Report Description

Saudi Arabia automotive loan market is expected to witness robust growth over the duration of the forecast period owing to the population's growing awareness regarding automotive loans, customer preferences and likings, and the implementation of favorable government laws and regulations. Moreover, the increasing prices of automobiles has made owning a vehicle very challenging, which is driving the Saudi Arabia automotive loan market. As a result, it stands to reason that more people are using automotive loans to finance the purchase of new vehicles, which is expected to fuel the expansion of automotive loans market in Saudi Arabia during the forecast period.

Automotive loans are loans given to customers who want to own a vehicle through funds provided by banks and financing companies in Saudi Arabia, provided that the customer pays the amount of the loan and the loan costs in convenient monthly instalments for a certain period of time. Additionally, automotive loan is primarily provided through banks, NBFCs (non-banking financial companies, OEM (original equipment manufacturer), others (fintech companies) over a specified tenure and interest rate.

According to International Trade Administration data, among Middle East/North Africa (MENA), Saudi Arabia is the leading regional market with 36% share of electric vehicles. In 2020, Saudi Arabia accounted for over 52% of the vehicles sold in the GCC and 35% in the MENA region. According to the latest reports of Saudi Statistics Bureau, the number of cars in Saudi Arabia exceeded twelve million and by mid-2022, the population of the Kingdom of Saudi Arabia have surpassed 35 million people. As a result, it may be stated that every third Saudi citizen owns a vehicle and thus with the rising share of people owning a car, is expected to drive the automotive loan market in Saudi Arabia.

Digitalization of Financial Institution is Fueling the Market Growth

Automotive loan industries are progressively adopting more advanced technical developments to boost operational profitability along with client satisfaction. Moreover, fintech companies are new competitors to traditional financial services in the Saudi Arabia auto lending sector that are boosting the demand for the automotive loan industry in Saudi Arabia. As the number of private fintech companies in the Saudi Arabia automotive finance market is increasing, more people are shifting from the government to private automotive loan industries.. Therefore, the traction towards online platforms has led to banks, finance companies and car brands listing their fleet online along with the option to start loan applications online is expected to drive the growth of Saudi Arabia automotive loans market during the forecast period.

Surging Demand of Vehicles in Saudi Arabia Fuels Market Growth

The demand for vehicles is increasing in Saudi Arabia with the increased demand for connected vehicles and ongoing digital transformation. Additionally, the entrance of female drivers to the market is anticipated to boost the number of vehicles sold overall, which will have a positive impact on the automotive loan market in Saudi Arabia. In Saudi Arabia, two-wheelers are considered a luxury item rather than a means of transportation, and four-wheelers are preferred more often. As the prices of cars are increasing, the consumers are expected to avail of automotive loans to make the purchase, which is expected to drive the Saudi Arabia automotive loan market..


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Benefits of Automotive Loan Fuels Market Growth

The automotive loan is one of the most popular loan types in Saudi Arabia as people prefer to buy a vehicle with an automotive loan as it doesn’t require any guarantor. Additionally, one can obtain an automotive loan the same day as applying if all necessary bank documents are completed. Companies are offering financing up to a maximum percent of the estimated value of the car with a competitive interest rate. The automotive loan makes it simple for customers to get the vehicle they want and is the best pick for those who would like to purchase a vehicle with monthly payments. Thus, the automotive loan market has been driven by the benefits of the automotive loan.

Market Segmentation

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

Company Profiles

Al Rajhi Banking & Investment Corp., Riyad Bank, National Commercial Bank, Abdul Latif Jameel United Finance Company, The Saudi Investment Bank, Arab National Bank, Saudi Finance Company, AL AMTHAL Finance Company, Alinma Bank, and Emirates NBD PJSC are some of the major market players that are driving the growth of the Saudi Arabia 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

Western, Central & Northern, Eastern, Southern

Key Companies Profiled

Al Rajhi Banking & Investment Corp., Riyad Bank, National Commercial Bank, Abdul Latif Jameel United Finance Company, The Saudi Investment Bank, Arab National Bank, Saudi Finance Company, AL AMTHAL Finance Company, Alinma Bank, Emirates NBD PJSC

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 Saudi Arabia automotive loan market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

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

o    Western

o    Central & Northern

o    Eastern

o    Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Saudi Arabia 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).

Saudi Arabia Automotive Loan market 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

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

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

5.    Saudi Arabia 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 companies, Others]

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

5.2.5.1.         Western Market Share Analysis

5.2.5.2.         Central & Northern Market Share Analysis

5.2.5.3.         Eastern Market Share Analysis

5.2.5.4.         Southern Market Share Analysis

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

5.3.  Saudi Arabia Automotive Loan Market Mapping & Opportunity Assessment

5.3.1.     By Automotive 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.    Saudi Arabia 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.    Saudi Arabia 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.    Saudi Arabia 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 Passenger Cars

