KSA Car Finance Market Outlook to 2026F

Driven by Women Entering the Market, Increasing Employment Opportunities in the Kingdom

Region:Middle East

Author(s):Anoushka Chawla and Khushboo

Product Code:KR1252

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Published on

November 2022

Total pages

82

About the Report

About the Report

The report provides a comprehensive analysis of the potential of Car Finance industry in KSA. The report covers an overview and genesis of the industry, market size in terms of credit disbursed.

Its market segmentations include by types vehicle financed, by tenure for new and used vehicles, types of lenders, by types of commercial and passenger vehicles; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.


Car Finance industry in KSA

Market Overview:

According to Ken Research estimates, the KSA Car Finance Market grew from ~SAR 20 Bn in 2017 to approximately SAR 40 Bn in 2021 – is forecasted to grow further into SAR ~70 Bn opportunity by 2026F, owing to the new government policies under Vision 2030, new players in the market and partnership with finance companies.

  • KSA is already the largest market for new and used cars as well as car parts in the Gulf region and the Middle East. KSA imports vehicles and parts worth $21 Mn every year.
  • Jeddah and Dammam are the automotive manufacturing hubs in the Saudi Arabia. Three major global OEMs (Mercedes, Volvo and MAN) producing Heavy Duty Commercial Vehicles are operating in the Western Region.


Key Trends by Market Segment:

By Type of Vehicle Financing: It’s a trend in KSA to mostly buy new cars and change a car every 5 years. Also, the new cars are majorly financed via loans whereas cash component is used to buy used cars.

By Major Cities: No banks or finance companies have built a user interface for booking car financing through online mode yet. Riyadh is the largest metropolitan city with the largest population in KSA, with the highest incomes and good infrastructure due to which demand for cars and car financing is the highest. 

Competitive Landscape

Future Outlook

The KSA Car Finance Market witnessed significant growth during the period 2017-2021, owing to Collaborations with Partners, Enhancing Service Offerings and Expand Pipeline with Predictive Analysis.

Growth rate of total cars financed is going to increase over the period as financing becomes easier, market penetration rates increase.

Scope Of The Report

Scope of the Report

By Type of Vehicle Financing

New car financing

Used car financing

By Type of Car Financed

Hatchbacks

Sedans

Sports Utility Vehicle

Multi-Purpose Vehicle

By Price

high (500,000+)

medium (200k-500k)

low (below 200K)

By Type of Institution

Banks

NBFC's

Captives

By Tenure of Loans

3-4 years

4-5 years

By Major Cities

Riyadh

Jeddah

Dammam

Others

By Booking Mode

Online

Offline

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Products

Products

Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report

  • Banks and its Subsidiaries
  • NBFCs
  • Captive Finance Companies
  • Government and Institutions
  • Automobile Companies
  • Car Dealers
  • Government and Institutions
  • Existing Car Finance Companies
  • OEM Dealerships
  • New Market Entrants
  • Investors
  • Auto mobile Associations


Time Period Captured in the Report

  • Historical Period: 2017-2021
  • Base Period: 2021
  • Forecast Period: 2022-2026F


Companies

Major Players Mentioned in the Report

Banks

  • Al Rajhi Bank
  • Riyad Bank
  • Al Jazeera Bank
  • Alinma Bank
  • Arab National Bank


NBFC’s

  • Al Yusr Leasing and Financing
  • Al Amthal Financing Company
  • National Finance House
  • Tajeer Finance
  • National Finance Company
  • Murabaha Marina Finance Company


OEM’s

  • Abdul Latif Jameel United Finance Co. (Toyota Distributor)
  • Aljabr Finance (KIA Distributor)
  • Walan finance company (hyundai)
  • Geely Finance (Geely Distributor)

