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Asia-Pacific Used Car Financing Market Size (2024 - 2029)

The Asia-Pacific used car financing market is projected to experience significant growth over the next five years, driven by a recovery from the pandemic-induced decline. The market's expansion is supported by a diverse range of financing options offered by various players, including non-banking financial companies and private banks, particularly in South Asian countries. The fragmented used car market, with numerous original equipment manufacturers and auction houses, enhances the availability of financing opportunities. This growth trajectory is further bolstered by the substantial size of the used automobile market in countries like India, which surpasses that of new cars, indicating a robust demand for financing solutions in the region.

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Market Size of Asia-Pacific Used Car Financing Industry

Asia-Pacific Used Car Financing Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 5.74 %
Market Concentration High

Major Players

Asia-Pacific Used Car Financing Market Major Players

*Disclaimer: Major Players sorted in no particular order

APAC Used Car Financing Market Analysis

The Asia-Pacific used car financing market is valued at USD 675.62 billion and is expected to reach USD 935.12 billion over the coming five years, with a combined CAGR of 5.74% during the same period.

During the COVID-19 pandemic, Asia-Pacific used car financing market witnessed a steady decline owing to the spread of the virus, and people avoided purchasing cars amid an economic crisis. In addition, markets, showrooms, and auction events were closed down as the regional government imposed strict lockdown measures. Although, after Q1 2021, everything was again on track, with the used car financing business achieving a growth phase as well.

Asia-Pacific provided an equivalent pace to the used car financing business with the presence of sparse players across South Asian countries, including small NBFC and OEM, and private banks offering subsequent options for getting used car financing. The used car market across these countries is fragmented, with several OEMs, auction houses, and pre-owned dealers striving to expand their fleet size to offer their clients a wide pool of financing opportunities. The majority of consumers who choose to buy a car with some sort of financial aid often seem to rely upon the financing services offered to them. This fact can be merely attributed to used automobile financing options which are currently available at the cost of around 13-15%, which presents a huge potential for both manufacturers and financial institutions. In a country like India, the used automobile market is currently about 1.3 times larger than the new car market, which will probably present opportunities for the sector.

Considering these potential factors, demand for used car financing in Asia-Pacific is expected to remain on the positive side of the market over the coming years.

APAC Used Car Financing Industry Segmentation

Used financing is the service that offers used cars to consumers at much-lowered prices at affordable EMI installments. These installments are divided based on the loan amount and tenure with some fixed rate of interest.

The Asia-Pacific used car financing market is segmented by bodystyle type (Hatchbacks, Sedans, Sports Utility Vehicle, and Multi-purpose Vehicle), financier (OEM, Banks, and Non-Banking Financing Companies), and country (China, India, Japan, South Korea, Indonesia, and the Rest of Asia-Pacific).

By Bodystyle Type
Hachbacks
Sedan
Sports Utility vehicles (SUV)
Multi-Purpose Vehicle
By Financier
OEM
Banks
Non-Banking Financial Companies
By Country
China
India
Japan
South Korea
Indonesia
Rest of Asia-Pacific
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Asia-Pacific Used Car Financing Market Size Summary

The Asia-Pacific used car financing market is experiencing a robust growth trajectory, driven by a combination of factors such as increased affordability, the rise of digitization, and the availability of diverse financing options. The market, which faced challenges during the COVID-19 pandemic due to lockdowns and economic uncertainties, has rebounded strongly since early 2021. The presence of numerous players, including small non-banking financial companies (NBFCs), original equipment manufacturers (OEMs), and private banks, has contributed to a fragmented yet competitive landscape. This fragmentation is further enhanced by the strategic efforts of various stakeholders, including auction houses and pre-owned dealers, to expand their offerings and cater to the growing demand for used car financing. The market's potential is underscored by the significant size of the used car market in countries like India, where it surpasses the new car market, presenting lucrative opportunities for both manufacturers and financial institutions.

Hatchbacks have emerged as a dominant segment within the used car market, maintaining their popularity due to factors such as lower taxation and consistent performance. The demand for pre-owned hatchbacks remains strong, supported by major international automakers who have introduced compact car models to capitalize on this segment's long-term potential. The market's growth is further bolstered by the increasing digitization of the financing process, which streamlines operations and enhances customer experiences through digital retailing and e-signatures. Key players in the market, including Maruti Suzuki, Tata Motors, and luxury car manufacturers like Audi, are actively engaging in partnerships and offering attractive financing options to boost sales. The market's expansion is also reflected in the strategic alliances formed by platforms like CarTrade Tech, which collaborate with financial institutions to provide seamless financing solutions for used car buyers.

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Asia-Pacific Used Car Financing Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porters 5 Force Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in Value USD Billion)

    1. 2.1 By Bodystyle Type

      1. 2.1.1 Hachbacks

      2. 2.1.2 Sedan

      3. 2.1.3 Sports Utility vehicles (SUV)

      4. 2.1.4 Multi-Purpose Vehicle

    2. 2.2 By Financier

      1. 2.2.1 OEM

      2. 2.2.2 Banks

      3. 2.2.3 Non-Banking Financial Companies

    3. 2.3 By Country

      1. 2.3.1 China

      2. 2.3.2 India

      3. 2.3.3 Japan

      4. 2.3.4 South Korea

      5. 2.3.5 Indonesia

      6. 2.3.6 Rest of Asia-Pacific

Asia-Pacific Used Car Financing Market Size FAQs

The Asia-Pacific Used Car Financing Market is projected to register a CAGR of 5.74% during the forecast period (2024-2029)

Bajaj Finserv, The Bank of China, Sundaram Finance Ltd, Cholamandalam Investment and Finance Company Limited and HDFC Bank Ltd are the major companies operating in the Asia-Pacific Used Car Financing Market.

Asia-Pacific Used Car Financing Report Snapshots

Asia-Pacific Used Car Financing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)