Insights

DISCOVER

COMPANY

Survey

SURVEY

Consulting

COUNSULTING

Create New Account

Book discovery call

Indonesia Car Finance Market Outlook to 2024

Growing Prominence of Captive Finance Companies Backed by Surging Car Sales to Drive Market Growth

Region:Asia

Author(s):Aditya

Product Code:KR924

Download Sample Report

Published On

November 2019

Total pages

Download Sample Report

About the Report

Click for updated report :- Indonesia Auto Finance Industry Outlook to 2026

The report titled "Indonesia Car Finance Market Outlook to 2024: Growing Prominence of Captive Finance Companies Backed by Surging Car Sales to Drive Market Growth" provides a comprehensive analysis of the Indonesia Car finance market including market evolution, market overview, market genesis, market size and market segmentation of various Players in the Market. Extensive focus has been placed in quantifying the credit disbursed and Car loans outstanding and several vehicles financed. The report covers aspects such as market segmentation (by loan tenure, new and used vehicles and type of Financial Institutions), customer perspective in the market and snapshot on Various Verticals of Multifinance Companies, Online Ad Listing sites and Analysis of Passenger Car Companies. Competitive landscape of major lenders including Bank of Central Asia (BCA Finance), Mandiri Bank (Mandiri Tunas Finance), Danamon Bank (Adira Dinamika Finance), CIMB Niaga , Bank Rakyat Indonesia, Bank Negara Indonesia, Megabank (WOM), ACC Finance, BFI Finance, Oto Multiartha, MPM Finance, Rabana Investindo, Toyota Astra Finance (Toyota and Daihatsu), Dipo Star Finance (Mitsubishi), Bussan Car Finance (Yamaha), Suzuki Car Finance (Suzuki). The report also covers future industry analysis (by credit disbursed and new and used Car Finance), future market segmentation, growth opportunities, up-coming business models, government regulations and analyst recommendations.

Indonesia Car Finance Market Overview and Size

The Car Finance Market in Indonesia witnessed steady growth during the period 2013-2018, owing to an increase in used Car vehicle sales over the same period. The market is dominated by multi finance companies that are backed by various Multinational banks catering majorly to the middle-class population. There are around 200 multi finance companies in Indonesia (OJK Bank Report). Consumer finance accounts for 90% of the total value of multi finance industry. Trends in the market were largely stimulated by low-interest rates in the Economy. Some challenges faced during the period in the market were the rising loan default rates, unstable vehicle sales and a pullback on loan issues lead by banks, in the latter half of the research period.

Indonesia Car Finance Market Segmentation

By New and Used Cars: The car Finance Market in Indonesia is segmented into New and Used Car finance with New Cars finance holding a majority share of the total Credit Disbursed in the market in 2019P. The major drivers behind the growth include rising sales of used vehicles as well as the decreasing prices of retail models in the market, which makes it attractive to buy cars.

By Tenure of Loan (New Car and Used Cars): The loan tenure selected by the customer depends on factors such as the price of the car, income level of the customer, flexible scheme options and other social factors such as family size and lifestyle of the individual. The maximum tenure allotted for a car loan by both banks and private finance companies is five years for new, however, the situations can change depending on a particular customer. It has been observed that people opting for 4-year loan tenure has accounted for the Majority of the new cars financed in 2019P followed by 3 Years loan tenure. Used cars usually, the tenure for a loan does not exceed 3 years.

By Banks, NBFCs and Captives (New Car and used Cars): Commercial banks have accounted for a Major Share in the Overall Car Finance Market of Indonesia on the basis of new Cars Financed. The second position in the market was captured by NBFCs and Multifinance Companies, who operate in the market, the non-financial institutions' Captive finance companies have contributed the remaining part of the credit disbursed for new car financing in 2019P.

Trends and Issues

The recovery of the Indonesian economy, lower financing rates, and improved business environment has positively impacted the consumer confidence index in Indonesia. This has resulted in increasing car sales in 2019P out of which 75.0% are financed by banks and other non-financial institutions. In order to stimulate the economic growth of the country, Otoritas Jasa Keuangan (OJK) reduced the down payment requirements in effect increased the Loan to value ratio in 2015. OJK has also introduced the Zero Don Payment option for people with a good Credit Score. This reform is expected to increase the sale of passenger and commercial cars as more number of people can avail car finance.

Competitive Landscape of Indonesia Car Finance Market

Competition in the market is extremely fragmented. The Major lending institution types in the market are Banks, Captives, Multi Finance Companies, they hold a Fragmented share in the lending space for New Cars, and similarly, banks dominate the Used Car segment but that is again very fragmented.

Indonesia Car Finance Market Future Outlook and Projections

Over the forecast period, the Indonesia Car Finance market is expected to be positive if there is a continuous need for Car among the population. Multiple fin-tech startups have also come up in the country’s financial sector which poses a threat to conventional finance companies and banks. These startups have developed products to augment the digitalization of the banking sector. This includes digital payments, online lending, online aggregation, and remote banking facilities which made the customer lending process uncomplicated and simple further facilitating the car finance market in the country. Banks and Captives are expected to continue their leading position in the market due to their vast networks and range of products. In addition to that, the Indonesia market is likely to witness a decline in Car sales which threatens the growth of the number of loans issued in the future.

