Asia-Pacific Motorcycle Loan Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 65 Billion |
| Market Size (2029) | USD 104.68 Billion |
| CAGR (2024 - 2029) | 10.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Asia-Pacific Motorcycle Loan Market Analysis
The Asia-Pacific Motorcycle Loan Market size is estimated at USD 65 billion in 2024, and is expected to reach USD 104.68 billion by 2029, growing at a CAGR of 10% during the forecast period (2024-2029).
Asia-Pacific Motorcycle Loan Market generated a revenue of USD 65 billion in the current year and is poised to achieve a CAGR of 10% for the forecast period.
The Asia-Pacific region is a significant and dynamic market for motorcycle loans. It encompasses diverse countries with economic conditions, consumer preferences, and regulatory environments. The Asia Pacific region represents a large and growing motorcycle market. Rapid urbanization, increasing disposable incomes, and population growth increase the demand for motorcycles and motorcycle loans. Countries such as China, India, Indonesia, Vietnam, and Thailand are among the key markets driving the growth of the motorcycle loan segment in the region.
Economic conditions play a vital role in shaping the motorcycle loan market in the Asia-Pacific. Factors such as GDP growth rates, inflation, interest rates, and employment levels influence consumer confidence, affordability, and willingness to borrow. Favorable economic conditions, with stable growth and low-interest rates, can stimulate motorcycle sales and the demand for financing options.
The rising middle-class population and urbanization in many Asia-Pacific countries drive the motorcycle loan market. Motorcycles become popular as people migrate to cities and seek affordable transportation solutions. Motorcycle loans provide affordable financing, allowing individuals to purchase motorcycles for personal use or income-generating activities. Technology plays a significant role in the motorcycle loan market across the Asia-Pacific. Online loan application processes, digital documentation, and automated approval systems made it more convenient for borrowers to apply for motorcycle loans. Digital platforms and mobile applications also facilitated loan servicing and payment management, enhancing customer experience.
The pandemic disrupted global supply chains, affecting the production and distribution of motorcycles. Manufacturing facilities faced temporary closures, reducing the availability of new motorcycles in the market. The limited supply of motorcycles impacted the demand for motorcycle loans, as consumers needed more options to purchase. The economic uncertainty caused by the pandemic, including job losses, reduced incomes, and financial insecurity, led to decreased consumer confidence and spending. Many potential motorcycle buyers postponed or canceled their plans due to financial concerns. This decline in consumer spending directly affected the demand for motorcycle loans.
Asia-Pacific Motorcycle Loan Market Trends
Impact of Increasing Motor Vehicle Unit Sales
As motor vehicle sales, particularly car sales, increase, consumer preferences may shift towards car ownership. This shift can lead to a decrease in demand for motorcycles as a mode of transportation. Consequently, the demand for motorcycle loans may decline as consumers opt for car loans instead. Given the higher demand, financial institutions and lenders may prioritize financing options for motor vehicles. They may allocate more resources, marketing efforts, and competitive loan terms for car loans. It could result in fewer specialized motorcycle loan products or reduced promotional offers, impacting the accessibility and availability of motorcycle loans.
Increasing unit sales of motor vehicles can lead to heightened competition among lenders to capture a larger share of the auto loan market. This competition may lead to more attractive loan terms and lower interest rates for car loans. In contrast, motorcycle loans may need more competitive terms or higher interest rates due to reduced demand and less focus from lenders.
India Dominates The Market
The growth rate of motorcycle loans has increased in India due to the popularity of motorcycles in the country. Factors like increased consumer demand for motorcycles and the availability of financing options increased the market's growth in India. Motorcycle loan terms and interest rates in India vary depending on the borrower's creditworthiness, the lender's policies, and the loan duration.
Indian motorcycle loans provide low interest rates, which attracts more customers so there is an increased demand for taking new loans. To improve consumer experiences some lenders, in India provide online loan applications for convenience. Therefore, these factors increase the growth rate of motorcycle loans in India.
Asia-Pacific Motorcycle Loan Industry Overview
The motorcycle loan market in Asia-Pacific is highly competitive, with various financial institutions, banks, and non-banking financial companies (NBFCs) offering loan products. Lenders strive to attract customers by providing competitive interest rates, flexible repayment options, and value-added services.
