Global

Details

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

Finance and leasing landscape: Russia 

Finance and leasing landscape: Russia

There are opportunities in Russia as the economy rebounds, car sales rise and consumers income and acceptance of financing improves. Finance and leasing companies can prosper by expanding their financing offerings, introducing basic banking products and improving the service networks and fleet services.

Market structure and business environment in Russia

Strong market potential

  • Positive outlook for automotive finance and leasing due to high increasing car sales and public recognition of finance and lease products
  • Consumer market clearly dominated by state owned banks due to their huge customer base, comprehensive infrastructure and the extensive insights about market intelligence
  • Independent leasing companies dominate the Russian company fleet market since banks do not offer fleet management solutions

Very restricted regulatory rules and refinancing tools

  • Straightforward approval process
  • Approval of basic car financing products requested at the Central Bank of Russia
  • Very restricted application of funding tools, dependency on credit lines from domestic banks
  • Securitization of auto loan is not allowed

Serious risk potential

Risk potential - Russia


Business characteristics of Russian finance and leasing market

  • Not well established business due to high investment effort
  • Customer acceptance not very strong - Russians still prefer to pay cash
  • Twenty-five to Fifty percent of private customer sales are financed, leasing is not provided
  • Six percent of company cars are leased, with a prospering business outlook

Key Findings: Evaluating future financing and leasing growth in Russia

Traditional F & L services
Financing Services - Expand offerings
Leasing Services - Combine with fleet services
SERVICES
Additional vehicle services - Improve service network and fleet services
Green mobility
New mobility solutions - Observe developments
BANKING
Additional banking services - Introduce basic products for customer retention
Full banking activities - Monitor law changes and be prepared for upcoming possibilities


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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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