Singapore Auto Finance Market Outlook to 2025: Ken Research
The report titled “Singapore Auto Finance Market Outlook to 2025- Driven by Green Car Loans, Growing Digital Advancements and Increasing Number of Finance Aggregators” provides a comprehensive analysis on the performance of the Auto Finance industry in Singapore. The report covers various aspects including credit disbursed, trends & developments, issues & challenges faced by the industry, competition landscape and more. The Singapore Auto Finance market report concludes with projections for future of the industry including forecasted values by 2025, market segmentations, COVID -19 impact and analysts’ recommendations.
Singapore Auto Finance Market Overview and Size
The Singapore Auto Finance Market was observed to be in growth stage during the period of 2015-2020owing to the growing digital advancements to ease loan application process, emerging green car loans, introduction of finance aggregators and more. The Singapore Auto Finance Industry had grown at a CAGR of 0.7% on the basis of Auto credit disbursed and 2.2% basis Auto Loan Outstanding in 2015-20. The CAGR was comparatively low owing to less number of cars financed in 2020 due to COVID – 19.As of 2020,on an average, 85-90% of the vehicles sold in Singapore were financed, with approximately ~65% of the cost share borrowed from Auto Financial Institutions.
Singapore Auto Finance Market Segmentations
By Type of Cars Financed (Units): Singapore Auto Finance market is dominated by Used Vehicles in terms of absolute number of vehicles sold as well as financed. However, relative penetration of auto finance is higher for new vehicles than used vehicles in the country, owing to higher prices of the former.
By Credit Disbursed and Loan Outstanding basis Type of Cars: Passenger Vehicles occupy the lion’s share of the total credit disbursed as well as loan outstanding in the Auto Finance Market of Singapore with New Vehicles and Used Vehicles financing almost equally dominating the Passenger Vehicle segment.
By Type of Institution basis Loan Outstanding: Majority of the Auto Loans in Singapore is through Banks owing to the huge number of loans offered by them at comparatively low interest rates.
Competitive Landscape of Singapore Auto Finance Market
The Auto Finance market of Singapore consists of a large number of Domestic as well as international players. However, only top few players occupy a lion’s share of the market (basis credit disbursed) making the Industry highly concentrated. Major Baking Institutions involved in Auto Loans Services in Singapore include DBS Bank, Standard Chartered, OCBC, MayBank, and UOB among others. Also, Major Non Banking Financial Institutions in the country include Hong Leong Finance, Singapura Finance, Sing Investment and Finance and more. The parameters at which the companies are competing are Interest Rate Offered, Clientele, service portfolio, Technology and more.
Singapore Auto Finance Market Future Outlook & Projections
The Singapore Auto Finance industry is expected to increase at a CAGR of 8.9% basis Auto credit disbursed and 1.3% basis Auto Loan Outstanding during 2020 to 2025.The credit disbursed is expected to rise in Singapore at higher than average CAGR owing to higher number of cars financed in the future. The government of Singapore is working towards expansion of Green Car Sales in the country, which is expected to increase the demand of ‘Green Car Loans’ in the future years. New Business Models such as Shared Ownership Financing may also emerge in the country in the coming years. Lastly, Industry is expected to move towards a digital growth with the expansion of Artificial Intelligence, Machine Learning, Big Data and more to further simplify loan application process.