The competitive landscape of the Asia-Pacific motorcycle loan industry is diverse and consists of various financial institutions, lenders, and automotive financing companies. The competition encourages innovation and customization of loan products to cater to customers' needs. Monitoring market developments, industry reports, and customer feedback can provide insights into the evolving competitive landscape in the Asia Pacific motorcycle loan industry. Following is the list of companies in the market: Ford Motor Credit Company, Toyota Financial Services, China International Capital Corporation, Citi Bank, and Mitsubishi HC Capital Asia Pacific
Asia-Pacific Motorcycle Loan Market Leaders
Ford Motor Credit Company
Toyota Financial Services
China International Capital Corporation
Citi Bank
Mitsubishi HC Capital Asia Pacific
*Disclaimer: Major Players sorted in no particular order
Asia-Pacific Motorcycle Loan Market News
- May 2023: Private equity firm Carlyle and Indian billionaire Azim Premji's investment unit are in separate talks to invest about USD 150 million in TVS Credit Services. It is an arm of a scooter and motorcycle maker, TVS Motors.
- March 2023: Ideanomics (NASDAQ: IDEX), a global company focused on accelerating the commercial adoption of electric vehicles (EV), today announced that its subsidiary Energica Motor Company, maker of the world's best high-performance electric motorcycle, delivered its first shipments to Japan and Australia.
Asia-Pacific Motorcycle 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
4.2 Market Drivers
4.2.1 Increasing Motorcycle Ownership
4.2.2 Customized Loan Options
4.3 Market Restraints
4.3.1 Market Saturation and Competition
4.3.2 Changing Mobility Preferences
4.4 Insights on Various Regulatory Trends Shaping the Market
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Insights on Impact of Technology in the Market
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Provider Type
5.1.1 Banks
5.1.2 NBFCs (Non-Banking Financial Services)
5.1.3 OEMs (Original Equipment Manufacturer)
5.1.4 Others (Fintech Companies)
5.2 By Country
5.2.1 India
5.2.2 China
5.2.3 Japan
5.2.4 Vietnam
5.2.5 Australia
5.2.6 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
6.1 Market Concetration Overview
6.2 Company Profiles
6.2.1 Ford Motor Credit Company
6.2.2 Toyota Financial Services
6.2.3 Mitsubishi HC Capital Asia Pacific
6.2.4 China International Capital Corporation
6.2.5 Citi Bank
6.2.6 HDFC Bank
6.2.7 Bank of China
6.2.8 BNP Paribas
6.2.9 OJSC alfa bank
6.2.10 VTB Bank OJSC*
- *List Not Exhaustive
7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Asia-Pacific Motorcycle Loan Industry Segmentation
Motorcycle loans are installment loans, which means that the lender will cover the cost of your motorcycle purchase, and then you'll repay the debt in monthly installments over a fixed repayment term. They also typically come with fixed interest rates, so you don't need to worry about fluctuating monthly payments.
Asia Pacific Motorcycle Loan Market is segmented by vehicle type, provider type, percentage of amount sanctioned, provider type, tenure, and country. By vehicle type, the market is sub-segmented into two-wheelers, passenger cars, and commercial vehicles. By provider type, the market is sub-segmented into banks, NBFCs (non-banking financial services), OEM (Original Equipment Manufacturers), and others (fintech companies). By percentage of amount sanctioned, the market is sub-segmented into less than 25%, 25-50%, 51-75%, and more than 75%. By tenure, the market is sub-segmented into less than 3 Years, 3-5 Years, and more than 5 Years. By country, the market is sub-segmented into India, China, Japan, Vietnam, Australia, and the rest of Asia-Pacific.
The report offers market size and forecasts for the Asia-Pacific Motorcycle Loan Market in value (USD) for all the above segments.
| By Provider Type | |
| Banks | |
| NBFCs (Non-Banking Financial Services) | |
| OEMs (Original Equipment Manufacturer) | |
| Others (Fintech Companies) |
| By Country | |
| India | |
| China | |
| Japan | |
| Vietnam | |
| Australia | |
| Rest of Asia-Pacific |
Asia-Pacific Motorcycle Loan Market Research Faqs
How big is the Asia-Pacific Motorcycle Loan Market?
The Asia-Pacific Motorcycle Loan Market size is expected to reach USD 65 billion in 2024 and grow at a CAGR of 10% to reach USD 104.68 billion by 2029.
What is the current Asia-Pacific Motorcycle Loan Market size?
In 2024, the Asia-Pacific Motorcycle Loan Market size is expected to reach USD 65 billion.
Who are the key players in Asia-Pacific Motorcycle Loan Market?
Ford Motor Credit Company, Toyota Financial Services, China International Capital Corporation, Citi Bank and Mitsubishi HC Capital Asia Pacific are the major companies operating in the Asia-Pacific Motorcycle Loan Market.
What years does this Asia-Pacific Motorcycle Loan Market cover, and what was the market size in 2023?
In 2023, the Asia-Pacific Motorcycle Loan Market size was estimated at USD 58.5 billion. The report covers the Asia-Pacific Motorcycle Loan Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Motorcycle Loan Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia-Pacific Motorcycle Loan Industry Report
Statistics for the 2024 Asia-Pacific Motorcycle Loan market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia-Pacific Motorcycle 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.
