According to SPER Market Research, the Indonesia Auto Finance Market is expected to be positive during the forecast period owing to the continued demand for automobiles among the population. Also, several fintech start-ups have emerged in the country’s financial sector, posing a threat to traditional financial firms and banks. These start-ups have developed products to advance the digitization of the banking sector. These include digital payments, online lending, online aggregation and remote banking capabilities, making the financing process simple and easy for customers and further promoting the country’s auto finance market. Banks and captives are expected to maintain their leading positions in the market due to their extensive networks and product range. Furthermore, car sales are likely to decline in the Indonesian market, which could increase the number of loans issued in the future.
The used car financing market has decreased slightly due to the COVID-19 outbreak and subsequent lockdowns. However, the decline was less pronounced than that of new car sales due to buyer hesitation and low cash balances available for new car purchases. But now that life has returned to normal, the used car finance market in Indonesia is expected to gain momentum again in the coming years. The pandemic has made car ownership an unavoidable aspect of an individual’s life as traveling on public transport can be dangerous. People who preferred public transportation in the pre-Covid era are now potential customers in the used car market.
Indonesia Auto Finance Market Overview:
As it becomes increasingly digital and companies are able to provide a distant and immersive buying experience, the used automobile industry in Indonesia is predicted to develop significantly over the long run. The expansion of the used automobile market in the area is further aided by rising value-added service offerings and several financing companies that offer loans for old cars. Higher interest rates, however, would discourage some prospective buyers and impede the expansion of the market. The rise of numerous non-bank financial organisations that offer flexible instalment alternatives at lower interest rates than banks is another significant element fostering the market’s expansion.
Impact of COVID-19 on the Indonesia Auto Finance Market
The COVID-19 situation is causing supply chains to significantly slow down, market uncertainty, business confidence to erode, and growing customer segment concern. Governments in a number of areas have already announced total lockdowns and short-term industry closures, which have a negative impact on overall production and sales. Countries all throughout the world have put rigorous limitations in place, ranging from a few days to several months. Many firms have had to shut down as a result of the epidemic while they wait for the market to recover. The Indonesian auto sector has been severely hit by the virus’ quick spread, and the passenger vehicle market has also been affected by the drop in demand for automobiles.
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Indonesia Auto Finance Market Key Segments Covered:
The SPER Market Research report seeks to give market dynamics, demand, and supply forecasts for the years up to 2032. This report contains statistics on product type segment growth estimates and forecasts.
By Category of Lenders:
- Captive Financing Companies
By Type of Vehicles:
- Two Wheelers
- Three Wheelers
- Four Wheelers
By Type of Ownership:
- Used Cars
- New Cars
- North America
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends, and strategies for this market. It traces the market’s historic and forecast market growth by geography.
Indonesia Auto Finance Market Key Players:
The Indonesia Auto Finance Market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; BMW AGDFSK Motors, Honda Motor Co., Ltd., Isuzu Motors Limited, Mazda, Mitsubishi Motors Corporation, Nissan Motor, Isuzu Motors Limited, Mazda, Mitsubishi Motors Corporation, Nissan Motor, Suzuki Motor Corporation, Toyota Motor Corporation, Wuling Motor (SGMW Motors).
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