Qatar Auto Finance Market Outlook to 2023
By Banks, Non Banking Financial Companies and Captives, By New and Used Vehicles Financed, By Type of Vehicle Financed (Motor Bikes, Cars and Light Commercial Vehicles) and By Loan Time Period
October 2021
119
About the Report
About the Report
Click here for updated report on Qatar Auto Finance Market Outlook to 2026F
The report titled “Qatar Auto Finance Market Outlook to 2023 –By Banks, Non Banking Financial Companies and Captives, By New and Used Vehicles Financed, By Type of Vehicle Financed (Motor Bikes, Cars and Light Commercial Vehicles) and By Loan Time Period”provides a comprehensive analysis of the Qatar vehicle finance market including market evolution, market overview, market genesis, market size and current and future market segmentations. Extensive focus has been placed in quantifying the auto loans outstanding and segment-wise number of vehicles financed. The report covers aspects such as market segmentation (by loan tenure, type of vehicles, new and used vehicles and type of lending institutions), customer perspective in the market and snapshot on Digitalization of Auto Finance & the way forward. Competitive landscape of major lenders including Qatar National Bank, Commercial Bank, Qatar Islamic International Bank, Doha Bank, First Finance Co., Al Jazeera Finance, Toyota Financial Services. The report also covers future industry analysis (by credit disbursed and auto loan outstanding), future market segmentation, PESTEL Analysis, growth opportunities, up-coming business models, government regulations and analyst recommendations.
Qatar Auto Finance Market Overview and Size:
The Vehicle Finance Market in Qatar witnessed a slight decline during the period 2014-2018, owing to decreasing new vehicle sales over the same period. The market is in growth stage with vehicle sales beginning to follow a normal growth trend after continued exponential growth till 2014, followed by a rapid decline after that. Trends in the market were largely stimulated by decline in oil prices after 2014 and blockade led by Saudi & a few other neighboring gulf countries against Qatar. These trends led to decline of new vehicle sales in Qatar but spurred the growth of used vehicles, especially in passenger cars segment in the country.
Qatar Vehicle Finance Market Segmentation:
By New and Used Vehicles: The Vehicle Finance Market in Qatar is segmented into New and Used Vehicle finance with New Vehicle finance holding a major share of the total credit disbursed in 2018. Even though, the number of new vehicle sales was quite less in comparison to used vehicles but the higher price of new vehicles sold was one of the major reasons for higher credit disbursement share for this segment.
By Lender Type: The primary lending institutions in the Qatar Auto Finance market include Banks, Captives & Non-Banking Financial Companies. Banks hold a majority share in the market owing to their reliable lending reputation and expansive network of branches across the country. In used vehicle finance, borrowers face greater difficulties in getting the required finance, penetration rate for used vehicles is much lower than the global average of 50.0%. Captives and NBFCs are struggled in gaining traction.
By Type of Vehicle (Bikes, Cars and Light Commercial Vehicles): Cars accounted for a major share in the number of vehicles financed in the market owing to high volume of SUVs on Qatar roads , while the share of Light Commercial is lower than Cars and higher than bikes. This was due to low preference of bikes by population in Qatar due to sandy and hot terrain.
By Time Period of Loan for New and Used Vehicles: Vehicles are financed for different tenures in the market, with the share of loans lasting for 3-4 years the highest. The overall trend in the market is the lengthening of loan terms with car buyers preferring to make payments over a longer period of time to distribute their financial burden evenly over a longer period. Borrowers provide raised interest rates for longer period loans with lower monthly payments. The trend towards longer loan terms is evident both in New and Used Vehicle finance with borrowers opting for longer loan terms years progressively.
Competitive Landscape in the Qatar Auto Finance Market:
The competition in the market is concentrated in nature. The major lending institution types in the market are Banks, Captives & Non-Banking Financial Companies. Banks hold a majority share in the lending space for new vehicles whereas NBFCs & Captives are expected to gain the used vehicle segment in the future. Major parameters basis which players compete are interest rate and down payment ratio, loan tenure, digitalization and ease of transaction, customer reach or branch network, service portfolio and others.
