Global Automotive Financing Market – Analysis and Forecast (2023-2030)

Industry Insights by Provider Type (OEMs, Banks, Other Financial Institutions), by Purpose Type (Leasing, Loan, Others), by Finance Type (Indirect, Direct), by Vehicle Type (Passenger Vehicle, Commercial Vehicle)

Industry Overview

The global automotive financing market was valued at USD 221.0 billion in 2022 and is expected to reach USD 321.8 billion by 2030, growing at a CAGR of 7.4% during 2023-2030. The growth of this market is attributed to the rapid need for using superior quality products in the car thereby escalating the sales of global automobiles along with the incorporation of upgraded technology features in automobile parts.

This technological upgradation in automobiles is thereby uplifting its demand and hence this industry is enhancing its customer base at extensive rate. Furthermore, excessive investments in autonomous vehicles along with prompt financing from dealers, banks and credit unions are further contributing towards the growth of global automotive financing market.

Due to features such as safety and convenience provided by the autonomous vehicles to the drivers thus motivates the users to invest in the research and development activities in automotive domain. Furthermore, in order to invest in autonomous vehicles the end users require financing from credit union, dealers and banks that further bolster the need of automotive financing and anticipated to drive the growth of global automotive financing market.

Market Segmentation

Insight by Provider Type

On the basis of provider type, the global automotive financing market is categorized into OEMs, banks, and other financial institutions. Amongst these segments, banks segment is expected to generate largest revenue by 2030 due to steady procedures and use of less documents in availing the finance.

Insight by Purpose Type

On the basis of purpose type, the global automotive financing market is segmented into leasing, loan, and others. Amongst these segments, leasing is expected to witness highest CAGR during the forecast period owing to changing trends observed amongst the customers and the millennials generation towards leasing of products that is considered to be viable option as compared to that of purchasing a product.

Insight by Vehicle Type

Based on vehicle type, the global automotive financing market is bifurcated into passenger and commercial vehicles. Between these, commercial vehicles are anticipated to generate larger revenue by 2030 as these vehicles are more expensive and provide easy access to financial schemes to the clients.

Industry Dynamics

Industry Trends

Extensive trend of digitalization progressions in blockchain technology along with excessive use of superior telematics and online services are the key trends observed in the global automotive financing market. These emerging trends in automotive financing market are further uplifting the customer base of this automotive finance.

Growth Drivers

Extensive demand for electric vehicles along with excessive investments done towards autonomous vehicles are the key factors that are expected to drive the growth of global automotive financing market. Due to various benefits of electric vehicle such as environment friendly, no use of fossil fuels and low maintenance is thus making the vehicle extremely popular globally. However, in order to own an electric vehicle is a bit difficult as it is costly in comparison to that of diesel and petrol car and in order to buy the vehicle automotive financing comes into picture.

Challenges

Excessive competition observed between the key players in this market is the key factor that is anticipated to hinder the growth of global automotive financing market.

Geographic Overview

Geographically, Europe was the largest automotive financing market in 2020. The growth of the European market is attributed towards increasing number of finance service providers in the region. The service providers of finance in the region are emphasizing upon availing various services such as maintenance, insurance and fleet services. Moreover, the region is extending its effort towards making people aware related to finance schemes that is further escalating the growth of automotive financing market in this region.

Moreover, Asia-Pacific is expected to witness highest CAGR during the forecast period. The APAC market is growing due to the extensive efforts undertaken by the government authorities in countries such as China, India, and Japan towards consumer interest that is further uplifting the growth of the automotive industry. In addition, the increasing number of showrooms of automobiles and large number of used car outlets is propelling the growth of automotive financing in this region.

Competitive Insight

Key players in the automotive financing market are catering to the demand of these devices by investing in technologically advanced products in their product portfolio across the globe. They are availing their service via online channels and are attributing their efforts towards availing special loan packages to the customers. Furthermore, the companies are making coalitions with car rental companies and transportation companies in order to extend its market base.

