KSA Auto Finance Market Is Expected To Grow with Credit Disbursed Expected to Reach SAR 25,338.2 Mn by 2026F: Ken Research

Entry of women drivers in the market is expected to lead to an increase in the total cars sold, thereby positively affecting the credit disbursed in KSA Auto Finance market.
The Vision 2030 project in KSA has massive plans for the economy targeting to improve employment figures that might aid the auto finance market in the country.
The major players in the auto loan market include Al Rajhi and SNB followed by Emirates NBD, Banque Saudi Fransi. New banks that have entered the market include Al Jazira, Arab National Bank and Alinma.

Embracing digitalization: Automotive Financing Companies are increasingly moving towards higher technological advancements to improve operational profits as well as customer experience. For example- AI is increasingly making important decisions, from who gets approved for credit to how to answer customer questions about loan decisions in real time.

Entrance of New Players in the market and Increase in Private Entities: New players entering the KSA Auto finance market are Fin-tech companies. Around 38 companies have received approval from the Central Bank and have started garnering database by entering into the market with digital wallets and offering products like BNPL. The number of private entities in the Saudi Arabia auto finance market is increasing, hence the percentage share of government to private might shift to private.

Preference towards 4W instead of 2W: The car buying trend in KSA is driven by customers willing to buy new cars instead of used once. The population also prefers changing cars in every 5 years. Unlike South Asian countries where every household has a 2 wheeler, in KSA even the lowest income category commute using a car. Two wheelers in the kingdom of Saudi Arabia are perceived as an item of luxury rather than commute, and four wheelers have a higher preference rate.

Government policies: Vision 2030 by the KSA government has massive plans for the economy targeting to improve employment figures that might be fruitful for the auto finance market as well. Under the Vision 2030, the KSA Government plans on reducing the oil dependency and looking forward towards the adoption of Electric Vehicles. The government is keen on creating a domestic automotive industry and has encouraged global vehicle manufacturers to establish local operations.

Analysts at Ken Research in their latest publication “KSA Auto Finance Market Outlook to 2026F-Driven by Women Entering the Market, Growing Private Entities and Initiatives by the Government” by Ken Research observed the potential of Auto Finance Market Outlook in KSA. The rising Auto Finance consciousness among the population, along with increasing loan facilities, customer taste and preference, implementation of favourable government rules & regulations is expected to contribute to the market growth over the forecast period. The KSA Auto Finance Market is expected to grow at 6.6% CAGR over the forecasted period 2021-2026F.

Key Segments Covered:-

KSA Auto Finance

By Type of Lenders

Banks

NBFC

OEMS/Captives

By Type of Motor Vehicle

Passenger

Commercial

By Type of Commercial Motor Vehicle

HCV

MCV

LCV

By Type of Passenger Motor Vehicle

By Type of Vehicle Financed

New

Used

By Tenure of Loan for New Vehicles

1 Year

2 Year

3 Year and more

By Tenure of Loan for Old Vehicles

1 Year

2 Year

3 Year and more

Key Target Audience:-

KSA Auto Industries

Government Bodies & Regulating Authorities

Finance Industry

Car company

Automobile dealer and users

Time Period Captured in the Report:-

Historical Year: 2018-2021

Base Year: 2021

Forecast Period: 2022– 2026F

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Companies Covered:-

Al Rajhi Bank

Riyad Bank

National Commercial Bank

Abdul Latif Jameel

Arab National Bank

The Saudi Investment Bank

Emirates NBD

Saudi Finance Company

Al Amthal Financing Company

Alinma Bank

Key Topics Covered in the Report:-

KSA Automotive Market Overview

Landscape of Total Number of Cars in KSA Automotive Market, 2021-2024F

KSA Automotive Finance Market Overview

Ecosystem of KSA Auto Finance Market

KSA Auto Finance Market Evolution and Business Cycle

KSA Auto Finance Market Size, 2018-2021

KSA Auto Finance Market Segmentation, 2021 (By Type of Vehicle Financed, By Tenure of New and Old Vehicles, By Type of Commercial Vehicle, Type of Lending Bank and By Type of Lenders)

Industry Analysis of KSA Auto Finance Services

Decision Making Parameter for Selecting Car Loan Vendor

Trends and Developments in KSA Auto Finance Industry

SWOT Analysis of KSA Auto Finance Industry

Issues and Challenges in KSA Auto Finance Industry

Government policies affecting the KSA Auto finance Industry

Covid-19 Impact on the KSA Auto Finance Industry

Competition Framework for KSA Auto Finance

Future Outlook and Projections of the KSA Auto Finance Market, 2021-2026F

Market Opportunities and Analyst Recommendations

Analyst Recommendations

Research Methodology