|
Forecast Period
|
2024-2028
|
|
Market Size (2022)
|
USD17.34 Billion
|
|
CAGR (2023-2028)
|
6.70%
|
|
Fastest Growing Segment
|
NBFCs
|
|
Largest Market
|
Passenger Cars
|
The Japan automotive
loan market is witnessing robust growth owing to the growing number of cars due
to the replacement of old models with modern models to improve the driving
experience. As a result, the demand for auto loans in Japan is expected to
increase throughout the anticipated period due to factors such as the increase
in transportation-related industrialization activities and the increased number
of customers seeking auto loans. Many dealers, brokers, or even showrooms will
offer an automotive loan scheme when an individual goes to the car showroom.
These schemes aim to help them pay some percentage of the car value in advance
and left have to pay them later monthly, which is expected to drive the Japan automotive
loan market.
The automotive loan is
provided by various financing companies, which helps buy a vehicle. Generally,
the lender lends the money, and the borrower must return the loan in equated
monthly installments (EMIs) over a defined tenure at a specific interest rate.
The automotive loan is primarily provided through banks, NBFCs (non-banking
financial company, OEM (original equipment manufacturer), and others (fintech
companies) over a specified tenure and interest rate.
According to Japan
Automotive Dealers Association and Japan Light Motor Vehicle and Motorcycle
Association, sales in Japan in November 2022 increased by 7% to 377,079 units.
According to the Japan Automobile Dealers Association (JADA), 3,675,650 new cars
were sold in 2021, and 40.5% were electric vehicles.