Some of the major players operating in the global automotive financing market are Bank of China, Mercedes-Benz Financial Services,  Toyota Financial Services, Hitachi Capital Asia Pacific, Bank of America, Volkswagen Finance, Banquo Bradesco Financiamentos, BNP Paribas,   Ally Financial, Wells Fargo,  Industrial and Commercial Bank of India, HSBC, Capital One, and HDFC Bank.

Forecast Parameters

• Identifying variables and establishing market impact.
• Establishing market trends regionally.
• Analyzing opportunities and market penetration rates by understanding product commercialization, regional expansion.
• Analyzing demand and supply trends and changes in industry dynamics to establish future growth.
• Analyzing sustainability strategies adhered by market participants in an attempt to determine future course of the market.
• Analyzing historical market trends and super-imposing them on the current and future variables to determine year-on-year trend.
• Understanding adoption, production, export, import and regulatory framework.

Data Validation

• Estimated and forecasted data was validated through industry experts.
• Apart from industry experts, data triangulation methods were used for validation.
• Bottom-up and top-down approach has been used for estimation and forecast of market data, whereas the top-down approach was used for validation.
• Demand, as well as supply-side surveys, were conducted in order to understand the industry dynamics and data validation.

Primary Research

VynZ Research conducts extensive primary research to understand the market dynamics, validate market data and have key opinions from the industry experts. The key profiles approached within the industry includes, CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads and Others. Also, end user surveys comprising of consumers are also conducted to understand consumer behaviour.

Source: VynZ Research

Source: VynZ Research

1.    Research Overview

        1.1.    The Report Offers
        1.2.    Market Coverage
                1.2.1.    By Provider Type
                1.2.2.    By Purpose Type
                1.2.3.    By Finance Type
                1.2.4.    By Vehicle Type
                1.2.5.    By Region
        1.3.    Research Phases
        1.4.    Limitations
        1.5.    Research Methodology
                1.5.1.    Data Sources
                        1.5.1.1.    Primary Research
                        1.5.1.2.    Secondary Research
                1.5.2.    Methodology
                        1.5.2.1.    Data Exploration
                        1.5.2.2.    Forecast Parameters
                        1.5.2.3.    Data Validation
                        1.5.2.4.    Assumptions
                1.5.3.    Study Period & Data Reporting Unit

2.    Executive Summary

3.    Industry Overview

        3.1.    Industry Dynamics
                3.1.1.    Market Growth Drivers
                3.1.2.    Market Restraints
                3.1.3.    Key Market Trends
                3.1.4.    Major Opportunities
        3.2.    Industry Ecosystem
                3.2.1.    Porter’s Five Forces Analysis
                3.2.2.    Recent Development Analysis
                3.2.3.    Value Chain Analysis
        3.3.    Competitive Insight
                3.3.1.    Competitive Position of Industry Players
                3.3.2.    Market Attractive Analysis

4.    Global Market Estimate and Forecast

        4.1.    Global Market Overview
        4.2.    Global Market Estimate and Forecast to 2030

5.    Market Segmentation Estimate and Forecast

        5.1.    By Provider Type
        5.2.    OEMs
                5.2.1    Market Definition
                5.2.1    Market Estimation and Forecast to 2030
        5.3.    Banks 
                5.3.1    Market Definition
                5.3.1    Market Estimation and Forecast to 2030
        5.4.    Other Financial Institutions
                5.4.1    Market Definition
                5.4.1    Market Estimation and Forecast to 2030
        5.5.    By Purpose Type
                5.5.1.    Leasing
                        5.5.1.1.    Market Definition
                        5.5.1.2.    Market Estimation and Forecast to 2030
                5.5.2.    Loan
                        5.5.2.1.    Market Definition
                        5.5.2.2.    Market Estimation and Forecast to 2030
                5.5.3.    Others
                        5.5.3.1.    Market Definition
                        5.5.3.2.    Market Estimation and Forecast to 2030
        5.6.    By Finance Type
                5.6.1.    Indirect
                        5.6.1.1.    Market Definition
                        5.6.1.2.    Market Estimation and Forecast to 2030
                5.6.2.    Direct
                        5.6.2.1.    Market Definition
                        5.6.2.2.    Market Estimation and Forecast to 2030
        5.7.    By Vehicle Type
                5.7.1.    Passenger Vehicle
                        5.7.1.1.    Market Definition
                        5.7.1.2.    Market Estimation and Forecast to 2030
                5.7.2.    Commercial Vehicle
                        5.7.2.1.    Market Definition
                        5.7.2.2.    Market Estimation and Forecast to 2030