Qatar Auto Finance Market Future Outlook and Projections:
Over the forecast period, Qatar auto finance market is expected to grow at a positive rate with estimated increase in sales of new and used vehicles in the country owing to emergence of new businesses, increasing personal disposable income and expected increase in tourist inflow. Existing players are expected to move towards digitalization with focus on streamlining the financing process for both Qataris and expats. Multiple fin-tech startups are also expected to enter the landscape which could pose a threat to conventional finance companies and banks. These start ups would primarily work towards developing products to augment the digitalization of the banking sector. This includes digital payments, online lending, online aggregation and remote banking facilities which will make customer lending process more simplified, further facilitating the car finance market in the country. Banks and Captives are expected to focus and grow their share in the used cars segment, also new NBFCs are expected to enter the competitive landscape to cater to the increasing demand of vehicle financing in the country.
Key Segments Covered
By New and Used Vehicle
- New Vehicle
- Used Vehicle
By Type of Vehicle
- Motor Bikes
- Cars
- Light Commercial Vehicles
By Lender Category
- Banks
- Captives
- Non-Banking Financial Companies
By Loan Tenure between New and Pre-Owned Motor Vehicles
- One Year
- Two Years
- Three Years
- Four Years
- Five Years or More
Key Target Audience
- Existing Auto Finance Companies
- Banks
- Non-Banking Financial Companies
- New Market Entrants
- Government Organizations
- Investors
- Automobile Associations
- Automobile OEMs
Time Period Captured in the Report:
- Historical Period: 2014-2018
- Forecast Period: 2019F-2023F
Key Companies Covered:
- Banks
- Qatar National Bank
- Doha Bank
- Commercial Bank
- International Bank of Qatar
- Qatar Islamic International Bank
- Qatar Islamic Bank
- Masraf Al Rayan
- Non-Banking Financial Companies
- First Finance Company (Barwa Bank)
- Al Jazeera Finance
Key Topics Covered in the Report
Executive Summary
Research Methodology
Qatar Vehicle Finance Market Overview and Genesis
Qatar Vehicle Finance Market Size, 2014-2018
Qatar Vehicle Finance Market Segmentation, 2014-2018
Major Trends and Development in Qatar Vehicle Finance Market
Regulatory Framework in the Qatar Vehicle Finance Market
A Snapshot on Digitalization of Auto Finance in Qatar
Customer Perspective in Qatar Vehicle Finance Market
Competitive Landscape containing Company Profiles in the Qatar Auto Finance Market
Qatar Vehicle Finance Market Future Outlook and Projections, 2019F-2023F
Analyst Recommendations for the Qatar Auto Finance Market
Products
Products
Key Segments Covered
By New and Used Vehicle
- New Vehicle
- Used Vehicle
By Type of Vehicle
- Motor Bikes
- Cars
- Light Commercial Vehicles
By Lender Category
- Banks
- Captives
- Non-Banking Financial Companies
By Loan Tenure between New and Pre-Owned Motor Vehicles
- One Year
- Two Years
- Three Years
- Four Years
- Five Years or More
Key Target Audience
- Existing Auto Finance Companies
- Banks
- Non-Banking Financial Companies
- New Market Entrants
- Government Organizations
- Investors
- Automobile Associations
- Automobile OEMs
Time Period Captured in the Report:
- Historical Period: 2014-2018
- Forecast Period: 2019F-2023F
Companies
Companies Covered:
- Banks
- Qatar National Bank
- Doha Bank
- Commercial Bank
- International Bank of Qatar
- Qatar Islamic International Bank
- Qatar Islamic Bank
- Masraf Al Rayan
- Non-Banking Financial Companies
- First Finance Company (Barwa Bank)
- Al Jazeera Finance
Table of Contents
Table of Contents
1. Executive Summary
2. Research Methodology
2.1. Market Definitions
2.2. Abbreviations
2.3. Market Size and Modeling
3. Operating Model Analysis for Qatar Auto Finance Market (Inter-Entity Relationship and Margin Analysis)
3.1. Direct Lending
3.2. Indirect Lending
4. Qatar Vehicle Finance Market Genesis and Overview
4.1. Market Overview, Genesis and Milestones
5. Type of Car Financing Channels in Qatar
5.1. On the Basis of Types of Institution
5.1.1. Banks
5.1.2. Non Banking Financial Company
5.1.3. OEM Captives
5.2. By Types of Financing
5.2.1. Conventional Financing
5.2.2. Islamic Financing
