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Indonesia Car Finance Market Outlook to 2021: Ken Research

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This report will help industry consultants, car finance providers, potential entrants and other stakeholders to align their market centric strategies according to the ongoing and expected trends in the future. – PowerPoint PPT presentation

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Title: Indonesia Car Finance Market Outlook to 2021: Ken Research


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Indonesia Car Finance Market Outlook to 2021 Ken
Research
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The report titled Indonesia Car Finance Market
by Type (New and Used Passenger and Commercial
Cars), by Tenure of Loan, by Banks, Captive and
Non Captive Institutions - Outlook to 2021
provides a comprehensive analysis of the car
finance market in Indonesia. The report covers
aspects such as the market size of the Indonesia
Car Finance market segmentation on the basis of
type of car financed, tenure of loan and type of
financial institution. The report also covers the
competitive landscape, government regulations,
customer preferences, and value chain analysis of
the Indonesia Car Finance Market.
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In addition to this, the report also covers
company profiles and product portfolio of major
players. This report will help industry
consultants, car finance providers, potential
entrants and other stakeholders to align their
market centric strategies according to the
ongoing and expected trends in the
future. Market Potential Indonesia car finance
market is in the growing stage. It is dominated
by the unorganized players as they offer simpler
documentation and convenient car finance options.
The market has witness increasing use of
technology such as simulation tools, online
application and payment methods and others.
The market is dominated by multi finance
companies which majorly cater to the middle class
population. Consumer finance accounts for of
the total value of multi finance industry. The
car finance market
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increased from USD billion in 2011 to USD
billion in 2016 at a CAGR of . The major growth
drivers include expanding urban population,
growth in new and used car sales, lowering
lending rates and customizing loan schemes. The
market has witnessed stringent government
regulations in terms of adhering to the minimum
capital requirements, revision of down payments
requirements and submitting financial report.
Multi finance companies today offer convenient
facilities in terms of online presence which has
reduced documentation, digital installment
payment system and simpler procedure. This is the
reason why consumers prefer to deal with multi
finance companies rather than commercial
banks. Market Segmentation By New Car and Used
Car Finance New car finance have accounted for
the larger share of in the Indonesia car
finance market in 2016. Whereas, used car finance
contributed in the market revenue.
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The share of used car finance has increased over
the years from in 2013 to in 2016. Since
the value of new cars is greater than that of
used cars, therefore the credit disbursed in the
new car segment is higher. Moreover, this was
further supported by lower credit cost and
improving economy By Tenure of Loan-New Car The
loan tenure selected by the customer depends on
factors such as the price of the car, income
level of the customer, flexible scheme options
and other social factors such as family size and
life style of the individual. The maximum tenure
allotted for a car loan by both banks and private
finance companies is five years for new. It has
been observed that, people opting for 3 year loan
tenure has accounted for of the new cars
financed in 2016 followed by 2 years loan tenure
with of the number of new cars financed in
2016 whereas 4 year loan tenure contributed , 1
year loan tenure contributed and 5 Years loan
tenure contributed only in the number of car
financed in 2016.
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By Tenure of Loan-Used Car People opting for 2
year loan tenure of used cars has have registered
a share of in the number of used cars financed
in Indonesia in 2016. This was followed by 3 year
loan tenure with and 1 year loan tenure with
share while only of the used cars have been
financed for loan tenure of more than 3 years.
Shorter tenure is usually chosen due to easier
installments and the lesser price of used
cars. By Financial and Non Financial
Institutions (New Car) Commercial banks and
financial institutions have accounted for of
the credit disbursed for new car in 2016. The non
financial institutions which include captive and
non-captive finance companies have contributed
the remaining of the credit disbursed for new
car financing in 2016.
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By Financial and Non Financial Institutions (Used
Car) In the used car segment non financial
institutions have accounted for the larger share
of of the credit disbursed for used cars in
Indonesia in 2016. Whereas commercial banks
contributed the remaining of the credit
disbursed in 2016. Majority customers availing
used car loans lie in the low income level group.
Used car loans are riskier as the chance of
default is higher. Therefore, customers do not
prefer going to a commercial banks for such loans
due to the stringent regulation Competitive
Landscape The industry is fragmented and each
company caters to its own niche by specializing
in several categories such as product financed
(4W, 2W, HE) and geographical reach. These
companies majorly compete on improving services,
expanding distribution network and enhancing
customer relationship. The car finance market is
dominated by multi finance companies as they
offer car loan services to middle class
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people who form the largest proportion of
customers availing car finance. Banks dominate
the new car finance market as they are highly
regulated and present a reliable source for
availing car loans. The major players in the
industry are Bank Central Asia (BCA), Bank
Mandiri, Bank Rakyat Indonesia (BRI), Bank Negara
Indonesia (BNI), CIMB and Bank Danamon
Indonesia. Future Analysis and Projections The
Indonesia car finance market is expected to
increase from USD billion in 2016 to USD
billion in 2021 at a CAGR of in terms of
credit disbursement. The market will be driven by
increase in sale of passenger cars, inflated
ticket size and increased penetration rate.
Passenger vehicle segment of the Indonesias
automotive industry is estimated to grow at a
CAGR of from 2016 to 2020. The low cost green
car segment (LCGC) is expected to experience the
fastest growth at CAGR from 2016 to 2020.
Furthermore, with urbanization expected to reach
by 2030, significant infrastructure
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  • development and growing working age population,
    the sale of passenger cars will grow.
  • Key Topics Covered in the Report
  • Finance the Car in Indonesia Process
  • Financing Schemes Car Loans Indonesia
  • Loan Disbursed Cars in Indonesia
  • Financing a Used car in Indonesia
  • Used Car Sales in the Indonesia
  • New Car Loan Market Indonesia
  • Car Loans Indonesia Top 5 Banks
  • New Car Sales in Indonesia
  • Indonesia Car Loan Industry
  • Compare Auto Loans in Indonesia
  • Applying Car Loan in Indonesia
  • Car Loans Indonesia Bank Share

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Auto and Car Loans in Indonesia Indonesia Car
Credit Market Future Auto Classified Portals in
Indonesia Islamic Banks Indonesia Car Loan
Market Indonesia Average Loan Rate Top Indonesia
Car Loans Banks Vehicle Financing in
Indonesia New and Used Car Financing in
Indonesia Auto Loans Terms and Conditions in
Indonesia For further reading click on the link
below https//www.kenresearch.com/banking-financi
al-services-and-insurance/loans-and-advances/indon
esia-car-finance-market/142267-93.html
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Related Reports by Ken Research https//www.kenres
earch.com/banking-financial-services-and-insurance
/loans-and-advances/uae-car-finance-market/110143-
93.html https//www.kenresearch.com/banking-finan
cial-services-and-insurance/loans-and-advances/egy
pt-car-finance-market/124560-93.html Contact Ken
Research Ankur Gupta, Head Marketing
Communications query_at_kenresearch.com 91-124-42302
04
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