6.    North America Market Estimate and Forecast

        6.1.    By Provider Type
        6.2.    By Purpose Type
        6.3.    By Finance Type
        6.4.    By Vehicle Type
        6.5.    By Country
                6.5.1.    U.S. Market Estimate and Forecast
                6.5.2.    Canada Market Estimate and Forecast
                6.5.3.    Mexico Market Estimate and Forecast

7.    Europe Market Estimate and Forecast

        7.1.    By Provider Type
        7.2.    By Purpose Type
        7.3.    By Finance Type
        7.4.    By Vehicle Type
        7.5.    By Country
                7.5.1.    Germany Market Estimate and Forecast
                7.5.2.    France Market Estimate and Forecast
                7.5.3.    U.K. Market Estimate and Forecast
                7.5.4.    Italy Market Estimate and Forecast
                7.5.5.    Spain Market Estimate and Forecast
                7.5.6.    Russia Market Estimate and Forecast
                7.5.7.    Rest of Europe Market Estimate and Forecast

8.    Asia-Pacific Market Estimate and Forecast

        8.1.    By Provider Type
        8.2.    By Purpose Type
        8.3.    By Finance Type
        8.4.    By Vehicle Type
        8.5.    By Country 
                8.5.1.    China Market Estimate and Forecast
                8.5.2.    Japan Market Estimate and Forecast
                8.5.3.    India Market Estimate and Forecast
                8.5.4.    South Korea Market Estimate and Forecast
                8.5.5.    Rest of Asia-Pacific Market Estimate and Forecast

9.    Rest of the World (RoW) Market Estimate and Forecast

        9.1.    By Provider Type
        9.2.    By Purpose Type
        9.3.    By Finance Type
        9.4.    By Vehicle Type
        9.5.    By Country
                9.5.1.    Brazil Market Estimate and Forecast
                9.5.2.    Saudi Arabia Market Estimate and Forecast
                9.5.3.    South Africa Market Estimate and Forecast
                9.5.4.    U.A.E. Market Estimate and Forecast
                9.5.5.    Other Countries Market Estimate and Forecast

