LOS ANGELES, June 16, 2021 (GLOBE NEWSWIRE) — The Global Automotive Finance Market is expected to grow at a CAGR of around 6.6 % from 2020 to 2027 and reach the market value of over US$ 350.5 Bn by 2027.
Europe dominates the automotive finance market; Asia Pacific register fastest growing CAGR of all times for automotive finance market
/cloudfront-us-east-2.images.arcpublishing.com/reuters/YA7Y6LVSVBKSXNL5KOEQPHML3M.jpg)
Europe currently holds the dominating share of the automotive finance market and is expected to maintain this dominance throughout the forecast period. This is because prominent players/OEMs service providers are present in this region. This is one of the most important factors influencing the growth of this regional market. According to European Commission statistics, the automotive industry is critical to Europe’s prosperity. The automotive industry employs 13.8 million Europeans directly and indirectly, accounting for 6.1% of total EU employment. A population of approximately 2.6 million people works in direct manufacturing of motor vehicles, accounting for 8.5% of manufacturing employment in the EU. The EU is one of the world’s largest producers of automobiles, and the automotive industry is the largest private investor in R&D. The European Commission supports global technological harmonisation and R&D funding to strengthen the competitiveness of the EU automotive industry and maintain its global technological leadership.
DOWNLOAD SAMPLE PAGES OF THIS REPORT@ https://www.acumenresearchandconsulting.com/request-sample/2668
Asia Pacific, on the other hand, is expected to have the fastest growing CAGR in the automotive finance market in the coming years. Government initiatives, particularly in India, China, and Japan, create lucrative growth opportunities for the regional market. This is accomplished by lowering the GST on EVs from the current rate of 12% to 5%. The Ministry of Finance has reduced the customs duty on EV components in order to encourage local manufacturing of these components. Furthermore, Asia Pacific’s rapidly growing economies, where car financing is still a relatively new concept. Banks must become accustomed to structuring loan terms, and captives must cope with high entry costs and the need for extensive market education.
Segmental Outlook
The global automotive finance market is segmented based on provider type, finance type, purpose type, and vehicle type. By provider type, the market is segmented as banks, OEMs, and other financial institutions. By finance type, the market is classified into direct and indirect. By purpose type, the market is segregated as loan, leasing, and others. Further, vehicle type is bifurcated into commercial vehicles and passenger vehicles.
VIEW TABLE OF CONTENT OF THIS REPORT@ https://www.acumenresearchandconsulting.com/automotive-finance-market
The loan segment accounts for the largest market share in the global automotive finance market based on purpose type. According to Consumer Finance data, 2.3 million auto loans were originated in April 2019. Consumers applied for $52.8 Bn in new auto loans through April 2019, representing a 3.6% increase y-o-y when compared to August 2019, which was 2.1%.
In terms of finance, the direct segment dominates the automotive finance market, with reasonable revenue of around 55.9% during the forecast period. Consumers are concentrating their efforts on identifying the financing source that best meets their needs. Consumers apply for car loans directly at credit unions, banks, and other lending institutions. Furthermore, because no third-party salesperson or dealer is involved in the lending process, customers have complete control over it.
Competitive Landscape
Key companies profiled in this report involve Ally Financial, The Bank of America Corporation, Capital One Financial Corporation, Daimler Financial Services, Ford Motor Credit Company LLC, General Motors Financial Company, Inc., Hitachi Capital (PLC), and among others.
Browse Upcoming Market Research Reports@ https://www.acumenresearchandconsulting.com/forthcoming-reports
Some of the key observations regarding the automotive finance industry include:
- In May 2021, Diamler Truck Financials announced the launching of “Keep the World Moving” program for its freightliner and Western Star Trucks. The program allows a delay in the first payment by up to 120 days and also an allowance of up to US$5,000 based on the model. This imitative is expected to improve sales that were declined due to COVID-19 pandemic and would also improve the company’s market share.
- In September 2021, Mitsubishi UFJ & Finance and Hitachi Capital, the leading leasing companies in Japan announced merging with Hitachi Capital PLC. The merging aims to expand its operations worldwide, in order to gain highest market share.
INQUIRY BEFORE BUYING@ https://www.acumenresearchandconsulting.com/inquiry-before-buying/2668
BUY THIS PREMIUM RESEARCH REPORT – https://www.acumenresearchandconsulting.com/buy-now/0/2668
Would like to place an order or any question, please feel free to contact at sales@acumenresearchandconsulting.com | +1 407 915 4157
For Latest Update Follow Us:
https://www.facebook.com/acumenresearchandconsulting
https://www.linkedin.com/company/acumen-research-and-consulting
