Market Research Reports - Ken Research New and Used Car Financing in Indonesia

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