Motorcycle Loan Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 145.80 Billion |
| Market Size (2029) | USD 200.79 Billion |
| CAGR (2024 - 2029) | 6.61 % |
| Market Concentration | Medium |
Major Players
*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 145.80 billion in 2024 to USD 200.79 billion by 2029, at a CAGR of 6.61% during the forecast period (2024-2029).
The market is set to grow significantly, propelled by various factors. Motorcycles fulfil diverse needs worldwide, serving as practical transportation and leisure vehicles, thus driving demand for financing options. Regulatory oversight is a key factor shaping the market, ensuring fair lending practices and consumer protection, which in turn impacts interest rates and loan terms.
Digitalization has revolutionized the sector, with online platforms streamlining loan applications and approvals, enhancing convenience for borrowers and efficiency for lenders. This technological integration presents opportunities for further innovation and improved customer experiences.
Creditworthiness remains pivotal in obtaining motorcycle loans, with lenders evaluating factors like credit history and income stability. Meeting lender criteria not only increases approval chances but also impacts interest rates and loan terms, underscoring the importance of financial responsibility.
Fixed interest rates and flexible repayment options characterize motorcycle loans, providing borrowers with choices to suit their financial circumstances. As the market evolves, lenders may explore tailored loan products and repayment structures to cater to diverse borrower needs, presenting opportunities for growth and innovation in the motorcycle loan sector.
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.
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.
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.
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 - 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
5.1.1 Two-Wheeler
5.1.2 Passenger Car
5.1.3 Commercial Vehicle
5.2 By Provider Type
5.2.1 Banks
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%
5.3.2 25-50%
5.3.3 51-75%
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
5.5.1.1 USA
5.5.1.2 Canada
5.5.1.3 Rest of North America
5.5.2 Europe
5.5.2.1 UK
5.5.2.2 Germany
5.5.2.3 France
5.5.2.4 Italy
5.5.2.5 Spain
5.5.2.6 Rest of Europe
5.5.3 Asia-Pacific
5.5.3.1 India
5.5.3.2 China
5.5.3.3 Japan
5.5.3.4 Vietnam
5.5.3.5 Austrilia
5.5.3.6 Rest of Asia-Pacific
5.5.4 Middle-East and Africa
5.5.4.1 Saudi Arabia
5.5.4.2 Egypt
5.5.4.3 UAE
5.5.4.4 Rest of Middle-East and Africa
5.5.5 South America
5.5.5.1 Argentina
5.5.5.2 Colombia
5.5.5.3 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
Motorcycle Loan Industry Segmentation
A motorcycle loan, also known as a motorcycle financing or motorcycle installment loan, is a type of loan specifically designed to help individuals purchase a motorcycle. it provides borrowers with the necessary funds to buy a new or used motorcycle, with the loan amount typically covering the full or partial cost of the motorcycle.
The motorcycle loan market is segmented based on vehicle type, provider type, percentage of amount sanctioned, tenure, and geography. 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 manufacturer), and other provider types (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, and by geography, the market is sub-segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
The report offers market size and forecasts for the motorcycle loan market in value (USD) for all the above segments.
| By Vehicle Type | |
| Two-Wheeler | |
| Passenger Car | |
| Commercial Vehicle |
| By Provider Type | |
| Banks | |
| NBFCs (Non-Banking Financial Services) | |
| OEM (Original Equipment Manufacturer) | |
| Other Provider Types (Fintech Companies) |
| By Percentage of Amount Sanctioned | |
| Less than 25% | |
| 25-50% | |
| 51-75% | |
| More than 75% |
| By Tenure | |
| Less than 3 Years | |
| 3-5 Years | |
| More than 5 Years |
| By Geography | ||||||||
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Motorcycle Loan Market Research Faqs
How big is the Motorcycle Loan Market?
The Motorcycle Loan Market size is expected to reach USD 145.80 billion in 2024 and grow at a CAGR of 6.61% to reach USD 200.79 billion by 2029.
What is the current Motorcycle Loan Market size?
In 2024, the Motorcycle Loan Market size is expected to reach USD 145.80 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.
What years does this Motorcycle Loan Market cover, and what was the market size in 2023?
In 2023, the Motorcycle Loan Market size was estimated at USD 136.16 billion. The report covers the Motorcycle Loan Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Motorcycle Loan Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Motorcycle Loan Industry Report
Statistics for the 2024 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 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