9.1.2.     Expansion of Automotive Loan for Vehicles

9.1.3.     High Prices of Vehicles

9.2.  Challenges

9.2.1.     Increasing Interest Rate Competition

9.2.2.     Bad Credit History

10.  Impact of COVID-19 on Saudi Arabia Automotive Loan Market

10.1.              Impact Assessment Model       

10.1.1.  Key Segments Impacted

10.1.2.  Key Regions Impacted

10.1.3.  Key Provider Type Impacted

11.  Market Trends & Developments

11.1.              Surging Demand of Vehicles in Saudi Arabia

11.2.              Digitalization of Financial Institution

11.3.              Rise in Fintech Companies

11.4.              Surging Demand from Commercial Industries

11.5.              Competitive Interest Rate on Automotive Loan

12.  Porter’s Five Forces Model

12.1.              Competitive Rivalry

12.2.              Bargaining Power of Buyers

12.3.              Bargaining Power of Suppliers

12.4.              Threat of New Entrants

12.5.              Threat of Substitutes

13.  SWOT Analysis

13.1.              Strengths

13.2.              Weaknesses

13.3.              Opportunities

13.4.              Threats

14.  Policy & Regulatory Landscape

15.  Saudi Arabia Economic Profile

16.  Competitive Landscape

16.1.              Company Profiles

16.1.1.  Al Rajhi Banking & Investment Corp.

16.1.1.1.      Company Details

16.1.1.2.      Products

16.1.1.3.      Financials (As Per Availability)

16.1.1.4.      Key Market Focus & Geographical Presence

16.1.1.5.      Recent Developments

16.1.1.6.      Key Management Personnel

16.1.2.  Riyad Bank

16.1.2.1.      Company Details

16.1.2.2.      Products

16.1.2.3.      Financials (As Per Availability)

16.1.2.4.      Key Market Focus & Geographical Presence

16.1.2.5.      Recent Developments

16.1.2.6.      Key Management Personnel

16.1.3.  National Commercial Bank

16.1.3.1.      Company Details

16.1.3.2.      Products

16.1.3.3.      Financials (As Per Availability)

16.1.3.4.      Key Market Focus & Geographical Presence

16.1.3.5.      Recent Developments

16.1.3.6.      Key Management Personnel

16.1.4.  Abdul Latif Jameel United Finance Company

16.1.4.1.      Company Details

16.1.4.2.      Products

16.1.4.3.      Financials (As Per Availability)

16.1.4.4.      Key Market Focus & Geographical Presence

16.1.4.5.      Recent Developments

16.1.4.6.      Key Management Personnel

16.1.5.  The Saudi Investment Bank

16.1.5.1.      Company Details

16.1.5.2.      Products

16.1.5.3.      Financials (As Per Availability)

16.1.5.4.      Key Market Focus & Geographical Presence

16.1.5.5.      Recent Developments

16.1.5.6.      Key Management Personnel

16.1.6.  Arab National Bank

16.1.6.1.      Company Details

16.1.6.2.      Products

16.1.6.3.      Financials (As Per Availability)

16.1.6.4.      Key Market Focus & Geographical Presence

16.1.6.5.      Recent Developments

16.1.6.6.      Key Management Personnel

16.1.7.  Saudi Finance Company

16.1.7.1.      Company Details

16.1.7.2.      Products

16.1.7.3.      Financials (As Per Availability)

16.1.7.4.      Key Market Focus & Geographical Presence

16.1.7.5.      Recent Developments

16.1.7.6.      Key Management Personnel

16.1.8.  AL AMTHAL Finance Company

16.1.8.1.      Company Details

16.1.8.2.      Products

16.1.8.3.      Financials (As Per Availability)

16.1.8.4.      Key Market Focus & Geographical Presence

16.1.8.5.      Recent Developments

16.1.8.6.      Key Management Personnel

16.1.9.   Alinma Bank

16.1.9.1.      Company Details

16.1.9.2.      Products

16.1.9.3.      Financials (As Per Availability)

16.1.9.4.      Key Market Focus & Geographical Presence

16.1.9.5.      Recent Developments

16.1.9.6.      Key Management Personnel

16.1.10.                Emirates NBD PJSC

16.1.10.1.    Company Details

16.1.10.2.    Products

16.1.10.3.    Financials (As Per Availability)

16.1.10.4.    Key Market Focus & Geographical Presence

16.1.10.5.    Recent Developments

16.1.10.6.    Key Management Personnel

17.  Strategic Recommendations/Action Plan

17.1.              Key Focus Areas

17.2.              Target Vehicle Type

17.3.              Target Provider Type

18.   About Us & Disclaimer

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

Figures and Tables

Frequently asked questions

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Key factors which are driving the Saudi Arabia Automotive Loan Market growth include the expansion of car sales, low-interest rates on the car loan, and digitalization of financial institutions in Saudi Arabia, etc.

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On the basis of vehicle type, the Saudi Arabia Automotive Loan Market is segmented into two wheeler, passenger cars, commercial vehicle. Among which, passenger cars are dominating as people prefer to buy cars and even the low income category commutes using a car.

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10–15 years back, captive financing dominated the Saudi industry. After this, banks and finance companies recognized the market's potential and entered it. Therefore, banks are the leading provider of automotive loans.

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Some key players operating in the Saudi Arabia Automotive Loan Market include Al Rajhi Banking & Investment Corp., Riyad Bank, National Commercial Bank, Abdul Latif Jameel United Finance Company, The Saudi Investment Bank, Arab National Bank, Saudi Finance Company, AL AMTHAL Finance Company, Alinma Bank, and Emirates NBD PJSC.

profile

Srishti Verma

Business Consultant
Press Release

Saudi Arabia Automotive Loan Market to be Dominated by Banks During the Forecast Period

Feb, 2023

An increase in car sales, expansion of digitalization along with the entrance of fintech companies in automotive loans are the leading factors expected to drive the Saudi Arabia Automotive Loan Marke