Analysts at Ken Research in their latest publication “Qatar Auto Finance Market Outlook to 2023 –By Banks, Non Banking Financial Companies and Captives, By New and Used Vehicles, By Type of Vehicle Financed (Motor Bikes, Cars and Light Commercial Vehicles) and By Loan Time Period” believe that the Qatar Auto Finance market demand is likely to follow a growth trend in the near future due to increasing penetration rates in used vehicles financing, increasing preference of debt financing & new vehicles sales. Some positive factors expected to impact the market, are the introduction of digitalization based lending models, the spread of customized loan products and a further rise in the penetration rate of both new & used vehicle finance. The market is anticipated to register a positive CAGR of 7.5% in terms of Loans Outstanding & CAGR of 6.7% in terms of Credit Disbursed during the forecasted period 2019-2023.
“The dominance of banks as primary lending institution for vehicle finance in Qatar is shifting to non-bank lenders such as Captives and Non-Banking Financial Companies, owing to introduction of attractive financing options and increased focus on digitizing the loan disbursement process.“
Growth Enablers: The Qatar Auto Finance Market is in its growth stage; however it witnessed a period of fluctuations between 204-2016, which could be attributed to sharp decline of international crude oil prices in 2014 and blockade led by Saudi & other gulf countries on allegations of supporting terrorism. The country currently has a motorization rate of around 40.0% only and increasing demand for used cars in the country portray the potential for growth of auto finance sector in Qatar.
Rising Sales of Used Vehicles: The automobile sales market has seen a shift in consumer trend with sale of used vehicles dominating the market since 2017. The growth in used vehicles saw an overall rise of around 38.0% in 2017. The new vehicles sales have been declining during the period of study and higher consumption spending habits have fueled the increase of used vehicle sales. Increase in used cars sales can also be attributed to leniency in lending provisions and better use of credit information of applicants for used vehicles by bank and NBFCs in the last few years.
Increasing Use of Technology in Auto Finance: With increasing technological developments in the banking sector, lending solutions have become less cumbersome for both the applicant and the bank. Banks have started adopting automatic loan application processing instead of manual processing which is both time & resource consuming. Banks even have separated portals to process or collect the details of loan applicant to assess the credit worthiness of the applicants and to further streamline the loan process for consumers.
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
For more information on the research report, refer to below link:
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