Key Topics Covered in the Report

Executive Summary
Research Methodology
Indonesia Car Finance Market Overview and Genesis
Value Chain Analysis of Indonesia Car Finance Market, 2019P
Indonesia Finance Market Value Chain Analysis
Indonesia Car Finance Market Size, 2013-2019P
Indonesia Car Finance Market Segmentation
Major Trends and Development in Indonesia Car Finance Market
Regulatory Framework in the Indonesia Car Finance Market
Product Feature on Indonesia Car Finance Market
Ways to Finance a Car in Indonesia (Bank Finance or Multi Financing Companies, Personal Finance, Lease Financing)
Vendor Selection Process for Car Finance Company in Indonesia
Competitive Landscape containing Company and Product Profiles in the Indonesia Finance Market
Indonesia Finance Market Future Outlook and Projections, 2019P-2024
Analyst Recommendations for the Indonesia Car Finance Market

Products

Key Target Audience

Existing Car Finance Companies
Banks
Captive Finance Companies
Credit Unions
Private Finance Companies
New Market Entrants
Government Organizations
Investors
Carmobile Associations
Carmobile OEMs

Time Period Captured in the Report:

Historical Period: 2013-2019P
Forecast Period: 2019P-2024

Companies

Key Segments Covered:

By New and Used Cars

New cars
Used cars

By Lender Institutions

Banks
Captives
Multi Finance Companies (NBFCs)

By Loan Tenure between New and Used Cars

Two Years
Three Years
Four Years
Five Years
One year
Five Years or more

Banks

Bank of Central Asia (BCA Finance)
Mandiri Bank (Mandiri Tunas Finance)
Danamon Bank (Adira Dinamika Finance)
CIMB Niaga
Bank Rakyat Indonesia
Bank Negara Indonesia
Megabank (WOM)

NBFCs

ACC Finance
BFI Finance
Oto Multiartha
MPM Finance
Batavia Prosperindo
Radana Bhaskara
Indomobil Multi Jasa
Mandala Multifinance
Tifa Finance
Adira Quantum Multifinance
Clemont Finance Indonesia

Captives

Toyota Astra Finance (Toyota and Daihatsu)
Dipo Star Finance (Mitsubishi)
Bussan Auto Finance (Yamaha)
Suzuki Auto Finance (Suzuki)

1. Executive Summary

1.1Market Potential

1.2Market Segmentation

1.3Trends and Issues in Indonesia Car Finance Market

1.4Competitive Landscape

1.5Future Analysis and Projections

1.6Analyst Recommendation

2. Research Methodology

2.1. Market Definitions

2.2. Abbreviations

2.3. Market Size and Modeling

2.4Approach – Market Sizing

2.5Market Sizing – Indonesia Car Finance Market

2.6Variables (Dependent and Independent)

2.7Multi Factor Based Sensitivity Model

2.8Regression Matrix

2.9Limitations

2.10Final Conclusion

3. Indonesia Car Finance Market Overview and Genesis, 2013-2019P

4. Value Chain Analysis of Indonesia Car Finance Market, 2019P

4.1. Relationship Between Major Passenger Car Brands and Auto Financing Institutions, 2019P

4.2. Web Aggregators in Indonesia, 2019P

4.2.1. Online Car Classifieds market, 2019P

4.2.2. Car finance Aggregator Portals, 2019P

4.2.3. Company Profiles of Major Car Finance Aggregator Portals in Indonesia, 2019P

Cekaja

AturDuit

Cermati

4.3. Pain Points in Indonesia Car Finance Market

5. Indonesia Car Finance Market Size, 2013-2019P

5.1. By Credit Disbursed, 2013-2019P

By Number of New Cars and Used Car Financed, 2013-2019P

By New Car and Used Car Finance Penetration, 2013-2019P

6. Indonesia Car Finance Market Segmentation

6.1. By New Car and Used Car Finance, 2013-2019P

6.2. By Tenure of Loan (1 Year, 2 Years, 3 Years, 4 Years ,5 Years and More Than 5 Years), 2019P

6.2.1. For New Car, 2019P

6.2.2. For Used Car, 2019P

6.3. By Banks, Captives and NBFCs, 2019P

6.3.1. For New Car, 2019P

6.3.2. For Used Car, 2019P

7. Trends and Development in Indonesia Car Finance Market

Zero Down Payment Requirements and Lower Interest Rates

Growing Consumer Confidence Index

Increase in Car Sales

Lower Fuel Prices

Growth of Used Car Market

7.1. Recent Developments in Financing Company Activities, 2019P

8. Government Regulations in Indonesia Car Finance Market

Regulatory framework for Multi Finance Companies and Commercial Banks

Capital requirements: MultiFinance Companies

Foreign labour restriction

Membership requirement in other organisations

Credit Bureau

Mergers and Acquisitions

Regulation 14/POJK.03/2018

Regulation 20/8/PBI/2018

New Inclulsions in Regulations (In Comparison with OJK Regulation No. 35/POJK.05/2018 and OJK
Regulation No. 29/POJK.05/2014)

