How Is Singapore Auto Finance Market Positioned?
The Singapore Auto Finance industry is at a growth stage and is increasingly being supported by modern digital infrastructure and huge loan portfolio. The average cost of car loan in the industry is ~2.4% and~2.7% for a new or used car respectively. Singapore Auto Finance market has grown in the in past few years owing to the favorable policies by Government for expanding green cars sector, increasing average disposable income of people, growing investments by large players for customer satisfaction. Moreover, Emergence of digital finance aggregators, improving infrastructure, rising technological innovations along with increase in use of internet and rising mobile penetration have also led to this expansion in the market.
Market: The Auto Finance market basis credit disbursed as well as loan outstanding had seen relatively average growth in the last few years, recording a CAGR of ~% and ~% during 2015-2020 respectively. The CAGR had grown comparatively at a lower rate owing to less number of cars financed in 2020 due to COVID – 19.Other contributing factors for relatively lower CAGR were high cost of loan, time consuming application process, low vehicle sales growth and more. As of 2020, on an average, 85-90% of the vehicles sold in Singapore were financed.
Singapore Auto Finance Market Segmentation
By Type of Cars Financed
Singapore Auto Finance market is dominated by Used Vehicles in terms of absolute number of vehicles sold as well as financed. However, relatively finance penetration rate is higher for new vehicles than used vehicles in the country owing to higher prices of the former.
By Credit Disbursed
Passenger Vehicles occupy the lion’s share of the total credit disbursed in the Auto Finance Market of Singapore with New Vehicles and Used Vehicles financing almost equally dominating the Passenger Vehicle segment.
By Loan Outstanding
Passenger Vehicles occupy the lion’s share of the 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
Majority of the Auto Loan Outstanding in Singapore is through Banks owing to the huge loan portfolio offered by them at comparatively lower interest rates.
Competitive Scenario in 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 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 Future Outlook and 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.
Key Segments Covered:-
By Type of Cars Financed- (Units)
New Vehicles
Used Vehicles
By Credit Disbursed (By SGD Billion)
Commercial Vehicles
Passenger Vehicles
New Vehicles
Used Vehicles
Motorcycles
By Loan Outstanding (By SGD Billion)
Commercial Vehicles
Passenger Vehicles
New Vehicles
Used Vehicles
Motorcycles
By Type of Institution (Loan Outstanding) (SGD Billion)
Banks & Subsidiaries
Finance Companies
Others
Companies Covered
(Banks)
DBS Bank
UOB
MayBank
OCBC
Standard Chartered Bank
(Finance Companies)
Hong Leong Finance
Singapura Finance
Sing Investment & Finance
Singapore Auto Finance Property Holdings
Credit Master
Carro
SG Cash N Cars
Speed Credit
SF Holdings
Accord Motoring
Vincar
Goldbell Financial Services
Capitall
Money Max Leasing
Key Target Audience
Existing Auto Finance Companies
Banks
OEM Dealerships
Captive Finance Companies
Credit Unions
Private Finance Companies
New Market Entrants
Government Organizations
Investors
Auto mobile Associations
Auto mobile OEMs
Time Period Captured in the Report:-
Historical Period: 2015-2020
Forecast Period: 2020-2025
Key Topics Covered in the Report:-
Comprehensive analysis of Singapore Auto Finance Market and its segments.
Listed major players and their positioning in the market.
Identified major industry developments in last few years and assessed the future growth of the industry.
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