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Report Description

Report Description

Forecast Period

2024-2028

Market Size (2022)

USD17.34 Billion

CAGR (2023-2028)

6.70%

Fastest Growing Segment

NBFCs

Largest Market

Passenger Cars


The Japan automotive loan market is witnessing robust growth owing to the growing number of cars due to the replacement of old models with modern models to improve the driving experience. As a result, the demand for auto loans in Japan is expected to increase throughout the anticipated period due to factors such as the increase in transportation-related industrialization activities and the increased number of customers seeking auto loans. Many dealers, brokers, or even showrooms will offer an automotive loan scheme when an individual goes to the car showroom. These schemes aim to help them pay some percentage of the car value in advance and left have to pay them later monthly, which is expected to drive the Japan automotive loan market.

The automotive loan is provided by various financing companies, which helps buy a vehicle. Generally, the lender lends the money, and the borrower must return the loan in equated monthly installments (EMIs) over a defined tenure at a specific interest rate. The automotive loan is primarily provided through banks, NBFCs (non-banking financial company, OEM (original equipment manufacturer), and others (fintech companies) over a specified tenure and interest rate.

According to Japan Automotive Dealers Association and Japan Light Motor Vehicle and Motorcycle Association, sales in Japan in November 2022 increased by 7% to 377,079 units. According to the Japan Automobile Dealers Association (JADA), 3,675,650 new cars were sold in 2021, and 40.5% were electric vehicles.


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Digitalization of Financial Institutions Fueling the Market Growth

In the future, Japan's rate of digitalization is anticipated to increase, leading to entrance of offline and online enterprises into the car loan market. Additionally, with the rise in fintech platforms, automotive loans are simplified by enabling end-to-end digital loan approval, processing, and payment. The fintech industry is radically changing the finance industry's landscape worldwide in several ways. For instance, recently, a loan intermediary service for SMEs named the Mizuho Smart Business Loan was introduced. A megabank financing service completed the application and contracted online for the first time. The loan application process has been considerably simplified and loans can now be obtained within two business days. Therefore, the emergence of digitalization in the financial institution is expected to fuel the automotive loan market in Japan.

Expansion of Passenger Cars Fuels Market Growth

The car sales in Japan is rising, and the growing trend of vehicles in Japan has a led to a significant demand for new vehicles. Moreover, light vehicles are more prevalent in Japan as they are more fuel efficient due to their lightweight. Therefore, lightweight vehicles with small engines are relatively common in Japan. The popularity of light automobiles grew over the ensuing decades, and they today account for almost half of all household cars in Japan. As the average price of passenger cars is USD 7500, some people need help to purchase these vehicles in cash. Hence, people find an auto loan helpful as a method to buy a vehicle that helps them pay a small amount of money. The rest will be paid later by monthly payments with an interest rate driving in Japan market during the forecast period.

Rising Demand of Commercial Electric Vehicles Fuels Market Growth

In Japan, electric vehicles are getting attractive interest rate, specifically in commercial delivery. Since they don't require gasoline, electric vehicles continue to gain popularity as environmentally beneficial transportation. The adoption of electric vehicles for logistics organizations is rising. For instance, the "Minicab Mieve" small-commercial EV from Mitsubishi Motors is gaining consumer interest. However, they are typically more expensive than vehicles that run on gasoline. People may be hesitant to buy an electric vehicle even if they are interested because of its high price. Therefore, companies are offering low-interest rates on electric vehicles and various others, which is expected to drive Japan's automotive loan industry during the forecast period.

Market Segmentation

The Japan automotive loan market is segmented on the basis of vehicle type, provider type, percentage of amount sanctioned, and tenure. The market is divided into two-wheeler, passenger cars, and commercial vehicles based on vehicle type. Based on the provider type, the market is segmented into banks, NBFCs (non-banking financial company), OEM (original equipment manufacturers), and others (fintech companies). Based on percentage of the amount sanctioned, the market is segmented into less than 25%, 25-50%, 51-75%, and more than 75%. By tenure, the market is segmented into less than 3 years, 3-5 years, and more than 5 years.

Company Profiles

SURUGA bank Ltd, Orient Corporation, Bank of Kyoto, Ltd, Maruhan Japan Bank Lao Co., Ltd, The Senshu Ikeda Bank, Ltd, Toyota Financial Services Corporation, The Kinokuni Shinkin Bank, Sompo Japan Insurance Inc., The 77 Bank, Ltd., AK Kogyo Co., Ltd.are among the major players driving the growth of the Japan Automotive Loan Market.

Attribute

Details

Base Year

2022

Historical Years

2018 – 2021

Estimated Year

2023

Forecast Period

2024 – 2028

Quantitative Units

Revenue in USD Billion and CAGR for 2018-2022 and 2023-2028

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

Vehicle Type

Provider Type

Percentage of Amount Sanctioned

Tenure

Region

Regional Scope

Hokkaido & Tohoku, Chubu, Chugoku, Kyushu and Rest of Japan.

