Japan Car Loan Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 49.92 Billion |
| Market Size (2029) | USD 73.60 Billion |
| CAGR (2024 - 2029) | 8.07 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Japan Car Loan Market Analysis
The Japan Car Loan Market size is estimated at USD 49.92 billion in 2024, and is expected to reach USD 73.60 billion by 2029, growing at a CAGR of 8.07% during the forecast period (2024-2029).
The car loan market in Japan is subject to regulation by the Financial Services Agency (FSA) to ensure fair lending practices and consumer protection. Japan's car loan market is experiencing steady growth due to an increase in the number of vehicles owned as people replace older models with newer models to improve their driving experience. Car loans in Japan generally come with flexible loan terms, often ranging from 12 to 84 months. Borrowers can choose the term that best suits their financial situation and budget.
Japan's digitalization rate is expected to increase in the future, and offline and online companies are expected to enter the auto loan market. Additionally, the rise of fintech platforms is simplifying auto loans by enabling end-to-end digital loan approval, processing, and disbursements. The fintech industry is fundamentally changing the global financial landscape in several ways.
Car loan providers strategically focus on delivering value-added services to their clientele by harnessing artificial intelligence, business analytics, and blockchain technologies. Expanding their products and services range, these companies aim to elevate service quality and enhance customer satisfaction.
In addition to traditional car loans, some lenders offer leasing options, allowing consumers to lease a vehicle for a fixed period. Borrowers in Japan have the option to refinance their car loans if they find better terms or want to adjust their repayment schedules. The Japanese car loan market places a strong emphasis on customer service, with most lenders providing support and assistance throughout the loan application and repayment process.
Japan Car Loan Market Trends
Passenger Cars in Japan Market
Passenger cars are likely to be a concurrent rise in the demand for car loans. Consumers seeking to purchase vehicles may turn to car loans to finance their purchases, driving growth in the car loan market. Financial institutions may introduce diverse loan products to cater to the varying needs of car buyers. Differentiated loan offerings, such as flexible repayment terms, competitive interest rates, and special promotions, could emerge to attract a broader range of customers. The increase in car sales accelerates the adoption of digital technologies in the car loan market. Financial institutions invest in digital platforms for loan processing, approval, and management, providing customers with convenient and efficient online experiences. Financial institutions establish partnerships with car dealerships to provide integrated financing solutions. These collaborations can streamline the car-buying process and offer customers a seamless experience, potentially increasing the appeal of car loans.
Rising Sales of Electric Vehicles in Japan Market
The growing popularity of electric vehicles may lead to increased demand for “green” or environmentally friendly auto financing options. Financial institutions may introduce specialized loan products with favorable terms to incentivize the adoption of electric vehicles. Financial institutions might develop differentiated loan products specifically tailored to electric vehicle buyers. These products could include lower interest rates, extended repayment periods, or special incentives to encourage consumers to choose electric over traditional vehicles. Governments and financial institutions may collaborate to offer incentives or subsidies for customers purchasing electric vehicles. These incentives could come in the form of reduced interest rates, tax credits, or other financial perks to promote the adoption of cleaner transportation options. Financial institutions form partnerships with electric vehicle manufacturers to provide joint financing programs. These collaborations can lead to exclusive loan deals, discounts, or other benefits for consumers purchasing electric cars.
Japan Car Loan Industry Overview
The competitive landscape of the car loan market in Japan is diverse, with various financial institutions and lenders offering a range of loan products to consumers. Competitive forces have driven innovations in the market, Such as online loan platforms, telematics-based loan products, and options tailored to eco-friendly vehicles. The quality of customer service and support offered by lenders can be a significant differentiator in the competitive landscape. In Japan, Leasing companies provide leasing and car loan options, giving consumers flexibility in how they finance their vehicles. The following are the major companies operating in the market: SURUGA Bank Ltd, Orient Corporation, Bank of Kyoto, Ltd, MARUHAN Japan Bank Lao Co., Ltd, The Senshu Ikeda Bank, Ltd, etc.
Japan Car Loan Market Leaders
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SURUGA bank Ltd
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Orient Corporation
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Bank of Kyoto, Ltd
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MARUHAN Japan Bank Lao Co., Ltd
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The Senshu Ikeda Bank, Ltd
*Disclaimer: Major Players sorted in no particular order
Japan Car Loan Market News
- July 2023: Japanese prime auto loan issuer was to raise USD 251.6 million in U.S. ABS. OSCAR US Funding XV LLC is issuing three classes of notes totaling USD 251.6 million for OSCAR US 2023-1 with final maturities ranging from 2024 to 2027.