6. Qatar Auto Finance Market Size, 2014-2018
7. Qatar Auto Finance Market Segmentation, 2013-2018
7.1. By New and Used Vehicle, 2014-2018
7.2. By Type of Vehicle, 2014-2018
7.3. By Tenure of Loan, 2014-2018
7.4. By Finance Source (Banks, Captives and Non-Banking Financial Companies) – Total Vehicles Financed, 2018
8. Government Regulations
8.1. Banking Structures Prevalent in Qatar
8.2. Regulatory Framework for Qatar Credit Institutions
8.2.1. Process to start a Financing Company
8.2.2. Renewing or Cancellation of a Financing Company
9. Business Environment Analysis in Qatar Auto Finance Market
10. A Snapshot on Digitalization of Auto Finance & the Way Forward
10.1. Operating Model of Digital Auto Finance
11. Trends & Developments
12. Issues and Challenges
13. Competitive Landscape in Qatar Auto Finance Market
13.1. Competition Overview
13.2. Strengths & Weaknesses of Major Domestic Players in Qatar Auto finance market
14. Company Profiling of Major Players in Qatar Auto Finance Market (Including Company Overview, Recent Developments, USP, Number of Branches, Business Segments, Future Strategy, Asset Under Management(AUM), Interest Rates, Eligibility Criteria, Down Payment Ratio and Maximum Tenure of Loan)
14.1. Banks
14.1.1. Qatar National Bank
14.1.2. Qatar Islamic Bank
14.1.3. Commercial Bank of Qatar
14.1.4. Masraf Al Rayan
14.1.5. Doha Bank
14.1.6. Qatar International Islamic Bank (QIIB)
14.2. Non Banking Financial Company (NBFCs)
14.2.1. First Finance Co.
14.2.2. Al Jazeera Finance
15. Customer Perspective for Qatar Vehicle Finance Market
15.1. Customer’s Journey Involved in Qatar Auto Finance Market
15.2. Customer Decision Making Parameters
16. Qatar Auto Finance Market Future Outlook and Projections, 2019-2023
16.1. Future Market Size, 2019F-2023F
Future Market Segmentation, 2019F-2023F
17. Analyst Recommendations for Qatar Vehicle Finance Market
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List of Figure
Figure 1‑1: Flow Chart for Qatar Auto Finance Market, 2018
Figure 1‑2: Flow Chart for Future Outlook Qatar Auto Finance Market, 2023
Figure 3‑1: Qatar Vehicle Finance Market Operating Model Including Banks, Captives, Non-Bank Financial Institutions, 2018
Figure 4‑1: Industry Life Cycle including Introduction, Growth and Maturity Stage of the Qatar Vehicle Finance Market
Figure 6‑1: Qatar Auto Finance Market Size by Loans Outstanding in QAR Million and Growth Rate in Percentage (%), 2016-2018
Figure 6‑2: Qatar Auto Finance Market Size by Loans Disbursed in QAR Million and Growth Rate in Percentage (%), 2014-2018
Figure 6‑3: Qatar Auto Finance Market Size by Number of New Vehicles Financed, showing New Vehicle Sales in units, New Vehicles Financed in units and Finance Penetration rate in Percentage (%), 2014-2018
Figure 6‑4: Qatar Auto Finance Market Size by Number of Used Vehicles Financed, showing Used Vehicle Sales in units, Used Vehicles Financed in units and Finance Penetration rate in Percentage (%), 2014-2018
Figure 6‑5: Average Ticket Size for New Vehicle Financed by Type (Bike, LCV and Cars) in QAR, 2014-2018
Figure 6‑6: Average Ticket Size for Used Vehicle Financed by Type (Bike, LCV and Cars) in QAR, 2014-2018
Figure 7‑1: Qatar Vehicle Finance Market Segmentation by Type of Vehicle on the Basis of Credit Disbursed in Percentage (%), 2014-2018
Figure 7‑2: Market Segmentation of Qatar Auto Finance Market on the basis of Type of Vehicle (Cars, LCV and Bikes) Financed in Percentage (%), 2018
Figure 7‑3: Qatar Car Finance Market Segmentation by Loan Tenure for both New & Used Car on the Basis of Number of Vehicle Financed, 2018
Figure 7‑4: Qatar Auto Finance Market Segmentation by Vehicle Finance Source (Banks, Captives and Non-Banking Financial Companies) on the basis of Total Number of Vehicles Financed in Percentage (%), 2018
Figure 10‑1: Origination to Closure of Loans in Digital Vehicle Finance Model
Figure 10‑2: Digital Auto Financing from Borrower’s Perspective
Figure 11‑1: Number of Used Vehicles Sold in Qatar in Units, 2014-2018
Figure 11‑2: Number of New Vehicles Sold in Qatar in Units, 2014-2018
Figure 11‑3: Overall Bank Financing & Advances in Qatar from 2014- Jun’ 2019, in QAR Billions
Figure 14‑1: Ownership share of various Stakeholders in Al Jazeera Finance in terms of Percentage, as of Dec’ 18.
