Region:Asia
Author(s):Jalaj
Product Code:KR1394
The Indonesia Auto Finance Market has been defined as the total credit disbursement by banks/NBFCs and Captive finance companies towards the financing of used & new cars. However, in 2020 market received huge setbacks owing to the global pandemic of COVID-19 as the market witnessed a negative growth rate. The Indonesia Auto Finance market was reduced in 2020. Although, in 2021 the market recovered significantly and registered a growth rate of ~48% and reached a market size of USD 14.7 Bn.
Revision of down payment rates, expanding urban population, low-interest rates, and Customized loan schemes are some of the growth drivers of the Indonesia Auto Finance market. The government of Indonesia and financial regulatory authority have lowered the down payment rates (from 15-30% to 0-20%) and the interest rates to make financing a viable option for everyone who is considering purchasing an automobile.
The Indonesia Auto Finance market ecosystem is highly fragmented as the market is controlled by a few market leaders including Bankmega, Danamon, BNI, Mandiri, CIMB NIAGA, Bank Mestika, and Bank Jasa Jakarta. The Indonesia Auto Finance industry ecosystem is huge as it comprises NBFCs, Captives, Dealerships, and Online Auto-classifieds companies.
By Ownership of Vehicle: In Indonesia, almost 57% of new automobiles have financing, compared to about 43% of used cars, even though there are more than twice as many used cars as new ones. In 2021, a total of 2.5 Mn vehicles were sold in the Indonesia auto finance market out of which 0.7 Mn are new vehicles and 1.7 Mn are used vehicles. In 2021, a total of 1.7 Mn used vehicles were sold in the industry out of which 0.3 Mn are 4W Commercial & more and ~1.4 Mn are Passenger Vehicles. Additionally, out of ~0.7 Mn new vehicles in 202, 0.1 Mn were 4W Commercial & more and ~0.6 Mn were Passenger Vehicles.
By Type of Lenders: Banks currently issue more than half of auto finance loans, primarily due to their high credibility and lower interest rates. In 2021, Banks approved 53% of the total credit disbursed followed by non-captive NBFCs, and Captive NBFCs which rule 26% and 21% of the market respectively. Bank rates can range ~4% per annum. Some banks may offer an interest rate of ~6%, but this is usually for used cars. Loan tenure is 1 – 5 years and also have the option available for early loan repayment by paying early repayment fee.
By Geographical Locations: West Java and Jakarta are the leading areas in Indonesia auto finance market with a market share of 35% and a combined value of USD 5.3 Bn. Other regions such as Jawa Tengah, hold approximately 8.4% of the market share, with Jawa Timur (9.5%), Sumatera Utara (4.1%), and other regions accounting for 42.1%. All the automobile manufacturers in Indonesia (including passenger car manufacturers and commercial truck manufacturers) are a member of the non-governmental Association of Indonesia Automotive Industries​. In the passenger vehicle (PV) segment, the largest contribution is from segments with products priced at USD 16,138 and below, which were mainly the 4X2 and LCGC segments.