- June 2023: Mitsubishi UFJ Financial Group has agreed to acquire Indonesian auto loan provider Mandala Multifinance for USD 467 million to expand its presence in Asia and tap into emerging middle-class consumers in the region.
Japan Car Loan Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Increasing Consumer Demand for Vehicles
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4.3 Market Restraints
- 4.3.1 Credit Market Conditions
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4.4 Market Opportunities
- 4.4.1 Offering innovative and flexible loan products
- 4.5 Insights on impact of technology in the Market
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4.6 Industry Attractiveness - Porter's Five Forces Analysis
- 4.6.1 Bargaining Power of Suppliers
- 4.6.2 Bargaining Power of Buyers
- 4.6.3 Threat of New Entrants
- 4.6.4 Threat of Substitutes
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Vehicle Type
- 5.1.1 Passenger Vehicle
- 5.1.2 Commercial Vehicle
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5.2 By Ownership
- 5.2.1 New Vehicles
- 5.2.2 Used Vehicles
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5.3 By Provider Type
- 5.3.1 Banks
- 5.3.2 NBFCs (Non Banking Financials Companies)
- 5.3.3 Credit Unions
- 5.3.4 Other Provider Types (Fintech Companies)
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5.4 By Tenure
- 5.4.1 Less than Three Years
- 5.4.2 3-5 Years
- 5.4.3 More Than 5 Years
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 SURUGA bank Ltd.
- 6.2.2 Orient Corporation
- 6.2.3 Bank of Kyoto, Ltd.
- 6.2.4 MARUHAN Japan Bank Lao Co., Ltd.
- 6.2.5 The Senshu Ikeda Bank, Ltd.
- 6.2.6 Toyota Financial Services Corporation
- 6.2.7 The Kinokuni Shinkin Bank
- 6.2.8 Sompo Japan Insurance Inc
- 6.2.9 AK Kogyo Co., Ltd.
- 6.2.10 The 77 bank, Ltd.*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
** Subject To AvailablityJapan Car Loan Industry Segmentation
A car loan is the funds that one borrows from a lender for the sole purpose of purchasing a car. Lenders like banks and non-banking financial companies (NBFCs) offer auto finance to consumers in the form of new and used car loans.
Japan's car loan market is segmented by product, provider type, and tenure. By product, the market is segmented into passenger vehicles and commercial vehicles. By ownership, the market is segmented into new vehicles and used vehicles. By provider type, the market is segmented by banks, NBFCS (non-banking financial companies), credit unions, and others. Others include fintech companies. By tenure, the market is segmented into less than three years, 3-5 years, and more than 5 years.
The report offers market size and forecasts for the Japan car loan market in value (USD) for all the above segments.
| By Vehicle Type | Passenger Vehicle |
| Commercial Vehicle | |
| By Ownership | New Vehicles |
| Used Vehicles | |
| By Provider Type | Banks |
| NBFCs (Non Banking Financials Companies) | |
| Credit Unions | |
| Other Provider Types (Fintech Companies) | |
| By Tenure | Less than Three Years |
| 3-5 Years | |
| More Than 5 Years |
Japan Car Loan Market Research FAQs
How big is the Japan Car Loan Market?
The Japan Car Loan Market size is expected to reach USD 49.92 billion in 2024 and grow at a CAGR of 8.07% to reach USD 73.60 billion by 2029.
What is the current Japan Car Loan Market size?
In 2024, the Japan Car Loan Market size is expected to reach USD 49.92 billion.
Who are the key players in Japan Car Loan Market?
SURUGA bank Ltd, Orient Corporation, Bank of Kyoto, Ltd, MARUHAN Japan Bank Lao Co., Ltd and The Senshu Ikeda Bank, Ltd are the major companies operating in the Japan Car Loan Market.
What years does this Japan Car Loan Market cover, and what was the market size in 2023?
In 2023, the Japan Car Loan Market size was estimated at USD 45.89 billion. The report covers the Japan Car Loan Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Japan Car Loan Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japan Car Loan Industry Report
Statistics for the 2024 Japan Car Loan market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Car Loan analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