10.    Company Profiles

            10.1.    Bank of China
                    10.1.1.    Snapshot
                    10.1.2.    Overview
                    10.1.3.    Offerings
                    10.1.4.    Financial Insight
                    10.1.5.    Recent Developments
            10.2.    Mercedes-Benz Financial Services
                    10.2.1.    Snapshot
                    10.2.2.    Overview
                    10.2.3.    Offerings
                    10.2.4.    Financial Insight
                    10.2.5.    Recent Developments
            10.3.     Toyota Financial Services
                    10.3.1.    Snapshot
                    10.3.2.    Overview
                    10.3.3.    Offerings
                    10.3.4.    Financial Insight
                    10.3.5.    Recent Developments
            10.4.    Hitachi Capital Asia Pacific
                    10.4.1.    Snapshot
                    10.4.2.    Overview
                    10.4.3.    Offerings
                    10.4.4.    Financial Insight
                    10.4.5.    Recent Developments
            10.5.    Bank of America
                    10.5.1.    Snapshot
                    10.5.2.    Overview
                    10.5.3.    Offerings
                    10.5.4.    Financial Insight
                    10.5.5.    Recent Developments
            10.6.    Volkswagen Finance
                    10.6.1.    Snapshot
                    10.6.2.    Overview
                    10.6.3.    Offerings
                    10.6.4.    Financial Insight
                    10.6.5.    Recent Developments
            10.7.    Banquo Bradesco Financiamentos
                    10.7.1.    Snapshot
                    10.7.2.    Overview
                    10.7.3.    Offerings
                    10.7.4.    Financial Insight
                    10.7.5.    Recent Developments
            10.8.    BNP Paribas
                    10.8.1.    Snapshot
                    10.8.2.    Overview
                    10.8.3.    Offerings
                    10.8.4.    Financial Insight
                    10.8.5.    Recent Developments
            10.9.    Ally Financial 
                    10.9.1.    Snapshot
                    10.9.2.    Overview
                    10.9.3.    Offerings
                    10.9.4.    Financial Insight
                    10.9.5.    Recent Developments
            10.10.    Wells Fargo
                    10.10.1.    Snapshot
                    10.10.2.    Overview
                    10.10.3.    Offerings
                    10.10.4.    Financial Insight
                    10.10.5.    Recent Developments
            10.11.    Industrial and Commercial Bank of India
                    10.11.1.    Snapshot
                    10.11.2.    Overview
                    10.11.3.    Offerings
                    10.11.4.    Financial Insight
                    10.11.5.    Recent Developments
            10.12.    HSBC
                    10.12.1.    Snapshot
                    10.12.2.    Overview
                    10.12.3.    Offerings
                    10.12.4.    Financial Insight
                    10.12.5.    Recent Developments
            10.13.    Capital One 
                    10.13.1.    Snapshot
                    10.13.2.    Overview
                    10.13.3.    Offerings
                    10.13.4.    Financial Insight
                    10.13.5.    Recent Developments
            10.14.    HDFC Bank
                    10.14.1.    Snapshot
                    10.14.2.    Overview
                    10.14.3.    Offerings
                    10.14.4.    Financial Insight
                    10.14.5.    Recent Developments

11.    Appendix

        11.1.    Exchange Rates
        11.2.    Abbreviations

Note: Financial insight and recent developments of different companies are subject to the availability of information in the secondary domain.