Key Companies Profiled

SURUGA bank Ltd, Orient Corporation, Bank of Kyoto, Ltd, MARUHAN Japan Bank Lao Co., Ltd, The Senshu Ikeda Bank, Ltd, Toyota Financial Services Corporation, The Kinokuni Shinkin Bank, Sompo Japan Insurance Inc., The 77 Bank, Ltd, AK Kogyo Co., Ltd.

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail of customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)


Report Scope:

In this report, the Japan Automotive Loan market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • Japan Automotive Loan Market, By Vehicle Type:
    • Two-Wheeler
    • Passenger Car
    • Commercial Vehicle
  • Japan Automotive Loan Market, By Provider Type:
    • Banks
    • NBFCs (Non-Banking Financial Company
    • OEM (Original Equipment Manufacturer)
    • Others
  • Japan Automotive Loan Market, By Percentage of Amount Sanctioned:
    • Less than 25%
    • 25-50%
    • 51-75%
    • More than 75%
  • Japan Automotive Loan Market, By Tenure:
    • Less than 3 Years
    • 3-5 Years
    • More than 5 Years
  • Japan Automotive Loan Market, By Region:

o   Hokkaido & Tohoku

o   Chubu

o   Chugoku

o   Kyushu

o   Rest of Japan

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Japan automotive loan market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

It is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary      

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Voice of Customer Analysis (B2C Model Analysis)

4.1.  Sample Size Determination

4.2.  Respondent Demographics

4.2.1.    By Gender

4.2.2.    By Age

4.2.3.    By Occupation

4.3.  Brand Awareness

4.4.  Factors Influencing Loan Availing Decision

4.5.  Sources of Information

4.6.  Challenges Faced After Purchase

5.    Japan Automotive Loan Market Outlook

5.1.  Market Size & Forecast

5.1.1.    By Value

5.2.  Market Share & Forecast

5.2.1.    By Vehicle Type Market Share Analysis [Two-Wheeler, Passenger Car, Commercial Vehicle]

5.2.2.    By Provider Type Market Share Analysis [Banks, NBFCs (Non-Banking Financial Company, OEM (Original Equipment Manufacturer), Others (Fintech Companies)]