Indonesia Auto- Finance Market Segmentation |
|
By ownership |
· New · Used |
By Type of Lender |
· Banks · NBFCs · Captive Financing Companies |
By Category of Vehicle |
· Commercial · Personal |
By Duration of Loan basis |
· Less than 2 Years · 3 years · 4 years · 5-6 years |
By Geographical Location |
· West Java · Jakarta · Jawa Tenegah · Jawa Timur · Sumatera Ultara · Others |
1.1 Auto Finance Market: 2017-2026
1.2 Auto Insurance and Extended Warranty Market, 2022
2.1 Demographic overview and major industries of Indonesia
2.2 Economic Overview of Indonesia
2.3 Trade Scenario of Indonesia
2.4 Financing overview of Indonesia
3.1 Vehicle sales by Type and Brand, 2022
3.2 New and Used Car Sales, 2022
3.3 Financing of major OEM Brands basis Total vehicle sales
3.4 Indonesia Automotive Market - Trade Scenario
3.5 Indonesia Auto Finance Ecosystem (Banks, NBFCs, Dealerships, Captives)
3.6 Indonesia Auto Finance Market Evolution
3.7 Major Types of auto loans available in the Indonesia Auto Finance Market
3.8 Indonesia Auto Finance Market Value Chain Analysis and Partnership Models
4.1 Growth Drivers of Indonesia Auto Finance Industry
4.2 Decision making Parameters for selecting Auto loan Vendor
4.3 SWOT Analysis of the industry
4.4 Government initiatives in the industry
4.5 Issues and challenges in the industry
4.6 Trends and Developments in the Industry
4.7 COVID-19 Impact on the Indonesia Auto Finance Industry
4.8 Customer JourneyS
5.1 Indonesia Auto Finance Market Sizing, 2021
5.2 Indonesia Auto Finance Market Segmentation – Categories, 2021
5.3 Number of Auto Loans in Indonesia by Type and Geography, 2021
6.1 Indonesia Auto Finance Aggregator Market Overview
6.2 Impact of Aggregator Platforms on various institutions
6.3 Case study: Cermati
6.4 Case Study: Broom
7.1 Market Share of Major Auto Finance Players
7.2 Details of the major Auto Finance players
7.3 Strengths of Major Auto Finance Players
7.4 Recent Developments of Major Auto Finance Players
7.5 Heat Map showing Major Auto Finance Players and the various associated OEM Brands
7.6 Details of Major Auto Dealer Groups in Indonesia
8.1 Indonesia Auto Finance Market - Future Sizing, 2026F
8.2 Indonesia Auto Finance Market - Future Segmentation, 2026F
8.3 Emergence of EV Market in Indonesia
8.4 Digital Disruptions in the Indonesia Auto Finance Industry
9.1 For the benefit of customers
9.2 For the benefit of business – Technological Updates, Corporate Strategies, and Financing Collaborations
10.1 Market Share of Major players in the Indonesia Auto Insurance Market, 2022
10.2 Cross Comparison of the Major Players in the Indonesia Auto Insurance Market, 2022
10.3 Capital adequacy ratio and solvency ratio of major players in the Indonesia Auto Insurance Market, 2022
10.4 Total Assets and Direct Premium Receivables of major players in the Indonesia Auto Insurance Market, 2022
10.5 Local People Contact Details – Insurance Market
10.6 Regulations for a foreign entrant into the auto insurance market in Indonesia
11.1 Insurers or Service Companies providing extended warranty to Automotives in Indonesia
12.1 For Insurance in Indonesia
12.2 For Extended Warranty in Indonesia
Step: 1 Identifying Key Variables: Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around market to collate industry level information.
Step: 2 Market Building: Collating statistics on Auto-finance market over the years, penetration of marketplaces and service providers ratio to compute revenue generated for Indonesia Auto-Finance market. We will also review service quality statistics to understand revenue generated which can ensure accuracy behind the data points shared.
Step: 3 Validating and Finalizing: Building market hypothesis and conducting CATIs with industry exerts belonging to different companies to validate statistics and seek operational and financial information from company representatives.
Step: 4 Research output: Our team will approach multiple auto finance providing channels and understand nature of product segments and sales, consumer preference and other parameters, which will support us validate statistics derived through bottom to top approach from auto finance providers.
The Indonesia Auto Finance market has reached USD 19.19 Bn in 2022.
Indonesia Auto Finance Market is expected to reach USD 36.38 Bn in the forecasted period of 2022-2026 with a CAGR of 20.2%.
Bankmega, Danamon, BNI, Mandiri, CIMB NIAGA, Bank Mestika, and Bank Jasa Jakarta are some of the prominent players operating in the Indonesia Auto Finance market.
Revision of down payment rates, expanding urban population, low-interest rates, and Customized loan schemes are the major growth drivers of the Indonesia Auto Finance market.
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