Global

Details

  • Industry: Automotive
  • Type: Survey report
  • Date: 9/24/2012

Executive summary: Key findings 

Key findings

Ongoing changes in the automotive industry influence the finance and leasing business. Captives have started to grow their business through product diversification into new mobility and banking related activities and expanding into emerging markets with high growth potential.

Evolution of the finance and leasing business

Evolution of the business


Key Findings

Finance and lease products

  • Ongoing product harmonization in established and emerging markets
  • Car loan market is saturated in established markets and constantly increasing in popularity in emerging markets
  • Leasing is an almost untapped business with immense opportunities
  • Electric cars increase residual value risk tremendously

Product diversification

  • Insurance, service, maintenance and fleet services offerings are growing in the emerging markets
  • Additional banking products are well established in Western Europe and offer huge market opportunities in all other markets
  • Obtaining a full bank license remains challenging in most countries, but is steadily increasing

New mobility

  • The green agenda offers vast opportunities in:
    • Battery leasing
    • Green company cars/fleets
  • Changing customer behavior, from car ownership to car usership, enables mobility solutions to become a profitable new business for captives
  • In addition to car-sharing, demand for multi-mode transportation is constantly increasing

Emerging markets

China

  • Customer acceptance is still low but steadily increasing
  • Regulations are constantly improving

India

  • Market is dominated by banks
  • Finance is already well accepted – leasing is untapped and presents huge opportunities

Russia

  • Customer acceptance is increasing after a difficult start
  • Managing the size of the country remains challenging

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automotive finance and leasing

About the study

Global automotive finance and leasing: The role of product diversification and emerging markets in future growth is based on desk research and in-depth interviews with senior executives representing key leasing and financing participants including banks, captives and independent auto leasing and financing organizations from China, France, Germany, India, Japan, Russia and the UK.

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