Figure 16‑1: Qatar Auto Finance Future Market Size by Auto Loans Disbursed in QAR Million and Growth Rate in Percentage %, 2019(F)-2023(F)
Figure 16‑2: Qatar Auto Finance Future Market Size by Auto Loans Outstanding in QAR Million and Growth Rate in Percentage %, 2019-2023(F)
Figure 16‑3: Qatar Auto Finance Market Future Segmentation by Type of Vehicle on the Basis of Number of Vehicles Financed in Percentage (%), 2018 and 2023F
Figure 16‑4: Qatar Auto Finance Market Future Segmentation by Finance Source (Banks, NBFC’s and Captives) on the Basis of Number of Vehicles Financed in Percentage (%), 2018 and 2023
List of Table
Table 2‑1: Qatar Auto Finance Market Definitions including Auto Loans, Banks, Captive Finance Companies, Commercial Vehicles and Others, 2013-2023
Table 2‑2: List of Abbreviations with their Full Forms, used in the Report
Table 2‑3: Correlation Matrix of Qatar Auto Finance Market, 2014-2023
Table 2‑4: Regression Coefficients Output for Qatar Auto Finance Market, 2014-2023
Table 3‑1: Value Chain Analysis for Qatar Vehicle Finance Market Entities-Banks, Captives and Non-Bank institutions and Customers Including Role, Number, Major Players, and Types of Customers and others, 2018
Table 4‑1: Market Genesis of Qatar Vehicle Finance Market including Historical Overview, Growth Transition and Current Scenario; and Overview of the Qatar Vehicle Finance Market consisting of Market Stage, Market Nature, Upcoming Institutions, Regional Presence and Types of Customers
Table 4‑2: Year of Establishment of Major Competitive Entities in Qatar Vehicle Finance Market
Table 6‑1: Market Sizing Analysis and Rationale of Qatar Auto Finance Market on the basis of Loans Outstanding, Loans Disbursed and the Number of New and Used Vehicles Financed, Market Trends and Growth Drivers, 2014-2018
Table 7‑1: Qatar Auto Finance Market Segmentation by New and Used Vehicle Finance on the basis of Credit Disbursed (Loans and Leases) in QAR Millions, 2014-2018
Table 7‑2: Qatar Auto Finance Market Segmentation by Type of Vehicle on the basis of Number of Vehicle Financed, 2018
Table 7‑3: Qatar Car Finance Market Segmentation by Loan Tenure for both New & Used Car on the Basis of Cars Financed, 2018
Table 7‑4: Qatar Vehicle Finance Market Segmentation by Finance Source (Banks, Captives and Non-Banking Financial Companies) – Vehicle Finance on the Basis of Percentage of Vehicles Financed, 2018
Table 9‑1: PESTEL Analysis of Qatar Auto Finance Market Including Political, Environmental, Social, Technological, Economic and Legal Segments
Table 11‑1: Upcoming Projects in Qatar with Proposed Budget & Projected Deadline, as of 2018
Table 13‑1: Competition Overview of Qatar Auto Finance Market including Market Competitive Position, Entry Barriers, Major Players and Competition Drivers
Table 13‑2: Competitive Strengths and Weaknesses of Major Companies Present in Qatar Auto Finance Market including First Finance, Al Jazeera Finance, Qatar National Bank, Qatar International bank, Commercial Bank, Masraf Al Rayan, Doha Bank & Qatar International Islamic Bank
Table 14‑1: Company Profile of Qatar National Bank including Company Overview, Recent Developments, USP, Number of Branches, Business Segments, Future Strategy, Asset Under Management(AUM), Interest Rates, Minimum Salary, Minimum deposit and Maximum Tenure of Loan.
