Asia Pacific Used Car Financing Market
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Asia Pacific Used Car Financing Market, By Body Style Type (Hatchbacks, Sedans, Sports Utility Vehicles (SUVs), Multipurpose Utility Vehicles (MUVs)); By Financier (OEMs, Banks, Non-Banking Financing Companies (NBFCs)); By Country (China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Malaysia, Singapore, Vietnam, Rest of APAC), Trend Analysis, Competitive Landscape & Forecast, 2019–2030
- Published Date: May 2024
- Report ID: BWC24396
- Available Format: PDF
- Page: 328
Report Overview
The expanding pre-owned car market, rising car ownership rates, and an increasing number of fintech and NBFCs addressing the market are expected to drive the Asia Pacific Used Car Financing Market during the forecast period between 2024 and 2030.
Asia Pacific Used Car Financing Market – Industry Trends & Forecast Report, 2030
The Asia Pacific Used Car Financing Market size was estimated at USD 37.21 billion in 2023. During the forecast period between 2024 and 2030, the Asia Pacific Used Car Financing Market size is projected to grow at a CAGR of 8.77% reaching a value of USD 76.89 billion by 2030. Prominent drivers of the market are the increasing demand for affordable cars and the ease of obtaining financing. Across the Asia Pacific region, the used car financing sector has experienced notable growth, with a presence observed across South Asian countries. Various players, including small NBFCs, OEMs, and private banks, offer diverse options for obtaining financing for used cars. The market for used cars in these countries is characterized by fragmentation, with numerous OEMs, auction houses, and pre-owned dealers aiming to expand their inventory to provide customers with a wide array of financing choices. A significant portion of consumers opting for car purchases with financial assistance tend to rely on available financing services, primarily due to the accessibility of used car financing options, which typically range between 13–15% in cost. This presents a substantial opportunity for both manufacturers and financial institutions. Notably, in countries like India, the used car market is approximately 1.3 times larger than the new car market, indicating promising prospects for the market.
Used Car Financing – Overview
Used car financing refers to the process of obtaining financial assistance or loans to purchase pre-owned vehicles. It involves securing funds from various sources such as banks, credit unions, financial institutions, or dealerships to facilitate the purchase of a used car. Used car financing options typically involve terms and conditions regarding interest rates, repayment schedules, and eligibility criteria based on factors such as credit history, income, and the value of the vehicle being purchased. These financing arrangements enable individuals to affordably acquire a used vehicle while spreading the cost over time through installment payments.
Asia Pacific Used Car Financing Market
Growth Drivers
Rising Car Ownership Rates
The Asia Pacific region has witnessed a significant surge in car ownership rates, reflecting a profound transformation in transportation dynamics. Statistical data reveals a steady increase in motor vehicle ownership per capita, particularly two-and three-wheelers, alongside passenger cars. Notably, low and lower-middle-income economies have experienced remarkable growth in vehicle ownership, propelled by rising per capita incomes and infrastructural advancements. Furthermore, the shifting commuting patterns, with private vehicle ownership surpassing public transport registrations, signify a notable transition in transportation preferences. This trend underscores the evolving landscape of mobility in the region, necessitating strategic planning and investment to address associated challenges effectively. For instance, China's strategy to boost domestic consumption includes subsidies aimed at upgrading vehicles, contributing to a surge in car ownership rates. With 435 million motor vehicles in China by 2023, including 336 million cars and trucks, the nation witnesses a steady rise in vehicle ownership. The burgeoning number of vehicles, coupled with government incentives, fuels the growth of the used car market. In 2022, 18.41 million motor vehicles were exchanged in this market, signaling its increasing significance in the automotive landscape. This trend reflects the changing dynamics of car ownership and consumer behavior in China.
Challenges
Volatility in Used Car Prices
The fluctuating prices of used cars pose a significant challenge to the growth of Asia Pacific Used Car Financing Market. Volatile car prices can create uncertainty for both buyers and lenders, impacting their willingness to engage in financing transactions. Factors such as changes in market demand, vehicle condition, and economic conditions can contribute to this price instability. Consequently, potential buyers may hesitate to commit to purchasing a used car, while lenders may be more cautious in offering financing options. This restraint on the market limits its growth potential and requires innovative strategies to mitigate the impact of price volatility on used car financing transactions.
