Banking Financial Services and Insurance Loans and Advances

Brazil Car Finance Market Is Expected To Grow At A Robust CAGR, Owing To The Adoption Of Digital Technologies And Online Car Finance Applications: Ken Research

February 10, 2023

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Brazil Car Finance Market

Brazil Car Finance Market is in the growing stage, owing to the emergence of online car finance applications, rising demand for electric vehicles, adoption of digital technologies for car financing and increasing vehicle prices. The Car Finance Industry in Brazil is a consolidated market with key players such as Itaú Unibanco, Banco Bradesco, Banco Safra Limited, Banco Pan and Banco do Brasil etc.

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Key Market Findings:

Brazil Car Finance Market was valued at USD ~ in 2021 and is projected to grow to USD ~ by 2027F, registering a CAGR of ~% during the forecast period (2022P-2027F).
The inflation in commodity prices has compelled car manufacturing companies to increase vehicle prices in the last few years.

Preference of Car Financing Among Millennial Population: The attitude of Brazilian millennials regarding cars indicates that the majority of Brazilians born after 1980 currently own or lease a vehicle. Few young Brazilians would opt for vehicle with combustion engine, while the majority would prefer to purchase an electric vehicle. Car finance has increased in popularity in Brazil over the past few years as younger consumers have become more receptive to financing their car purchases than earlier generations. The fact that millennials in Brazil prefer loans and monthly payments as a result will help the nation’s Car Finance Industry to grow over the course of the predicted period.

Digitalizing Car Finance Industry: In order to stay competitive, financial services firms are integrating digital solutions more quickly. The most important technologies employed by financial companies today to offer customers the best car financing services are block chain, artificial intelligence, digital payment systems, and online mobile banking. Going digital can also provide genuine benefits for both parties while resolving a number of issues. Going digital contributes to the development, maintenance, and growth of the dealer-customer relationship. Additionally, new developments and trends in car financing have been made possible by new advancements in digital and cloud technologies. Car dealerships may now handle every part of their loan program thanks to this. Previously, manually processing the application required many days. However, thanks to digitization and technological innovation, the entire process now just takes a few minutes. Customers may thus readily take advantage of speedy transactions that are hassle-free, which is helping Brazil’s Car Finance Market grow.

Rising Demand for Electric Vehicles: Due to the need to satisfy future energy and pollution demands, electric vehicles (EVs) have become more and more common throughout Brazil in recent years. It offers a way to improve energy efficiency while reducing pollution and other greenhouse gas emissions. The demand for environmentally friendly transportation is one of the main factors for this. The market for electric vehicles is expanding and becoming a significant driver for the Brazil Car Finance Industry.

Analysts at Ken Research in their latest publication “Brazil Car Finance Market Outlook to 2027F – By Vehicle Type (New Car, Used Car), By Type of Car (Hatchbacks, Sedans, Luxury Cars, Sports Utility Vehicle), By Provider (Banks, NBFCs, OEMs and Others)” observed that Brazil Car Finance Market has shown considerable growth in the last five years. In the upcoming years, it is predicted to expand more rapidly due to emergence of online car finance applications, rising demand for electric vehicles, the adoption of digital technologies for car financing and increasing vehicle prices. The Car Finance Market in Brazil is expected to grow at ~% CAGR over the forecasted period 2022P-2027F.

Key Segments Covered in the report