Table 14‑2: Subsidiaries & Associates of Qatar National Bank with QNB’s Percentage (%) Stake, as of 2018
Table 14‑3: Credit Ratings of Qatar National Bank including Financial Strength & Ratings, 2019
Table 14‑4: Company Profile of Qatar Islamic Bank including Company Overview, Recent Developments, USP, Number of Branches, Business Segments, Future Strategy, Asset Under Management(AUM) Interest Rates, Minimum Salary, Minimum deposit and Maximum Tenure of Loan.
Table 14‑5: Domestic Subsidiaries & Associates of Qatar International Bank with its Percentage (%) Stake, 2018
Table 14‑6: Global Subsidiaries & Associates of Qatar Islamic Bank with its Percentage (%) Stake, 2018
Table 14‑7: Credit Ratings of Qatar Islamic Bank including Financial Strength & Ratings, 2019
Table 14‑8: Company Profile of Commercial Bank including Company Overview, Recent Developments, USP, Number of Branches, Business Segments, Future Strategy, Asset Under Management(AUM) Asset Under Management(AUM), Interest Rates, Minimum Salary, Minimum deposit and Maximum Tenure of Loan.
Table 14‑9: Subsidiaries & Associates of Commercial Bank with its Country of Incorporation, Capital, Activity & Percentage of Ownership Stake (%), 2018
Table 14‑10: Credit Ratings of Commercial Bank including Financial Strength & Ratings, 2018
Table 14‑11: Company Profile of Masraf Al Rayan Bank including Company Overview, Recent Developments, USP, Number of Branches, Business Segments, Future Strategy, Asset Under Management(AUM), Interest Rates, Minimum Salary, Minimum deposit and Maximum Tenure of Loan.
Table 14‑12: Subsidiaries & Associates of Masraf Al Rayan Bank with its Country of Incorporation, Capital, Activity & Percentage of Ownership Stake (%), 2018
Table 14‑13: Credit Ratings of Masraf Al Rayan Bank including Financial Strength & Ratings, 2018
Table 14‑14: Company Profile of Doha Bank including Company Overview, Recent Developments, USP, Number of Branches, Business Segments, Future Strategy, Asset Under Management(AUM), Interest Rates, Minimum Salary, Minimum deposit and Maximum Tenure of Loan.
Table 14‑15: Credit Ratings of Doha Bank including Financial Strength & Ratings, 2018
Table 14‑16: Company Profile of Qatar International Islamic Bank including Company Overview, Recent Developments, USP, Number of Branches, Business Segments, Future Strategy, Asset Under Management (AUM) and Other Parameters
Table 14‑17: Credit Ratings of Qatar International Islamic Bank including Financial Strength & Ratings, 2018
Table 14‑18: Company Profile of First Finance Co. including Company Overview, Recent Developments, USP, Number of Branches, Business Segments, Future Strategy, Asset Under Management(AUM) ), Interest Rates, Minimum Salary, Minimum deposit and Maximum Tenure of Loan.
Table 14‑19: Company Profile of Al Jazeera Finance Bank including Company Overview, Recent Developments, USP, Number of Branches, Business Segments, Future Strategy, Asset Under Management(AUM), Interest Rates, Minimum Salary, Minimum deposit and Maximum Tenure of Loan.
Table 15‑1: End to End Stages involving the Consumer’s Perspective in the Auto Loan process
Table 15‑2: Customer Decision Making Parameters that Effect Decision Making for Auto Loan and their Impacts in Qatar.
Table 16‑1: Qatar Auto Finance Future Projections including Market Size, CAGR, Potential Market Growth Trends and Potential Market Headwinds and Challenges, 2019-2023
Table 16‑2: Qatar Auto Finance Market Future Segmentation by Finance Source on the Basis Number of Vehicles Financed, 2018 and 2023F
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