Impact of Escalating Geopolitical Tensions on Asia Pacific Used Car Financing Market
Intensifying geopolitical tensions can have a multifaceted impact on the Asia Pacific Used Car Financing Market. Japan's decision to restrict most used-car sales to Russia, prompted by geopolitical factors and reinforced by sanctions, has abruptly halted a trade valued at nearly USD 2 billion annually. This move has disrupted established channels for exporting popular brands like Toyota, Honda, and Nissan, significantly altering market dynamics. Consequently, brokers and dealers are scrambling to redirect vehicles to alternative markets in regions like New Zealand, Southeast Asia, and Africa. While these shifts present challenges, they also bring opportunities, such as lower prices benefiting both consumers and businesses within the sector. As the landscape evolves, stakeholders are closely monitoring the unfolding implications of these geopolitical maneuvers on the used car financing market in the Asia Pacific region.
Asia Pacific Used Car Financing Market
Segmental Coverage
Asia Pacific Used Car Financing Market – By Body Style Type
Based on body style type, Asia Pacific Used Car Financing Market is divided into Hatchbacks, Sedans, Sports Utility Vehicles (SUVs), and Multipurpose Utility Vehicles (MUVs) segments. The hatchbacks segment holds the highest share in the Asia Pacific Used Car Financing Market by body style type. Their affordability has ensured sustained demand, even during the pandemic. Hatchbacks offer comparable performance and comfort to sedans at a lower tax rate, further propelling their popularity. This trend mirrors the new car market, attracting major international automakers to invest in compact car models. As digital car buying expands and value-added services increase, the used car market, particularly hatchbacks, is expected to experience further growth, fueled by the growing availability of financing options.
Asia Pacific Used Car Financing Market – By Financier
Based on financier, the Asia Pacific Used Car Financing Market is divided into OEMs, Banks, and Non-Banking Financing Companies (NBFCs) segments. The banks segment holds the highest share in the Asia Pacific Used Car Financing Market by financier segments. They currently control around 40% of the used commercial vehicle segment and are strategically expanding into the pre-owned car market to further increase their profit margins. Leveraging their access to low-cost funds and extensive branch networks, leading banks like Axis Bank, HDFC Bank, ICICI Bank, and YES Bank are partnering with online platforms like Rupyy to streamline used car loan offerings. Despite challenges in accurately valuing pre-owned vehicles, banks are capitalizing on the surging demand by providing competitive interest rates and tailored loan options. However, their ability to capture an even larger market share depends on building robust dealer networks and implementing effective strategies for acquiring new business. Meanwhile, the OEM segment is expected to witness the fastest growth rate during the forecast period. Traditionally fixated on new vehicle sales, OEMs are now recalibrating their strategies to tap into the lucrative used cars market. This strategic pivot reflects a broader industry acknowledgment of the substantial revenue potential inherent in pre-owned vehicles. By diversifying their offerings to include used cars, OEMs not only enhance brand visibility but also foster brand loyalty among a wider consumer base. To capitalize on this paradigm shift, OEMs are leveraging advanced software solutions to streamline their acquisition processes for used car inventory. This proactive approach ensures that OEMs remain at the forefront of market dynamics, poised to capitalize on emerging opportunities and sustain robust growth in the forecast period
Asia Pacific Used Car Financing Market – By Country
The in-depth research report on the Asia Pacific Used Car Financing Market covers the market in the region’s major countries including China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Malaysia, Singapore, Vietnam, and Rest of APAC. India holds the highest share in the Asia Pacific Used Car Financing Market and is expected to maintain its dominance during the forecast period. It is primarily due to the surge in used car sales, driven by their cost-effectiveness compared to new vehicles. Accessible financing options have bolstered this growth, fostering a steady rise in demand for used car financing. The increasing adoption of digital technologies is a significant catalyst for this market. Digitization streamlines data management processes, reducing resource allocation and document storage challenges. As auto finance embraces digitization, opportunities abound for comprehensive digital solutions, including e-signatures and digital loan documentation, positioning players to gain a competitive edge in the market.