List of Tables

Table 1 Sources
Table 2 Study Periods
Table 3 Data Reporting Unit
Table 4 Global Automotive Financing Market Size, by Provider Type, 2018 – 2022  (USD Billion)
Table 5 Global Automotive Financing Market Size, by Provider Type, 2023 – 2030 (USD Billion)
Table 6 Global Automotive Financing Market Size, by Purpose Type, 2018 – 2022  (USD Billion)
Table 7 Global Automotive Financing Market Size, by Purpose Type, 2023 – 2030 (USD Billion)
Table 8 Global Automotive Financing Market Size, by Finance Type, 2018 – 2022  (USD Billion)
Table 9 Global Automotive Financing Market Size, by Finance Type, 2023 – 2030 (USD Billion)
Table 10 Global Automotive Financing Market Size, by Vehicle Type, 2018 – 2022  (USD Billion)
Table 11 Global Automotive Financing Market Size, by Vehicle Type, 2023 – 2030 (USD Billion)
Table 12 Global Automotive Financing Market Size, by Region, 2018 – 2022  (USD Billion)
Table 13 Global Automotive Financing Market Size, by Region, 2023 – 2030 (USD Billion)
Table 14 North America Automotive Financing Market Size, by Provider Type, 2018 – 2022  (USD Billion)
Table 15 North America Automotive Financing Market Size, by Provider Type, 2023 – 2030 (USD Billion)
Table 16 North America Automotive Financing Market Size, by Purpose Type, 2018 – 2022  (USD Billion)
Table 17 North America Automotive Financing Market Size, by Purpose Type, 2023 – 2030 (USD Billion)
Table 18 North America Automotive Financing Market Size, by Finance Type, 2018 – 2022  (USD Billion)
Table 19 North America Automotive Financing Market Size, by Finance Type, 2023 – 2030 (USD Billion)
Table 20 North America Automotive Financing Market Size, by Vehicle Type, 2018 – 2022  (USD Billion)
Table 21 North America Automotive Financing Market Size, by Vehicle Type, 2023 – 2030 (USD Billion)
Table 22 North America Automotive Financing Market Size, by Country, 2018 – 2022  (USD Billion)
Table 23 North America Automotive Financing Market Size, by Country, 2023 – 2030 (USD Billion)
Table 24 Europe Automotive Financing Market Size, by Provider Type, 2018 – 2022  (USD Billion)
Table 25 Europe Automotive Financing Market Size, by Provider Type, 2023 – 2030 (USD Billion)
Table 26 Europe Automotive Financing Market Size, by Purpose Type, 2018 – 2022  (USD Billion)
Table 27 Europe Automotive Financing Market Size, by Purpose Type, 2023 – 2030 (USD Billion)
Table 28 Europe Automotive Financing Market Size, by Finance Type, 2018 – 2022  (USD Billion)
Table 29 Europe Automotive Financing Market Size, by Finance Type, 2023 – 2030 (USD Billion)
Table 30 Europe Automotive Financing Market Size, by Vehicle Type, 2018 – 2022  (USD Billion)
Table 31 Europe Automotive Financing Market Size, by Vehicle Type, 2023 – 2030 (USD Billion)
Table 32 Europe Automotive Financing Market Size, by Country, 2018 – 2022  (USD Billion)
Table 33 Europe Automotive Financing Market Size, by Country, 2023 – 2030 (USD Billion)
Table 34 Asia-Pacific Automotive Financing Market Size, by Provider Type, 2018 – 2022  (USD Billion)
Table 35 Asia-Pacific Automotive Financing Market Size, by Provider Type, 2023 – 2030 (USD Billion)
Table 36 Asia-Pacific Automotive Financing Market Size, by Purpose Type, 2018 – 2022  (USD Billion)
Table 37 Asia-Pacific Automotive Financing Market Size, by Purpose Type, 2023 – 2030 (USD Billion)
Table 38 Asia-Pacific Automotive Financing Market Size, by Finance Type, 2018 – 2022  (USD Billion)
Table 39 Asia-Pacific Automotive Financing Market Size, by Finance Type, 2023 – 2030 (USD Billion)
Table 40 Asia-Pacific Automotive Financing Market Size, by Vehicle Type, 2018 – 2022  (USD Billion)
Table 41 Asia-Pacific Automotive Financing Market Size, by Vehicle Type, 2023 – 2030 (USD Billion)
Table 42 Asia-Pacific Automotive Financing Market Size, by Country, 2018 – 2022  (USD Billion)
Table 43 Asia-Pacific Automotive Financing Market Size, by Country, 2023 – 2030 (USD Billion)
Table 44 RoW Automotive Financing Market Size, by Provider Type, 2018 – 2022  (USD Billion)
Table 45 RoW Automotive Financing Market Size, by Provider Type, 2023 – 2030 (USD Billion)
Table 46 RoW Automotive Financing Market Size, by Purpose Type, 2018 – 2022  (USD Billion)
Table 47 RoW Automotive Financing Market Size, by Purpose Type, 2023 – 2030 (USD Billion)
Table 48 RoW Automotive Financing Market Size, by Finance Type, 2018 – 2022  (USD Billion)
Table 49 RoW Automotive Financing Market Size, by Finance Type, 2023 – 2030 (USD Billion)
Table 50 RoW Automotive Financing Market Size, by Vehicle Type, 2018 – 2022  (USD Billion)
Table 51 RoW Automotive Financing Market Size, by Vehicle Type, 2023 – 2030 (USD Billion)
Table 52 RoW Automotive Financing Market Size, by Country, 2018 – 2022  (USD Billion)
Table 53 RoW Automotive Financing Market Size, by Country, 2023 – 2030 (USD Billion)
Table 54 Snapshot – Bank of China
Table 55 Snapshot – Mercedes-Benz Financial Services
Table 56 Snapshot – Toyota Financial Services
Table 57 Snapshot – Hitachi Capital Asia Pacific
Table 58 Snapshot – Bank of America
Table 59 Snapshot – Volkswagen Finance
Table 60 Snapshot – Banquo Bradesco Financiamentos
Table 61 Snapshot – BNP Paribas
Table 62 Snapshot – Ally Financial
Table 63 Snapshot – Wells Fargo
Table 64 Snapshot – Industrial and Commercial Bank of India
Table 65 Snapshot – HSBC
Table 66 Snapshot – Capital One
Table 67 Snapshot – HDFC Bank

