Growth in the Indonesia Car Finance Market is driven by the growing Household and Urban population of Indonesia, rise in the number of Financing Options, high penetration rate of Finance in new and used Car in the country and Growth of Fintech Prospects in the Market: Ken Research

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Benign inflation, low borrowing costs, and a thriving economy helped Indonesia’s Finance sector achieve remarkable growth following the 2008/2009 global financial crisis. Now with the stature of a primary lending institution for Car finance in Indonesia shifting from Banks to non-bank lenders such as Captives and NBFCs, this growth is projected to Continue”

High level of openness to digital banking propositions: Indonesian consumers are very open to digital banking. Over the past three years, the monthly usage of digital banking channels in Indonesia has grown twice as fast as other Emerging Asian markets. Furthermore, 55 percent of non-digital customers said they were likely to use digital banking in the next six months; this is the second-highest figure for any country in Emerging Asia, after Myanmar. This is encouraging more people to take loans as repayment options are easy and vast.

Simplification of Lending Process: With Indirect Lending gaining precedence over Direct Lending, the loan process doesn’t involve communication between the Credit Institution and the Consumer for discussing loan terms and payments. With flexible payment options being introduced, the spotlight has shifted from affordability to convenience. Borrowers are now looking for flexibility in loan terms as well as refinancing options if the need arises. Lenders have been introducing customized products, to cater to the needs of different consumer profiles and Online Lending Models have simplified and improved the ease with which borrowers can compare and avail financing for their Car.Indonesia Car Finance Industry

Investment by Japanese Automakers will act as a catalyst to Growth: Several Japanese automakers have conveyed plans for further investment in Indonesia, which should help the government implement its roadmap to build a globally competitive automotive industry. The investment will be used to expand the company’s business in Indonesia during the period of 2019-2023. This will further boost up the sales of various passenger Car Companies in Indonesia.

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 vehicle 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, are 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 vehicle finance. The market is anticipated to register a positive CAGR of ~5.3% in terms of Credit Disbursed during the forecasted period 2019P-2023.

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:-

Indonesia Adira Dinamika car Financing Market Report

Pasar Keuangan Mobil Indonesia

Industri Keuangan Mobil Indonesia

Pasar Keuangan Mobil Indonesia

Industri Keuangan Mobil Indonesia

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

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