Motorcycle Loan Market Size
|Base Year For Estimation||2022|
|Market Size (2023)||USD 136.76 Billion|
|Market Size (2028)||USD 188.34 Billion|
|CAGR (2023 - 2028)||6.61 %|
*Disclaimer: Major Players sorted in no particular order
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Motorcycle Loan Market Analysis
The Motorcycle Loan Market size in terms of outstanding loan value is expected to grow from USD 136.76 billion in 2023 to USD 188.34 billion by 2028, at a CAGR of 6.61% during the forecast period (2023-2028).
- Motorcycles play a familiar and vital role in the lives of people around the world, their applications spanning from the pure utility, such as the transportation of goods, to personal enjoyment and sports; motorcycles satisfy these needs with their diverse product line-up. The motorcycle loan market is subject to regulations imposed by financial authorities in different jurisdictions. These regulations aim to protect consumers and ensure fair lending practices. Regulatory requirements may include guidelines on interest rates, disclosure of loan terms, and borrower protection measures.
- The motorcycle loan market, like many other sectors, has embraced online and digital platforms to streamline the application and approval process. Many lenders provide online loan applications, allowing borrowers to apply from the comfort of their homes. Digital platforms also enable lenders to offer pre-approval decisions and provide faster loan processing.
- Obtaining a motorcycle loan generally requires a certain level of creditworthiness. Lenders assess factors such as credit history, income stability, debt-to-income ratio, and the borrower's ability to repay the loan. Meeting the lender's criteria increases the chances of loan approval and may also impact the interest rate offered.
- Motorcycle loans typically come with fixed interest rates and repayment terms that can range from a few months to several years. The terms and conditions of the loans may vary depending on the lender and the borrower's creditworthiness. Some lenders may also offer flexible repayment options, such as balloon payments or extended loan terms.
- The Covid 19 disrupted global supply chains, affecting the production and availability of motorcycles. Manufacturing plants and distribution networks faced temporary closures or delays, leading to a decrease in the supply of new motorcycles. This limited the options available for borrowers looking to finance their motorcycle purchases.
- The pandemic influenced consumer behavior and preferences. With concerns about public transportation and social distancing, some individuals shifted towards personal vehicles, including motorcycles, as a mode of transportation. This shift in preference could potentially create new opportunities in the motorcycle loan market as the demand for motorcycles rebounds.
Motorcycle Loan Market Trends
Increasing Sales of Motorcycles will Drive the Market
- When motorcycle sales increase, more individuals are looking to purchase motorcycles. Many potential buyers may not have the full amount of funds needed to purchase a motorcycle upfront, leading them to seek financing options such as motorcycle loans. The higher the sales volume, the greater the demand for motorcycle loans.
- Increased sales in the motorcycle market often lead to increased competition among lenders. To attract customers and capture a larger market share, lenders may offer more competitive loan terms. This can include lower interest rates, extended repayment periods, or reduced fees.
- The competition benefits consumers by providing them with more favorable loan options and terms. With the rising demand for motorcycle loans, lenders may streamline their loan processes to accommodate the increased volume of loan applications.
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India is largest Revenue generating Market in Motorcycle Market
- Higher revenue in the motorcycle industry often corresponds to increased sales and demand for motorcycles. As more motorcycles are sold, the need for financing options, such as motorcycle loans, also rises. Consumers who may not have the full purchase amount available upfront turn to loans to afford their desired motorcycles. Thus, higher motorcycle revenue leads to increased demand for motorcycle loans.
- Asia-Pacific has emerged as the largest market for motorcycles, both in terms of production and sales. Countries like China, India, Indonesia, and Vietnam have significant motorcycle markets due to their large populations, rapid urbanization, and high demand for affordable transportation.
- Financial institutions and lenders closely monitor the revenue and sales performance of the motorcycle industry. As motorcycle revenue grows, lenders may expand their loan offerings to cater specifically to this market segment. They may develop specialized loan products tailored for motorcycle purchases, offering competitive interest rates, flexible repayment terms, and attractive financing packages. The expansion of loan offerings provides consumers with a wider range of options when seeking motorcycle financing.