Competitive Landscape
Major players operating in Asia Pacific Used Car Financing Market include The Bank of China, HDFC Bank Ltd, Cholamandalam Investment and Finance Company Limited, Sundaram Finance Ltd, Bajaj Finserv, Mahindra Finance, Sumitomo Mitsui Banking Corporation Group, Korea Development Bank, Chandgan Auto Finance Co. Ltd, Ford Motor Credit Company, and BYD Auto Finance Company Limited. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
Recent Developments
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In March 2024 - Hyundai Motor Company ventured into the domestic certified used car market in South Korea.
Scope of the Report
Attributes |
Details |
Years Considered |
Historical Data – 2019–2030 |
Base Year – 2023 |
|
Estimated Year – 2024 |
|
Forecast Period – 2024–2030 |
|
Facts Covered |
Revenue in USD Billion |
Market Coverage |
China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Malaysia, Singapore, Vietnam, Rest of APAC |
Product/ Service Segmentation |
Body Style Type, Financier, Country |
Key Players |
The Bank of China, HDFC Bank Ltd, Cholamandalam Investment and Finance Company Limited, Sundaram Finance Ltd, Bajaj Finserv, Mahindra Finance, Sumitomo Mitsui Banking Corporation Group, Korea Development Bank, Chandgan Auto Finance Co. Ltd, Ford Motor Credit Company, BYD Auto Finance Company Limited |
By Body Style Type
-
Hatchbacks
-
Sedans
-
Sports Utility Vehicles (SUVs)
-
Multipurpose Utility Vehicles (MUVs)
By Financier
-
OEMs
-
Banks
-
Non-Banking Financing Companies (NBFCs)
By Country
-
China
-
India
-
Japan
-
South Korea
-
Australia & New Zealand
-
Indonesia
-
Malaysia
-
Singapore
-
Vietnam
-
Rest of APAC
- Research Framework
- Research Objective
- Solution Overview
- Market Segmentation
- Executive Summary
- Asia Pacific Used Car Financing Market Insights
- Industry Value Chain Analysis
- DROC Analysis
- Growth Drivers
- Growing Used Car Market
- Rising Car Ownership Rates
- Fintech and NBFCs
- Restraints
- Economic Fluctuations
- Used Car Price Volatility
- Opportunities
- EV Financing
- Untapped Markets
- increasing Digitalization
- Challenges
- Creditworthiness Assessment
- Fraudulent Practices
- Growth Drivers
- Technological Advancements/Recent Developments
- Regulatory Framework
- Porter’s Five Forces Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of New Entrants
- Threat of Substitutes
- Intensity of Rivalry
- Asia Pacific Used Car Financing Market, Pricing Analysis
- Asia Pacific Used Car Financing Market: Marketing Strategies
- Asia Pacific Used Car Financing Market Overview
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Body Style Type
- Hatchbacks
- Sedans
- Sports Utility Vehicles (SUVs)
- Multipurpose Utility Vehicles (MUVs)
- By Financier
- OEMs
- Banks
- Non-Banking Financing Companies (NBFCs)
- By Country
- China
- India
- Japan
- South Korea
- Australia & New Zealand
- Indonesia
- Malaysia
- Singapore
- Vietnam
- Rest of APAC
- By Body Style Type
- Market Size & Forecast, 2019–2030
- China Used Car Financing Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Body Style Type
- By Financier
- Market Size & Forecast, 2019–2030
- India Used Car Financing Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Body Style Type
- By Financier
- Market Size & Forecast, 2019–2030
- Japan Used Car Financing Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Body Style Type
- By Financier
- Market Size & Forecast, 2019–2030
- South Korea Used Car Financing Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Body Style Type
- By Financier
- Market Size & Forecast, 2019–2030
- Australia & New Zealand Used Car Financing Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Body Style Type
- By Financier
- Market Size & Forecast, 2019–2030
- Indonesia Used Car Financing Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Body Style Type
- By Financier
- Market Size & Forecast, 2019–2030
- Malaysia Used Car Financing Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Body Style Type
- By Financier
- Market Size & Forecast, 2019–2030
- Singapore Used Car Financing Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Body Style Type
- By Financier
- Market Size & Forecast, 2019–2030
- Vietnam Used Car Financing Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Body Style Type
- By Financier
- Market Size & Forecast, 2019–2030
- Rest of APAC Used Car Financing Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Body Style Type
- By Financier
- Market Size & Forecast, 2019–2030
- Competitive Landscape
- List of Key Players and Their Offerings
- Asia Pacific Used Car Financing Company Market Share Analysis, 2023
- Competitive Benchmarking, By Operating Parameters
- Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
- Impact of Escalating Geopolitical Tensions on Asia Pacific Used Car Financing Market
- Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
- The Bank of China
- HDFC Bank Ltd
- Cholamandalam Investment and Finance Company Limited
- Sundaram Finance Ltd
- Bajaj Finserv
- Mahindra Finance
- Sumitomo Mitsui Banking Corporation Group
- Korea Development Bank
- Chandgan Auto Finance Co. Ltd
- Ford Motor Credit Company
- BYD Auto Finance Company Limited
- Other Prominent Players
- Key Strategic Recommendations
- Research Methodology
- Qualitative Research
- Primary & Secondary Research
- Quantitative Research
- Market Breakdown & Data Triangulation
- Secondary Research
- Primary Research
- Breakdown of Primary Research Respondents, By Country
- Assumptions & Limitations
- Qualitative Research
*Financial information of non-listed companies can be provided as per availability.
