falling and falling due to factors such as the Covid outbreak and the shortage of semiconductor chips. Covid impacted production in the market, automakers could not predict vehicle demand in the future and therefore miscalculated production requirements. The lack of vehicle supply has been made even more pronounced due to a global shortage of semiconductor chips. The shortage of semiconductor chips is expected to cost the global auto industry $110 billion in revenue in 2021.

For more information on the research report, refer to the link below:-

https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/ksa-auto-finance-market-outlook-to-2026/596022-93.html

Impact of price increase: Fuel prices are increasing in the Saudi Arabia region and car prices are also increasing. Saudi Arabia is a spendthrift economy that’s why people are heavily indebted which could give way to 5 year loans. In a competitive market such as Auto Finance, interest rates are generally similar between different companies. Thus, car buyers are constantly looking for greater added value when selecting a supplier. Two-wheelers constitute sports bikes like BMW, Harley Davidson, Suzuki, etc.

Issues and Challenges in the Saudi Arabia Auto Finance Industry: A large amount of paperwork is often required for a salesperson and customer to complete an average car loan application in Saudi Arabia. The Government of Saudi Arabia also introduced the Expat Levy in 2017 which required expatriates to pay SAR 100 per month for each of their dependents to renew their visa, and this fee has steadily increased. increase. Due to the expatriate tax, many expatriates leave the country or send their family members home, which affects the overall vehicle and auto finance market.

Ken Research analysts in their latest publication “KSA Auto Finance Market Outlook to 2026F-Driven by Women Entering the Market, Growing Private Entities and Initiatives by the Government” from Ken Research observed the potential of the Saudi auto finance market outlook Arabia. Growing awareness of auto finance among the population, along with increasing lending facilities, customer tastes and preferences, implementation of favorable government rules and regulations are expected to aid in the growth of the market in during the forecast period. The KSA Auto Finance Market is expected to grow at a CAGR of 6.6% over the forecast period 2021-2026F.

Key Segments Covered:-

Saudi Arabia Auto Finance

By type of lender

Banks

NBFC

OEM/Captives

By type of motor vehicle

Passenger

Commercial

By type of utility vehicle

HCV

CVD

VUL

By type of passenger motor vehicle

By type of vehicle financed

New

Used

By loan term for new vehicles

1 year

2 years

3 years and over

By loan term for old vehicles

1 year

2 years

3 years and over

Key Target Audience:-

Automotive Industries of Saudi Arabia

Government agencies and regulatory authorities

Financial industry

car company

Car dealership and users

Time period entered in the report: –

Historical year: 2018-2021

Base year: 2021

Forecast Period: 2022-2026F

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Companies covered: –

Al Rajhi Bank

Bank of Riyadh

National Bank of Commerce

Abdul Latif Jameel

Arab National Bank

The Saudi Investment Bank

United Arab Emirates

Saudi Financial Corporation

Finance company Al Amthal

Alinma Bank

Main topics covered in the report:-

KSA Automotive Market Overview

Landscape of Total Cars in Saudi Arabia Automotive Market, 2021-2024F

KSA Auto Finance Market Overview

KSA Auto Finance Market Ecosystem

KSA Auto Finance Market Evolution and Business Cycle

Automotive finance market size in Saudi Arabia, 2018-2021

KSA Automotive Finance Market Segmentation, 2021 (By Type Of Vehicle Financed, By Occupancy Length Of New And Old Vehicles, By Type Of Commercial Vehicle, Type Of Lending Bank And By Type Of Lenders)

KSA Auto Finance Services Industry Analysis

Decision-making parameter for auto loan provider selection

Trends and Developments in the Automotive Finance Industry in Saudi Arabia

SWOT Analysis of Automotive Finance Industry in KSA

Issues and Challenges in the Auto Finance Industry in Saudi Arabia

Government Policies Affecting the Automotive Finance Industry in Saudi Arabia

Impact of Covid-19 on the car finance industry in Saudi Arabia

Competition framework for KSA Auto Finance

Future Outlook and Projections of the KSA Automotive Finance Market, 2021-2026F

Market Opportunities and Analyst Recommendations

Analyst Recommendations

Research Methodology

For more information on the research report, refer to the link below:-

https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/ksa-auto-finance-market-outlook-to-2026/596022-93.html

Related reports: –

https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/singapore-auto-finance-market-outlook-2025/508467-93.html

https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/thailand-auto-finance-market-outlook/299310-93.html

Ken Research Pvt. Ltd.,
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Ken Research is a research-based management consulting firm. We provide strategic advice to help clients on critical business insights: strategy, marketing, organization, operations and technology transformation, advanced analytics, corporate finance, mergers and acquisitions, and sustainability across all industries and geographies. We provide business intelligence services and operational advice in over 300 verticals highlighting disruptive technologies, emerging business models with analysis of precedents and success case studies. Some of the best consulting firms and market leaders seek our intelligence to identify new revenue streams, customer/vendor paradigm and pain points and competitive due diligence.

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