The Singapore Auto Finance industry is at a growth stage and is increasingly being supported by modern digital infrastructure and huge loan portfolio. The average cost of car loan in the industry is ~2.6% and ~2.7% for a new or used car respectively. Singapore Auto Finance market has grown in the in past few years owing to the favorable policies by Government for expanding green cars sector, increasing average disposable income of people, growing investments by large players for customer satisfaction.
Moreover, Emergence of digital finance aggregators, improving infrastructure, rising technological innovations along with increase in use of internet and rising mobile penetration have also led to this expansion in the market.
Market: The Auto Finance market basis credit disbursed as well as loan outstanding had seen relatively average growth in the last few years, recording a CAGR of XX% and XX% during 2015-2020 respectively. The CAGR had grown comparatively at a lower rate owing to a smaller number of cars financed in 2020 due to COVID – 19. Other contributing factors for relatively lower CAGR were high cost of loan, time-consuming application process, low vehicle sales growth and more.
As of 2020, on an average, XX% of the vehicles sold in Singapore were financed.
Singapore Auto Finance Market Segmentation
By Type of Cars Financed:
Singapore Auto Finance market is dominated by Used Vehicles in terms of absolute number of vehicles sold as well as financed.
However, relatively finance penetration rate is higher for new vehicles than used vehicles in the country owing to higher prices of the former.
By Type of Institution:
Majority of the Auto Loan Outstanding in Singapore is through Banks owing to the huge loan portfolio offered by them at comparatively lower interest rates.
Competitive Scenario in Singapore Auto Finance Market
The Auto Finance market of Singapore consists of a large number of Domestic as well as international players. However, only top few players occupy lion’s share of the market (basis credit disbursed) making the industry highly concentrated. Major Baking Institutions involved in Auto Loans Services in Singapore include DBS Bank, Standard Chartered, OCBC, May Bank, and UOB among others. Also, Major Non-Banking Financial Institutions in the country include Hong Leong Finance, Singapura Finance, Sing Investment and Finance and more.
The parameters at which the companies are competing are Interest Rate Offered, Clientele, service portfolio, Technology and more.
Singapore Auto Finance Future Outlook and Projections
The Singapore Auto Finance industry is expected to increase at a CAGR of XX% basis Auto credit disbursed and XX% basis Auto Loan Outstanding during 2020 to 2025. The credit disbursed is expected to rise in Singapore at higher-than-average CAGR owing to higher number of cars financed in the future. The government of Singapore is working towards expansion of Green Car Sales in the country which is expected to increase the demand of ‘Green Car Loans’ in the future years. New Business Models such as Shared Ownership Financing may also emerge in the country in the coming years. Lastly, Industry is expected to move towards a digital growth with the expansion of Artificial Intelligence, Machine Learning, Big Data and more to further simplify loan application process.
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Key Factors Considered in The Report
- Comprehensive analysis of Singapore Auto Finance Market and its segments.
- Listed major players and their positioning in the market.
- Identified major industry developments in the last few years and assessed the future growth of the industry.
For More Information, refer to below link: –
Singapore Auto Finance Market Research Report
Related Report: –
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