An increase in car sales, expansion of digitalization along with the entrance of fintech companies in automotive loans are the leading factors expected to drive the Saudi Arabia Automotive Loan Market during the projected period. According to TechSci Research report, “Saudi Arabia Automotive Loan Market–Industry Size, Share, Trends, Competition, Opportunity, and Forecast, 2018-2028F” The Saudi Arabia automotive loan market is expected to grow at a fast rate during the forecast period owing to the emergence of banks, NBFCs, fin-tech firms, and online personal loan aggregator platforms. Higher shipping costs in 2021 had an impact on auto sales as well as the cost of transporting cargo has increased significantly. Consumers paid higher prices, which increased the number of loans extended out. Thus, the demand for the automotive loan is being driven by the various above-mentioned factors in Saudi Arabia during the forecast period.
The Important Factors of the Saudi Arabia Automotive Loan Market
An automotive loan is a secured loan against the vehicles, which means the vehicle serves as collateral for the loan. Lenders have the right to take a person’s vehicle if they don’t receive payments on time. The loan is paid back in fixed installments during the duration of the loan. Until customers make the last payment, the lender is still the owner of the vehicle. Generally, the lender lends the money, and the borrower is required to return the loan in equated monthly installments (EMIs) over a defined tenure at a specific interest rate. Additionally, automotive loan is primarily provided through banks, NBFCs (non-banking financial services, OEM (original equipment manufacturer), and others (fintech companies) over a specified tenure and interest rate.
Additionally, rising collaborations of financial institutions with sellers are driving the automotive loan market in Saudi Arabia. Dealerships, multi-brand stores, and online marketplaces are a few examples of outlets that can be effective business growth platforms. Customers generally look for end-to-end consulting services in the same location due to convenience The automotive loan institution’s reach will be increased due to partnership recommendations. Moreover, the customer experience can be further improved if prospective buyers are given pre- and post-loan assistance, such as online auto shopping, online financing applications, and lender interaction prior to in-person meetings.
Browse over XX market data Figures spread through XX pages and an in-depth TOC on “Saudi Arabia Automotive Loan Market“
The Saudi Standards, Metrology, and Quality Organization (SASO) are essential to Saudi Arabia’s adoption of electronic vehicles. The KSA government’s Vision 2030 has extensive plans for the economy that aim to benefit the automotive loan industry as with the rising demand for electric vehicles, the demand for automotive loan due to the higher prices of electric vehicles will also increase.
Moreover, due to the rise in the number of women who received driving licenses over the previous four years, bringing their total to 200 thousand licenses, the car market in the Kingdom of Saudi Arabia saw an increase in car sales by 5% during the last year. As a result of women being allowed to drive, the Kingdom of Saudi Arabia has seen a rise in the percentage of automotive loans offered for buying automobiles in the first half of 2021, a 15% increase over the same time in 2020. Also, the reason for the high percentage of sales is due to the diversity of financing sources, in addition to the large number of advantages offered by car sales companies, especially after-sales services, adding that car sales in Saudi Arabia market are high, which is expected to drive the Saudi Arabia automotive loan market during the forecast period.
The Saudi Arabia automotive loan market is segmented based on vehicle type, provider type, percentage of amount sanctioned, tenure, and region.
On the basis of vehicle type, the market is further divided into two-wheeler, passenger cars, and commercial vehicles. Among them, passenger cars have a significant share followed by commercial vehicle during the forecast period as even the low-income category use cars to commute, which is driving automotive loan market during the forecast period.
Based on the provider type, the market is segmented into banks, NBFCs (non-banking financial services, OEM (original equipment manufacturer), and others (fintech companies) among which banks have a significant share due to the trust factor and fixed interest rate and tenure.
Furthermore, on the basis of the percentage of the amount sanctioned, the market is segmented into less than 25%, 25-50%, 51-75%, and more than 75%. By tenure, the market is segmented into less than 3 years, 3-5 years, and more than 5 years. On the basis of region, the market is divided among North Saudi Arabia, South Saudi Arabia, and Central Saudi Arabia.
Key market players in the Saudi Arabia automotive loan market include:
- Al Rajhi Banking & Investment Corp.
- Riyad Bank
- National Commercial Ban
- Abdul Latif Jameel United Finance Company
- The Saudi Investment Bank
- Arab National Bank
- Saudi Finance Company
- AL-AMTHALFinance Company
- Alinma Bank
- Emirates NBD PJSC
Download Free Sample Report
Customers can also request 10% free customization on this report.
“The demand for loans for commercial vehicles is rising as businesses use commercial vehicles on daily basis. However, purchasing a car requires a significant big contribution, and those with the lowest salaries must find this cost out of their budget. In such circumstances, it can be beneficial to consider taking an automotive loan to buy a vehicle which is driving the automotive loan during the forecast period,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.
“Saudi Arabia Automotive Loan Market Segmented By Vehicle Type [Two-Wheeler, Passenger Car, Commercial Vehicle], By Provider Type [Banks, NBFCs (Non-Banking Financial Services, OEM (Original Equipment Manufacturer), Others (Fintech Companies)], By Percentage of Amount Sanctioned [Less than 25%, 25-50%, 51-75%, More than 75%], By Tenure [ Less than 3 Years, 3-5 Years, More than 5 Years], By Region, By Company, Forecast & Opportunities, 2018-2028F”, has evaluated the future growth potential of the automotive loan market in Saudi Arabia and provides statistics and information on market structure, size, share, and future growth. The report is intended to provide cutting-edge market intelligence and help decision-makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities present in the Saudi Arabia automotive loan market.
Contact
Mr. Ken Mathews
708 Third Avenue,
Manhattan, NY,
New York – 10017
Tel: +1-646-360-1656
Email:[email protected]
Website: https://www.techsciresearch.com