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 fallen and seen a downturn 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.
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 Auto Finance Industry in Saudi Arabia: Often a large amount of paperwork is 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 “Saudi Arabia Automotive Finance Market Outlook to 2026 F Driven by Women’s Market Entry, Growth of Private Entities and Government Initiatives” by Ken Research observed the potential of the Saudi Arabia car finance market outlook. 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
SEEN
By type of passenger motor vehicle
4W
2W
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
Year of reference : 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:-
Saudi Arabia Auto Finance Market
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Philippines Automotive Finance Market Outlook to 2024 – Rising Predominance of Captive Finance and Rise in Used Car Sales Supporting Auto Loan Disbursement
Thailand Automotive Finance Market Outlook to 2024: Growing Importance of Captive Finance Companies and Bank Loan Portfolio Acting as a Catalyst for Market Growth
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