Nigeria Car Finance Market Outlook to 2027F
By Distribution Channels (OEMs, Banks, NBFCs, Commercial Banks, Investment Bank), By type of Vehicles (Passenger, Commercial), By tenure of Loan (0-5 years, 6-7 years, and 8-9 year) By condition of Vehicle (old, new), and By Region
Region:Africa
Product Code:KROD124
February 2023
70
About the Report
The report provides a comprehensive analysis of the potential of Car Finance Industryin Nigeria. The report also covers overview and genesis of the industry, market size in terms of Credit disbursed.
Its market segmentation includes by distribution channels, by type of vehicles, by tenure of loan, by condition of vehicle, by region; growth enablers and drivers, challenges and bottlenecks, trends driving adoption of technological innovation; regulatory framework; end user analysis, industry analysis, competitive landscape including competition scenario, market shares of major players on the basis of Interest on new passenger vehicles, margin of finance, Maximum tenure of loan, Products Offered. The report concludes with future market projections of each product segmentation and analyst recommendations.
Market Overview:
According to Ken Research estimates, the Nigeria car finance market is forecasted to grow at a robust CAGR in the period of 2022P-2027F, owing to the rising demand for new and used cars among the population along with the easy availability of finance and low interest rates.
- Banks have the largest market share in Auto-financing industry of Nigeria. Banks offer very lucrative offers for the consumers which can’t be provided by other financing institutions.
- Major portion of the credit is disbursed in the southern region of Nigeria, which is very well developed and is hub of all the activities in Nigeria.
Key Trends by Market Segment:
By Region: Major portion of the credit is disbursed in the southern region of Nigeria, which is very well developed and is hub of all the activities in Nigeria.
By Type of Vehicles: In Nigeria, passenger vehicle has a high share as commercial vehicle market is very small. Also, there is very poor public transportation and other infrastructure like end-to-end connectivity.
Competitive Landscape
In Nigeria Car Finance Market there are about ~ players operating in the overall market, and top ~ players accounted ~% share in the market in terms of revenue. The market is at maturity stage with high ownership of car.
Future Outlook
The Nigeria Car Finance Market is projected to show a significant growth of CAGR ~% in the forecasted period of 2022P-2027F, with the easy availability of finance and low interest rates and strict government initiatives.
Scope of the Report
Its market segmentation includes By Distribution Channels (OEMs, Banks, NBFCs, Commercial Banks, Investment Bank), By type of Vehicles (Passenger, Commercial), By tenure of Loan (0-5 years, 6-7 years, and 8-9 year) By condition of Vehicle (old, new), and By Region (Central, Southern, Eastern Northern and Other).
|
By Distribution Channels |
OEMs Banks NBFCs Commercial Banks Investment Bank |
|
By type of Vehicles |
Passenger Commercial |
|
By tenure of Loan |
0-5 years 6-7 years 8-9 year |
|
By condition of Vehicle |
New Old |
|
By Region |
Central Southern Eastern Northern Other |
Products
Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report
- Auto Finance Providers
- Insurance companies
- Car Manufacturers
- Financial service provider
- NBFCs
- Fin-tech companies
- Global automotive finance companies
- Government Bodies & Regulating Authorities
Time Period Captured in the Report
- Historical Period: 2017-2022P
- Base Year: 2022P
- Forecast Period: 2022P-2027F
Companies
Major Players
- United Bank Of Africa
- FCMB
- Toyota
- Access bank
- Stanbic IBTC
- Guaranty Trust Bank
- Zenith Bank.
- Fidelity Bank
- Ecobank
Table of Contents
1. Executive Summary
2. Nigeria Car Finance Market Overview
2.1 Taxonomy of the Nigeria Car Finance Market
2.2 Industry Value Chain
2.3 Ecosystem
2.4 Government Regulations/Initiatives for the Nigeria Car Finance Market
2.5 Growth Drivers of the Nigeria Car Finance Market
2.6 Issues and Challenges of the Nigeria Car Finance Market
2.7 Impact of COVID-19 on the Nigeria Car Finance Market
2.8 SWOT Analysis
3. Nigeria Car Finance Market Size, 2017 – 2022
4. Nigeria Car Finance Market Segmentation
4.1 By Loan Tenure, 2017 - 2022
4.2 By Institution, 2017 - 2022
4.3 By Regional Split (North/East/West/South/Central), 2017 - 2022
5. Competitive Landscape
5.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
5.2 Strategies Adopted by Leading Players
5.3 Company Profiles – (Top 5 - 7 Major Players)
5.3.1 United Bank of Africa
5.3.2 FCMB
5.3.3 Toyota
5.3.4 Access bank
5.3.5 Stanbic IBTC
5.3.6 Guaranty Trust Bank
5.3.7 Zenith Bank.
6. Nigeria Car Finance Future Market Size, 2022 – 2027
7. Nigeria Car Finance Future Market Segmentation
7.1 By loan Tenure, 2022 - 2027
7.2 By Institution, 2027 - 2027
7.3 By Regional Split (North/East/West/South/Central), 2022 - 2027
8. Analyst Recommendations
9. Research Methodology
10. Disclaimer
11. Contact Us
Research Methodology
Step 1: Identifying Key Variables:
Our team will initially create an ecosystem for all the entities in the car finance market in Nigeria.
Step 2: Market Building:
In the next step, we have referred to multiple secondary and proprietary databases to perform deck research around the market and collate industry-level information to create an initial level hypothesis. We will also explore company-level info by referring press releases, annual reports, financial statements, and other documents to understand basic information about the companies and market level.
Step 3: Validating and Finalizing:
Later our team will conduct a series of Interviews with multiple C-Level Executives and other stakeholders belonging to different companies to confirm the market hypothesis, validate statistics and seek operational and financial information from company representatives.
Step 4: Research Output:
Furthermore, to validate this data our team will pitch each company as a potential customer through a mystery shopping exercise and will confirm the operational and financial performance of China Mattress Market Entities which have been shared by company executives and available on secondary databases. We will be conducting another set of CATIs with the respective entities to understand customer behaviour, channel preference, and other factors. We will also assess customer analysis in terms of their preferences and pain points.
Frequently Asked Questions
01 What is the Study Period of this Market Report?
The Car Finance Market is covered from 2017–2027 in this report, including a forecast for 2022P-2027F.
02 What are the Key Factors Driving the Car Finance Market?
The easy availability of finance and low interest rates.
03 What is the Future Growth Rate of the Nigeria Car Finance Market?
The Market is expected to witness a CAGR of ~% over the next five years.
04 Who are the Key Players in the Nigeria Car Finance Market?
Toyota, FCMB, GT Bank and Union Bank are the Key Players in the Nigeria Car Finance Market.
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