KSA Car Finance Market Outlook to 2026F
Driven by Women Entering the Market, Increasing Employment Opportunities in the Kingdom
November 2022
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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.
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
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By Type of Vehicle Financing |
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By Type of Car Financed |
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By Price |
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By Type of Institution |
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By Tenure of Loans |
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By Major Cities |
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By Booking Mode |
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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
2. Country Overview of KSA
2.2 KSA Population Analysis, 2021
2.3 KSA Employment Analysis, 2021
2.4 Macroeconomic Trends in KSA
3. 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
4.2 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
5.2 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
6.2 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
8. Competition Framework for KSA Car finance market
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
9.2 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
11. Market Opportunities and Analyst Recommendations
11.2 Growth strategies for KSA Car finance market
12. Research Methodology
12.2 Abbreviations
12.3 Market Sizing Approach
12.4 Consolidated Research Approach
12.5 Sample Size Inclusion
12.6 Limitation and Future Conclusion
Disclaimer
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Research Methodology
Research Methodology
Frequently Asked Questions
Frequently Asked Questions
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.
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.
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.
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.
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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