Table of Contents

Table of Contents

1. Executive Summary

1.1 Executive Summary: KSA Auto Finance Market

2. Country Overview of KSA

2.1 Country Demographics and Socioeconomic Indicators, 2021

2.2 KSA Population Analysis, 2021

2.3 KSA Employment Analysis, 2021

2.4 Macroeconomic Trends in KSA

3. KSA Automotive Market Overview

3.1 KSA Automotive Market Overview

3.2 KSA Motor Vehicles Import Export Scenario

3.3 KSA Passenger Vehicle Overview

3.4 Passenger Car Landscape and Major Car Brands in the KSA Automotive Market

4. KSA Car Finance Market Overview

4.1 Ecosystem of KSA Car Finance Market

4.2 KSA Car Finance Market Evolution and Business Cycle

4.3 Timeline of Major Players in KSA Car finance Market

4.4 KSA Car Finance Value Chain Analysis

4.5 Ways to Finance a car in KSA

4.6 Islamic Finance Overview

4.7 Islamic Banking and Car Finance in KSA

4.8 KSA Operational Lease Market, 2017-2021

4.9 Penetration Rates and Number of Cars Finance in KSA, 2021

4.10 KSA Car Finance Market by Credit Disbursed, 2017-2021

4.11 KSA Car finance market by Outstanding loans, 2017-2021

5. KSA Car Finance Market Segmentation

5.1 By Type of Vehicle Financed (New and Used), 2021

5.2 By Type of Car (Sedan, Multi-Purpose Vehicle, Hatchback, SUV)

5.3 By Price Range (Less than 200K, 200-500K, more than 500K), 2021

5.4 By Type of Lenders (Banks, NBFCs, OEMs), 2021

5.5 By Tenure of Loans in Years (Less than 2, 3-4, 4-5), 2021

5.6 By Major Cities (Riyadh, Jeddah, Dammam, Others), 2021

6. Industry Analysis of KSA Car Finance Services

6.1 SWOT Analysis of KSA Car Finance Industry

6.2 Infrastructure Development Overview of KSA

6.3 Trends and Developments in KSA Car finance industry

6.4 Trends and Development in KSA Car Buyer Persona

6.5 Decision Making Parameters for Selecting Car Loan Vendor

6.6 Operational Strategies for KSA Car Finance Services Market

6.7 Issues and Challenges in KSA Car Finance Industry

6.8 Government policies affecting the KSA Car finance Industry

6.9 Government Initiatives for Automotive Industry

6.10 Growth Drivers of KSA Car Finance Market

7. Covid Impact on KSA Car Finance Industry

7.1 COVID Impact on the KSA Car Finance Industry

8. Competition Framework for KSA Car finance market

8.1 KSA Car Finance Market Competition Overview

8.2 Cross Comparison of Major Players in KSA Car Finance Market

8.3 Strengths and Weakness of Major Players in KSA Car finance market

9. Future Outlook and Market Projections

9.1 KSA Car finance penetration rate and total cars financed, 2026F

9.2 KSA Car Finance Market Size by Credit Disbursed, 2026F

9.3 By Type of Vehicle Financed (New and Used Vehicles), 2026F

9.4 By Type of Car (Sedan, Multi-Purpose Vehicle, Hatchback, SUV), 2026F

9.5 By Price Range (Less than 200K, 200-500K, more than 500K), 2021

9.6 By Type of Lenders (Banks, NBFCs, OEMs) and Tenure of Loans in Years (Less than 2, 3-4, 4-5), 2026

9.7 By Major Cities (Riyadh, Jeddah, Dammam, Others), 2026

10. Success Case Study of KSA Car Finance Market

10.1 Case Study on Al Rajhi Bank

11. Market Opportunities and Analyst Recommendations

11.1 Best Practices for Building a Successful Car finance company

11.2 Growth strategies for KSA Car finance market

12. Research Methodology

12.1 Market Definitions and Assumptions

12.2 Abbreviations

12.3 Market Sizing Approach

12.4 Consolidated Research Approach

12.5 Sample Size Inclusion

12.6 Limitation and Future Conclusion

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Research Methodology

Research Methodology

Step 1: Identifying Key Variables:

Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around market to collate industry level information.

Market Building:

Collating statistics on used car and new car over the years, penetration of car finance and down payment ratio to compute overall credit disbursed for cars. We will also review central bank statistics to understand credit disbursed and outstanding amount which can ensure accuracy behind the datapoint shared.

Validating and Finalizing:

Building market hypothesis and conducting CATIs with industry exerts belonging to different companies to validate statistics and seek operational and financial information from company representatives.

Research output:

Our team will approach multiple finance providing channels and understand nature of product segments and sales, consumer preference and other parameters, which will support us validate statistics derived through bottom to top approach from car finance providers.

Frequently Asked Questions

Frequently Asked Questions

01 What is the Study Period of this Market Report?

The KSA Car Finance Market is covered from 2017–2026 in this report, including a forecast for 2022-2026.

02 What is the Future Growth Rate of the KSA Car Finance Market?

The KSA Car Finance Market is expected to witness a CAGR of ~10% over the next four years.

03 What are the Key Factors Driving the KSA Car Finance Market?

New Government Policies under Vision 2030 and Entry of Women Drivers is likely to fuel the growth in the KSA Car Finance market.

04 Which is the Largest Car Type Segment within the KSA Car Finance Market?

The Sedan Car type segment held the largest share of the KSA Car Finance Market in 2021.

05 Who are the Key Players in the KSA Car Finance Market?

Al Rajhi Bank, Saudi National Bank (SNB), Abdul Latif Jameel United Finance and Al Yusr Leasing and Financing.

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