8.1. General Requirement and Documentation for New Car Financing, 2019P

Identification documents

8.2. General Requirement and Documentation for Used Car Financing, 2019P

9. Product Features in Indonesia Car Finance (Tenure, Interest Rate and Conditions)

9.1. BCA Bank, 2019P

9.2. Bank Mandiri

9.3. Toyota Astra Finance

9.4. Dipo Star Finance

9.5. Astra Credit Companies

10. Ways to Finance a Car in Indonesia (Bank Finance or Multi Financing Companies, Personal Finance, Lease Financing)

10.1. Car Financing

Car Mortgaged to the Bank

Salary Transfer

10.2. Buying a Car through Personal Finance

Car not Mortgaged to the Bank

Salary Transfer

10.3. Lease Finance

11. Vendor Selection Process for Car Finance Company in Indonesia

12. Market Share for Major Car Companies and Popular Models in Indonesia, 2018

12.1. Financial Penetration of Major Passenger Car Brand in Indonesia Car Finance Market, 2019P

13. Competitive Scenario in Indonesia Car Finance Market, 2019P

13.1. Market Share of Banks, NBFCs and Captives in Indonesia Car Finance Market, 2018 and 2019P

13.1.1. Market Share of Major Banks in Indonesia Car Finance Market, 2018 and 2019P

Strength and Weakness of Major Banks in Indonesia Car Finance Market

13.1.2. Market Share of Major NBFCs in Indonesia Car Finance Market, 2018 and 2019P

Strength and Weakness of Major NBFCs in Indonesia Car Finance Market, 2019P

13.1.3. Captives Market Share in Indonesia Car Finance Market, 2018 and 2019P

Strength and Weakness of Major Captives in Indonesia Car Finance Market, 2019P

13.2. List of Major Banks, NBFCs and Captives in Indonesia Car Finance Market, 2019P

13.3. Cross Comparison Analysis of Major Banks, NBFCs and Captives, 2018

13.4. Heat Maps for Major Players in Indonesia Car Finance Market

14. Company Profiles for Major Banks in Indonesia, 2019P

14.1. Bank Central Asia (BCA Finance)

14.2. Bank Mandiri (Mandiri Tunas Finance)

14.3. Bank Danamon Indonesia (Adira Dinamika Finance)

14.4. Bank CIMB Niaga

15. Company Profiles for Major Non Banking Financial Institutions in Indonesia Car Finance Market

15.1. ACC (Astra Sedaya Finance)

15.2. OTO Multiartha

15.3. BFI Finance

16. Company Profiles for Major Captive Non Banking Financial Institutions (Captives and Non Captives)

16.1. Toyota Astra Financial Services

16.2. Dipo Star Finance

16.3. Other Major Captive Finance Companies

17. Snapshot on Multi Financing Companies (Affiliates of Commercial Banks, Captives and NBFCs)

17.1. Financing Activities Share by Type, 2019P

18. Indonesia Car Finance Market Future Outlook and Projections, 2019P-2024F

Future Trends and Opportunities

18.1. By New Car and Used Car Finance, 2019P-2024F

18.2. By Loan Disbursed by Financial and Non Financial Institutions, 2024F

New Car, 2024F

Used Car, 2024F

20. Macroeconomic Factors affecting Indonesia Car Finance Market

20.1. Number of New Car Sold in Indonesia, 2013-2024F

20.2. Number of Used Car Sold in Indonesia, 2013-2024

20.3. Number of Households in Indonesia, 2013-2024

20.4. Number of Bank Branches, 2013-2024

Disclaimer

Contact Us

Why Buy From Us?

Refine Robust Result (RRR) Framework

What makes us stand out is that our consultants follows Robust, Refine and Result (RRR) methodology. i.e. Robust for clear definitions, approaches and sanity checking, Refine for differentiating respondents facts and opinions and Result for presenting data with story

Our Reach Is Unmatched

We have set a benchmark in the industry by offering our clients with syndicated and customized market research reports featuring coverage of entire market as well as meticulous research and analyst insights.

Shifting the Research Paradigm

While we don't replace traditional research, we flip the method upside down. Our dual approach of Top Bottom & Bottom Top ensures quality deliverable by not just verifying company fundamentals but also looking at the sector and macroeconomic factors.

More Insights-Better Decisions

With one step in the future, our research team constantly tries to show you the bigger picture. We help with some of the tough questions you may encounter along the way: How is the industry positioned? Best marketing channel? KPI's of competitors? By aligning every element, we help maximize success.

Transparency and Trust

Our report gives you instant access to the answers and sources that other companies might choose to hide. We elaborate each steps of research methodology we have used and showcase you the sample size to earn your trust.

Round the Clock Support

If you need any support, we are here! We pride ourselves on universe strength, data quality, and quick, friendly, and professional service.

Why Client Choose Us?

400000+ Reports in repository

150+ Consulting project a year

100+ Analysts

8000+ Client Queries in 2022