**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable
List of Figures
Figure 1 Asia Pacific Used Car Financing Segmentation
Figure 2 Asia Pacific Used Car Financing Market Value Chain Analysis
Figure 3 Company Market Share Analysis, 2023
Figure 4 Asia Pacific Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Figure 5 Asia Pacific Used Car Financing Market Share, By Body Style Type, By Value (USD Billion), 2019–2030
Figure 6 Asia Pacific Used Car Financing Market Share, By Financier, By Value (USD Billion), 2019–2030
Figure 8 Asia Pacific Used Car Financing Market Share, By Country, By Value (USD Billion), 2019–2030
Figure 9 China Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Figure 10 China Used Car Financing Market Share, By Body Style Type, By Value (USD Billion), 2019–2030
Figure 11 China Used Car Financing Market Share, By Financier, By Value (USD Billion), 2019–2030
Figure 13 India Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Figure 14 India Used Car Financing Market Share, By Body Style Type, By Value (USD Billion), 2019–2030
Figure 15 India Used Car Financing Market Share, By Financier, By Value (USD Billion), 2019–2030
Figure 17 Japan Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Figure 18 Japan Used Car Financing Market Share, By Body Style Type, By Value (USD Billion), 2019–2030
Figure 19 Japan Used Car Financing Market Share, By Financier, By Value (USD Billion), 2019–2030
Figure 21 South Korea Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Figure 22 South Korea Used Car Financing Market Share, By Body Style Type, By Value (USD Billion), 2019–2030
Figure 23 South Korea Used Car Financing Market Share, By Financier, By Value (USD Billion), 2019–2030
Figure 25 Australia & New Zealand Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Figure 26 Australia & New Zealand Used Car Financing Market Share, By Body Style Type, By Value (USD Billion), 2019–2030
Figure 27 Australia & New Zealand Used Car Financing Market Share, By Financier, By Value (USD Billion), 2019–2030
Figure 29 Indonesia Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Figure 30 Indonesia Used Car Financing Market Share, By Body Style Type, By Value (USD Billion), 2019–2030
Figure 31 Indonesia Used Car Financing Market Share, By Financier, By Value (USD Billion), 2019–2030
Figure 33 Malaysia Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Figure 34 Malaysia Used Car Financing Market Share, By Body Style Type, By Value (USD Billion), 2019–2030
Figure 35 Malaysia Used Car Financing Market Share, By Financier, By Value (USD Billion), 2019–2030
Figure 37 Singapore Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Figure 38 Singapore Used Car Financing Market Share, By Body Style Type, By Value (USD Billion), 2019–2030
Figure 39 Singapore Used Car Financing Market Share, By Financier, By Value (USD Billion), 2019–2030
Figure 41 Vietnam Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Figure 42 Vietnam Used Car Financing Market Share, By Body Style Type, By Value (USD Billion), 2019–2030
Figure 43 Vietnam Used Car Financing Market Share, By Financier, By Value (USD Billion), 2019–2030
Figure 41 Vietnam Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Figure 42 Rest of APAC Used Car Financing Market Share, By Body Style Type, By Value (USD Billion), 2019–2030
Figure 43 Rest of APAC Used Car Financing Market Share, By Financier, By Value (USD Billion), 2019–2030
List of Tables
Table 1 Asia Pacific Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Table 2 Asia Pacific Used Car Financing Market Size, By Body Style Type, By Value (USD Billion), 2019–2030
Table 3 Asia Pacific Used Car Financing Market Size, By Financier, By Value (USD Billion), 2019–2030
Table 5 Asia Pacific Used Car Financing Market Size, By Country, By Value (USD Billion), 2019–2030
Table 6 China Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Table 7 China Used Car Financing Market Size, By Body Style Type, By Value (USD Billion), 2019–2030
