This is true not only over the long-term horizon in the emerging markets, but also in the more established, yet mostly saturated finance and lease markets of Western Europe and the US.
This is one of the findings of KPMG’s report: Global Automotive Finance and Leasing: The Role of Product Diversification and Emerging Markets in Future Growth . It provides a unique and comprehensive comparison of the business environment, market potential, business characteristics and prospects between the US, Western Europe, China, India and Russia.
It finds that, while the risk potential is higher in the emerging markets, strong prospects exist through the offering of traditional finance services as well as the further expansion of lease and additional services business.
Facing lower projected car sales in Europe and increasing overcapacity and competitive pressures in the emerging markets, the finance and lease businesses of automotive original equipment manufacturers (OEMs) would stand to benefit by adjusting their operating models to meet the changing global conditions, this international report suggests.
Read the full story or download the report.