Australian Automotive Financing Market Size
| 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 |
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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 Market Trends
This section covers the major market trends shaping the Australia Automotive Financing Market according to our research experts:
Used Vehicle to Gain Momentum
Any vehicle that has been prior owned and is now being resold through a private seller, classified ads, or local dealers without undergoing a thorough vehicle inspection test by experts is considered a used vehicle. On the other hand, a certified pre-owned (CPO) vehicle has previously been extensively inspected (pre-purchase inspection) and reconditioned properly to perfection by professionals.
In Australia, changing consumer preferences and ease of owning a pre-owned car at a much more affordable price have provided significant traction to the market. Australia is an emerging economy with lowered GDP growth rate, people have low purchasing power. Used vehicle financing helps people to own a personal vehicle at the much-lowered price at affordable EMI installments. This reduces the burden of one-time payments just with a 30% initial down payment.
Under used vehicle financing, key automakers in Australia who are offering the pre-owned vehicles fleet also offer chances of getting the vehicle financed based on a certain time period and rate of interest regulation by country's nationalized banks. Fleet operators of commercial vehicles including light duty truck and medium and heady duty trucks often go for used vehicle financing option as it help them recover the purchasing amount faster compared to new vehicles.
Used vehicle delaers and OEMs now offer with better maintainence plans, longer life services and effective discounts whoch has helped key OEM to engage the consumers attention. OEM, finacier thus offer reasonable rate of interest and loan tenure which has helped people to reduce financial burden.
Considering these prominent factors for used car landscape in Australia, demand is expected to witness moderate growth rate during the forecast period.
Passenger Cars to Hold Highest Market Share
According to the Federal Chamber of Automotive Industries, new vehicle registration in August was 95,256 out of which passenger car sales registered 19,997 units. Moreover, passenger car sales stood at 2,21,556 units during the 2021 period with a decrease of 0.2% compared to 2020. Companies including Toyota, Mazda, Kia, Hyundai, and Mitsubishi registered maximum share in the car sales.
The passenger cars sold in Australia comprise of executive, mini cars, and sports cr which have gained much traction in the historic years. The Australian government has also been the flag bearer for elevating the demand for electric vehicles in the country.
- In February 2022, The Australian Government announced its investment of USD 6.1 million to accelerate the JET Charge's roll-out of electric vehicle charging infrastructure which has been a key challenge hindering electric vehicle adoption in the region. Moreover, JET Charge will install EV chargers in dealerships, for both public charging networks and residential spaces.
- Furthermore, The McGowan Government is constructing Australia's longest electric vehicle fast charging network by installing charging stations at every 45 locations across the states. This Installation of the charging stations is scheduled to begin in mid-2022 with the network is expected to be fully operational by January 2024.
With changing passenger vehicle landscape in Australia, in August 2022 Bank Australia shall stop giving the loans for IC engine model cars from 2025. The banks in Australia will only finance the hybrid and electric vehicles in order to take the country towards green economy.
Considering these factors and developments, demand for passenger sales financing is expected to witness high growth rate during the forecast period.
Australian Automotive Financing Industry Overview
The market for automotive financing in Australia is on the fragmented side. The presence of many organized and unorganized players has created such a market scenario. Also, most auto manufacturers, apart from offering their own financing, have tie-ups with banks and other financial institutions to offer a wider choice for their customers. But the relatively easier procedures to procure a loan from various nonbaking and city unions are expected to tilt the market in their favor.
Financiers including OEM, banks, and city unions have made stregatic forefront in order to witness improved sales bars in the market. Key major players ruling the market include Toyota Finance Australia Limited, Hyundai Motor Company, Australia Pty Limited, Mozo Pty Ltd., National Australia Bank Limited, and Australia, and New Zealand Banking Group Limited. Players are offering strategic offerings in terms of interest rates, loan tenure, and affordable downpayments.
Australian Automotive Financing Market Leaders
National Australia Bank Limited
The Australia and New Zealand Banking Group Limited
Toyota Finance Australia Limited
Hyundai Motor Company, Australia Pty Limited
Mahindra Automotive Australia Pty Ltd
*Disclaimer: Major Players sorted in no particular order
Australian Automotive Financing Market News
In August 2022, Australian banks announced that it has implemented a policy to stop issuing car loans for new upcoming gasoline and diesel cars in 2025. The initiative will prevent customers from being locked in IC engine cars.
Australian Automotive Financing Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porters Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value USD Billion)
5.1 Type
5.1.1 New Vehicle
5.1.2 Used Vehicle
5.2 Source Type
5.2.1 OEM
5.2.2 Banks
5.2.3 Credit Unions
5.2.4 Financial Institution
5.3 Vehicle Type
5.3.1 Passenger Cars
5.3.2 Commercial Vehicles
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 The Australia and New Zealand Banking Group Limited
6.2.2 Plenti Pty Limited
6.2.3 National Australian Bank
6.2.4 Toyota Finance Australia Limited
6.2.5 Hyundai Motor Company, Australia Pty Limited
6.2.6 Kia Australia Pty Ltd.
6.2.7 Mahindra Automotive Australia Pty Ltd
6.2.8 OzCar Pty Ltd.
6.2.9 Dutton Group
6.2.10 Mozo Pty Ltd.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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 |
Australian Automotive Financing Market Research 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.
What years does this Australia Automotive Financing Market cover?
The report covers the Australia Automotive Financing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Australia Automotive Financing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Automotive Finance in Australia Industry Report
Statistics for the 2024 Automotive Finance in Australia market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automotive Finance in Australia analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
