Market Size of Australia Automotive Financing Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.30 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Australian Automotive Financing Market Analysis
Australia automotive financing market was valued at USD 50.60 billion in 2021 and expected to surpass a net valuation of USD 73.60 billion by 2027 end, registering a solid CAGR growth of 6.30% during the forecast period.
Automotive sales in Australia have been impressive with Toyota, Volkswagen AG, and other players leading the market forefront. With changing consumer preferences and preferred car models offered by these companies, consumers are shifting towards car financing models to maintain their financial stability and own a car that can be easily financed over longer and shorter term EMI.
Covid-19 has triggered the market for automotive financing. Although before Covid people prefer to buy cars at full cash payment in order to avoid long-term EMI payments disturbing individual budgets. During covid people in Australia suffered economic losses and financial crisis which has helped them to realize the price and value of money. Post covid people have changed their respective ideologies in terms of money saving and security.
Moroever, this has triggered the deman dor finncing a car based on down pyments and paying rest amounts in the form of month EMI. This has helped consumer to manage their respective monthly expensiture nd also helped people with lower disposable income.
Considering these aspects demand for atomotive financing in Australia is expected to witness high growth rate during forecast period.
Australian Automotive Financing Industry Segmentation
Automotive financing is the service that offers new vehicles to consumers at much-lowered prices at affordable EMI installments. These installments are divided based on the loan amount, and tenure with some fixed rate of interest.
The Automotive financing market is segmented on the basis of type, source type, and vehicle type. On the basis of type, the market has been segmented into new vehicles and used vehicles. On the basis of source type, the market has been segmented into OEMs, banks, credit unions, and financial institutions, and on the basis of vehicle type, the market has been segmented into passenger cars and commercial vehicles. The report covers the market size in value (USD billion) for all the above-mentioned segments
| Type | |
| New Vehicle | |
| Used Vehicle |
| Source Type | |
| OEM | |
| Banks | |
| Credit Unions | |
| Financial Institution |
| Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
Australia Automotive Financing Market Size Summary
The automotive financing market in Australia is experiencing significant growth, driven by changing consumer preferences and economic factors. The shift from full cash payments to financing models has been accelerated by the economic challenges posed by the COVID-19 pandemic, prompting consumers to seek more manageable payment options. This trend is further supported by the increasing popularity of pre-owned vehicles, which offer a more affordable entry point for car ownership. The market is characterized by a mix of organized and unorganized players, with key automakers and financial institutions offering competitive financing options to attract consumers. The demand for automotive financing is expected to continue its upward trajectory, fueled by the need for financial flexibility and the growing acceptance of used vehicle financing.
In addition to consumer-driven changes, regulatory and infrastructural developments are shaping the automotive financing landscape in Australia. The government's push towards electric vehicles, supported by investments in charging infrastructure, is influencing financing trends, with banks and financial institutions increasingly focusing on hybrid and electric vehicles. This shift is reflected in the policies of major banks, which are phasing out loans for internal combustion engine vehicles. The market is fragmented, with major players like Toyota Finance Australia Limited and National Australia Bank Limited offering strategic financing solutions. As the market evolves, the demand for passenger vehicle financing is anticipated to grow, aligning with the broader transition towards a greener economy.
Australia Automotive Financing Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porters Five Force Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size in Value USD Billion)
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2.1 Type
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2.1.1 New Vehicle
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2.1.2 Used Vehicle
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2.2 Source Type
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2.2.1 OEM
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2.2.2 Banks
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2.2.3 Credit Unions
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2.2.4 Financial Institution
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2.3 Vehicle Type
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2.3.1 Passenger Cars
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2.3.2 Commercial Vehicles
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Australia Automotive Financing Market Size FAQs
What is the current Australia Automotive Financing Market size?
The Australia Automotive Financing Market is projected to register a CAGR of 6.30% during the forecast period (2024-2029)
Who are the key players in Australia Automotive Financing Market?
National Australia Bank Limited, The Australia and New Zealand Banking Group Limited, Toyota Finance Australia Limited, Hyundai Motor Company, Australia Pty Limited and Mahindra Automotive Australia Pty Ltd are the major companies operating in the Australia Automotive Financing Market.