Table 8 China Used Car Financing Market Size, By Financier, By Value (USD Billion), 2019–2030
Table 10 India Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Table 11 India Used Car Financing Market Size, By Body Style Type, By Value (USD Billion), 2019–2030
Table 12 India Used Car Financing Market Size, By Financier, By Value (USD Billion), 2019–2030
Table 14 Japan Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Table 15 Japan Used Car Financing Market Size, By Body Style Type, By Value (USD Billion), 2019–2030
Table 16 Japan Used Car Financing Market Size, By Financier, By Value (USD Billion), 2019–2030
Table 18 South Korea Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Table 19 South Korea Used Car Financing Market Size, By Body Style Type, By Value (USD Billion), 2019–2030
Table 20 South Korea Used Car Financing Market Size, By Financier, By Value (USD Billion), 2019–2030
Table 22 Australia & New Zealand Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Table 23 Australia & New Zealand Used Car Financing Market Size, By Body Style Type, By Value (USD Billion), 2019–2030
Table 24 Australia & New Zealand Used Car Financing Market Size, By Financier, By Value (USD Billion), 2019–2030
Table 26 Indonesia Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Table 27 Indonesia Used Car Financing Market Size, By Body Style Type, By Value (USD Billion), 2019–2030
Table 28 Indonesia Used Car Financing Market Size, By Financier, By Value (USD Billion), 2019–2030
Table 30 Malaysia Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Table 31 Malaysia Used Car Financing Market Size, By Body Style Type, By Value (USD Billion), 2019–2030
Table 32 Malaysia Used Car Financing Market Size, By Financier, By Value (USD Billion), 2019–2030
Table 34 Singapore Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Table 35 Singapore Used Car Financing Market Size, By Body Style Type, By Value (USD Billion), 2019–2030
Table 36 Singapore Used Car Financing Market Size, By Financier, By Value (USD Billion), 2019–2030
Table 38 Vietnam Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Table 39 Vietnam Used Car Financing Market Size, By Body Style Type, By Value (USD Billion), 2019–2030
Table 40 Vietnam Used Car Financing Market Size, By Financier, By Value (USD Billion), 2019–2030
Table 38 Rest of APAC Used Car Financing Market Size, By Value (USD Billion), 2019–2030
Table 39 Rest of APAC Used Car Financing Market Size, By Body Style Type, By Value (USD Billion), 2019–2030
Table 40 Rest of APAC Used Car Financing Market Size, By Financier, By Value (USD Billion), 2019–2030
Table 41 The Bank of China Company Overview
Table 42 The Bank of China Financial Overview
Table 43 HDFC Bank Ltd Company Overview
Table 44 HDFC Bank Ltd Financial Overview
Table 45 Cholamandalam Investment and Finance Company Limited Company Overview
Table 46 Cholamandalam Investment and Finance Company Limited Financial Overview
Table 47 Sundaram Finance Ltd Company Overview
Table 48 Sundaram Finance Ltd Financial Overview
Table 49 Bajaj Finserv Company Overview
Table 50 Bajaj Finserv Financial Overview
Table 51 Mahindra Finance Company Overview
Table 52 Mahindra Finance Financial Overview
Table 53 Sumitomo Mitsui Banking Corporation Group Company Overview
Table 54 Sumitomo Mitsui Banking Corporation Group Financial Overview
Table 55 Korea Development Bank Company Overview
Table 56 Korea Development Bank Financial Overview
Table 57 Chandgan Auto Finance Co. Ltd Company Overview
Table 58 Chandgan Auto Finance Co. Ltd Financial Overview
Table 59 Ford Motor Credit Company Overview
Table 60 Ford Motor Credit Company Financial Overview
Table 61 BYD Auto Finance Company Limited Company Overview
Table 62 BYD Auto Finance Company Limited Financial Overview
Market Segmentation
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