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Motorcycle Loan Industry Overview
The Motorcycle loan market is competitive, with various lenders vying for customers' business. To attract borrowers, lenders may offer competitive interest rates, flexible terms, and value-added services. Borrowers are encouraged to compare offers from multiple lenders to find the best loan terms and conditions for their needs.
Various financial institutions participate in the motorcycle loan market, including banks, credit unions, and specialized lenders. Banks often provide loans to customers with good credit histories, while specialized lenders may cater to individuals with lower credit scores or those seeking specific motorcycle-related financing options.
Following is the list companies that operate in this market: Ally Financial Inc., Bank of American Corporation, GM Financial Inc., Capital One Financial Corporation, Ford Motor Credit Company
Motorcycle Loan Market Leaders
Ally Financial Inc.
Bank of American Corporation
GM Financial Inc.
Capital One Financial Corporation
Ford Motor Credit Company
*Disclaimer: Major Players sorted in no particular order
Motorcycle Loan Market News
- June 2023: Mitsubishi UFJ Financial Group acquired listed Indonesian motorcycle loan company Mandala Multifinance for 7 trillion IDT ( USD 465 million). The Japanese financial giant will hold 70.6% through its subsidiary MUFG Bank and 10% through Adira Dinamika Multi Finance, a subsidiary of Bank Danamon. MUFG will conduct a mandatory tender offer for the remaining 19.4% stake of Mandala Multifinance after the completion of the acquisition, which is expected by early next year. The purchase is subject to regulatory approvals.
- May 2023: Suzuki Motorcycle India inked a pact with Bajaj Finance, the lending arm of Bajaj Finserv, to finance the former's two-wheelers. As part of this agreement, the customers will get easy access to retail financing options on the purchase of Suzuki two-wheelers.
Table of Contents
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 - Porters' Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers
4.5.3 Bargaining Power of Suppliers
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 Vehicle Type
5.1.2 Passenger Car
5.1.3 Commercial Vehicle
5.2 By Provider Type
5.2.2 NBFCs (Non-Banking Financial Services)
5.2.3 OEM (Original Equipment Manufacturer)
5.2.4 Other Provider Types (Fintech Companies)
5.3 By Percentage of Amount Sanctioned
5.3.1 Less than 25%
5.3.4 More than 75%
5.4 By Tenure
5.4.1 Less than 3 Years
5.4.2 3-5 Years
5.4.3 More than 5 Years
5.5 By Geography
5.5.1 North America
220.127.116.11 Rest of North America
18.104.22.168 Rest of Europe
22.214.171.124 Rest of Asia-Pacific
5.5.4 Middle-East and Africa
126.96.36.199 Saudi Arabia
188.8.131.52 Rest of Middle-East and Africa
5.5.5 South America
184.108.40.206 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Market Concetration Overview
6.2 Company Profiles
6.2.1 Ally Financial Inc.
6.2.2 Bank of American Corporation
6.2.3 GM Financial Inc.
6.2.4 Capital One Financial Corporation
6.2.5 Ford Motor Credit Company
6.2.6 Daimler Financial Services
6.2.7 Mitsubishi HC Capital UK PLC
6.2.8 General Motors Financial Company, Inc
6.2.9 Toyota Financial Services
6.2.10 JPMorgan Chase & Co.*
- *List Not Exhaustive
7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Frequently Asked Questions
How big is the Motorcycle Loan Market?
The Motorcycle Loan Market size is expected to reach USD 136.76 billion in 2023 and grow at a CAGR of 6.61% to reach USD 188.34 billion by 2028.
What is the current Motorcycle Loan Market size?
In 2023, the Motorcycle Loan Market size is expected to reach USD 136.76 billion.
Who are the key players in Motorcycle Loan Market?
Ally Financial Inc., Bank of American Corporation, GM Financial Inc., Capital One Financial Corporation and Ford Motor Credit Company are the major companies operating in the Motorcycle Loan Market.
Motorcycle Loan Industry Report
Statistics for the 2023 Motorcycle Loan market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Motorcycle Loan analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.