List of Figures

Figure 1 Market Coverage
Figure 2 Research Phases
Figure 3 Secondary Sources for Different Parameters
Figure 4 Methodology
Figure 5 Data Mining & Exploration
Figure 6 Data Triangulation
Figure 7 Assumptions for Market Estimation and Forecast
Figure 8 Market Synopsis
Figure 9 Global Automotive Financing Market - Growth Drivers and Restraints
Figure 10 Competitive Benchmark
Figure 11 Global Automotive Financing Market Highlight
Figure 12 Global Automotive Financing Market Size, by Provider Type, 2018 – 2030 (USD Billion)
Figure 13 Global Automotive Financing Market Size, by Purpose Type, 2018 – 2030 (USD Billion)
Figure 14 Global Automotive Financing Market Size, by Finance Type, 2018 – 2030 (USD Billion)
Figure 15 Global Automotive Financing Market Size, by Vehicle Type, 2018 – 2030 (USD Billion)
Figure 16 Global Automotive Financing Market Size, by Region, 2018 – 2030 (USD Billion)
Figure 17 North America Automotive Financing Market Highlight
Figure 18 North America Automotive Financing Market Size, by Provider Type, 2018 – 2030 (USD Billion)
Figure 19 North America Automotive Financing Market Size, by Purpose Type, 2018 – 2030 (USD Billion)
Figure 20 North America Automotive Financing Market Size, by Finance Type, 2018 – 2030 (USD Billion)
Figure 21 North America Automotive Financing Market Size, by Vehicle Type, 2018 – 2030 (USD Billion)
Figure 22 North America Automotive Financing Market Size, by Country, 2018 – 2030 (USD Billion)
Figure 23 Europe Automotive Financing Market Highlight
Figure 24 Europe Automotive Financing Market Size, by Provider Type, 2018 – 2030 (USD Billion)
Figure 25 Europe Automotive Financing Market Size, by Purpose Type, 2018 – 2030 (USD Billion)
Figure 26 Europe Automotive Financing Market Size, by Finance Type, 2018 – 2030 (USD Billion)
Figure 27 Europe Automotive Financing Market Size, by Vehicle Type, 2018 – 2030 (USD Billion)
Figure 28 Europe Automotive Financing Market Size, by Country, 2018 – 2030 (USD Billion)
Figure 29 Asia-Pacific Automotive Financing Market Highlight
Figure 30 Asia-Pacific Automotive Financing Market Size, by Provider Type, 2018 – 2030 (USD Billion)
Figure 31 Asia-Pacific Automotive Financing Market Size, by Purpose Type, 2018 – 2030 (USD Billion)
Figure 32 Asia-Pacific Automotive Financing Market Size, by Finance Type, 2018 – 2030 (USD Billion)
Figure 33 Asia-Pacific Automotive Financing Market Size, by Vehicle Type, 2018 – 2030 (USD Billion)
Figure 34 Asia-Pacific Automotive Financing Market Size, by Country, 2018 – 2030 (USD Billion)
Figure 35 RoW Automotive Financing Market Highlight
Figure 36 RoW Automotive Financing Market Size, by Provider Type, 2018 – 2030 (USD Billion)
Figure 37 RoW Automotive Financing Market Size, by Purpose Type, 2018 – 2030 (USD Billion)
Figure 38 RoW Automotive Financing Market Size, by Finance Type, 2018 – 2030 (USD Billion)
Figure 39 RoW Automotive Financing Market Size, by Vehicle Type, 2018 – 2030 (USD Billion)
Figure 40 RoW Automotive Financing Market Size, by Country, 2018 – 2030 (USD Billion)