5.2.3.    By Percentage of Amount Sanctioned Market Share [Less than 25%, 25-50%, 51-75%, More than 75%]

5.2.4.    By Tenure Market Share [Less than 3 Years, 3-5 Years, More than 5 Years

5.2.5.    By Regional Market Share Analysis

5.2.6.    By Top 5 Companies Market Share Analysis, Others (2022)

5.3.  Japan Automotive Loan Market Mapping & Opportunity Assessment

5.3.1.    By Vehicle Type Market Mapping & Opportunity Assessment

5.3.2.    By Provider Type Market Mapping & Opportunity Assessment

5.3.3.    By Percentage of Amount Sanctioned Market Mapping & Opportunity Assessment

5.3.4.    By Tenure Market Mapping & Opportunity Assessment

5.3.5.    By Region Market Mapping & Opportunity Assessment

6.    Japan Two-Wheeler Automotive Loan Market Outlook

6.1.  Market Size & Forecast        

6.1.1.    By Value

6.2.  Market Share & Forecast

6.2.1.    By Provider Type Market Share Analysis

6.2.2.    By Percentage of Amount Sanctioned Market Share Analysis

6.2.3.    By Tenure Market Share Analysis

7.    Japan Passenger Car Automotive Loan Market Outlook

7.1.  Market Size & Forecast        

7.1.1.    By Value

7.2.  Market Share & Forecast

7.2.1.    By Provider Type Market Share Analysis

7.2.2.    By Percentage of Amount Sanctioned Market Share Analysis

7.2.3.    By Tenure Market Share Analysis

8.    Japan Commercial Vehicle Automotive Loan Market Outlook

8.1.  Market Size & Forecast        

8.1.1.    By Value

8.2.  Market Share & Forecast

8.2.1.    By Provider Type Market Share Analysis

8.2.2.    By Percentage of Amount Sanctioned Market Share Analysis

8.2.3.    By Tenure Market Share Analysis

9.    Market Dynamics

9.1.  Drivers

9.1.1.    Rising Demand of Loans for Commercial Electric Vehicles

9.1.2.    Expansion of Loans for Passenger Cars

9.1.3.    Growing Purchasing Power of Middle Class Economy

9.2.  Challenges

9.2.1.    Increasing Interest Rate Competition

9.2.2.    Bad Credit History

10.  Market Trends & Developments

10.1.             Reduction in Interest Rate for of Automotive Loan

10.2.             Digitalization of Financial Institution

10.3.             Growing Sales of Cars

10.4.             Rise in Fintech Companies

10.5.             Surging Demand from Commercial Industries

11.  SWOT Analysis

11.1.             Strengths

11.2.             Weaknesses

11.3.             Opportunities

11.4.             Threats

12.  Policy & Regulatory Landscape

13.  Japan Economic Profile

14.  Competitive Landscape

14.1.             Company Profiles

14.1.1. SURUGA bank Ltd

14.1.1.1.     Company Details

14.1.1.2.     Product & Services

14.1.1.3.     Financials (As Reported)

14.1.1.4.     Key Market Focus & Geographical Presence

14.1.1.5.     Recent Developments

14.1.1.6.     Key Management Personnel

14.1.2. Orient Corporation

14.1.2.1.     Company Details

14.1.2.2.     Product & Services

14.1.2.3.     Financials (As Reported)

14.1.2.4.     Key Market Focus & Geographical Presence

14.1.2.5.     Recent Developments

14.1.2.6.     Key Management Personnel

14.1.3. Bank of Kyoto, Ltd

14.1.3.1.     Company Details

14.1.3.2.     Product & Services

14.1.3.3.     Financials (As Reported)

14.1.3.4.     Key Market Focus & Geographical Presence

14.1.3.5.     Recent Developments

14.1.3.6.     Key Management Personnel

14.1.4. MARUHAN Japan Bank Lao Co., Ltd

14.1.4.1.     Company Details

14.1.4.2.     Product & Services

14.1.4.3.     Financials (As Reported)

14.1.4.4.     Key Market Focus & Geographical Presence

14.1.4.5.     Recent Developments

14.1.4.6.     Key Management Personnel

14.1.5. ) The Senshu Ikeda Bank, Ltd

14.1.5.1.     Company Details

14.1.5.2.     Company Details

14.1.5.3.     Product & Services

14.1.5.4.     Financials (As Reported)

14.1.5.5.     Key Market Focus & Geographical Presence

14.1.5.6.     Recent Developments

14.1.5.7.     Key Management Personnel

14.1.6. Toyota Financial Services Corporation

14.1.6.1.     Company Details

14.1.6.2.     Product & Services

14.1.6.3.     Financials (As Reported)

14.1.6.4.     Key Market Focus & Geographical Presence

14.1.6.5.     Recent Developments

14.1.6.6.     Key Management Personnel

14.1.7. The Kinokuni Shinkin Bank

14.1.7.1.     Company Details

14.1.7.2.     Product & Services

14.1.7.3.     Financials (As Reported)

14.1.7.4.     Key Market Focus & Geographical Presence

14.1.7.5.     Recent Developments

14.1.7.6.     Key Management Personnel

14.1.8. Sompo Japan Insurance Inc.

14.1.8.1.     Company Details

14.1.8.2.     Product & Services

14.1.8.3.     Financials (As Reported)

14.1.8.4.     Key Market Focus & Geographical Presence

14.1.8.5.     Recent Developments

14.1.8.6.     Key Management Personnel

14.1.9. The 77 bank, Ltd

14.1.9.1.     Company Details

14.1.9.2.     Product & Services

14.1.9.3.     Financials (As Reported)

14.1.9.4.     Key Market Focus & Geographical Presence

14.1.9.5.     Recent Developments

14.1.9.6.     Key Management Personnel

14.1.10.               AK Kogyo Co., Ltd.

14.1.10.1.   Company Details

14.1.10.2.   Product & Services

14.1.10.3.   Financials (As Reported)

14.1.10.4.   Key Market Focus & Geographical Presence

14.1.10.5.   Recent Developments

14.1.10.6.   Key Management Personnel

15.  Strategic Recommendations/Action Plan

15.1.             Key Focus Areas

15.2.             Target Vehicle Type

15.3.             Target Provider Type

16.  About Us & Disclaimer

(Note: The companies list can be customized based on the client requirements.)

Figures and Tables

Frequently asked questions

Frequently asked questions

Key factors driving the growth of Japan's Automotive Loan Market include the growing digital penetration, rising sales of passenger cars, and low-interest rates on car loans in Japan, etc.

According to the Japan Automobile Manufacturers Association's "Passenger Car Market Trend Survey, about 30% to 40% of people in Japan buy cars with loans.

The growing trend in the automotive industry of producing renewable and eco-friendly technology that will be integrated into cars in the automotive industry in Japan.

Some key players operating in the Japan automotive loan include SURUGA bank Ltd, Orient Corporation, Bank of Kyoto, Ltd, Maruhan Japan Bank Lao Co., Ltd, The Senshu Ikeda Bank, Ltd, Toyota Financial Services Corporation, The Kinokuni Shinkin Bank, Sompo Japan Insurance Inc., The 77 Bank, Ltd, AK Kogyo Co., Ltd.

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