Australian Automotive Financing Market

Australian Automotive Financing Market Overview: 

The Australian automotive financing market is projected to exhibit a growth rate (CAGR) of 6.70% during 2024-2032. The growing vehicle ownership, attractive interest rates, flexible financing options, the rising consumer demand for new and used cars, the availability of online financing platforms, economic stability, and supportive government policies are some of the major factors driving the market growth.

Australian Automotive Financing Market Trends:

Increasing Vehicle Ownership and Demand

The rising consumer demand for both new and used vehicles fuels the need for automotive financing solutions, enabling more Australians to purchase vehicles. According to data from the Australian Bureau of Statistics, there were 20.1 million registered motor vehicles as of 31 January 2021. The national fleet increased by 1.7% from 2020 to 2021. Toyota topped the list of passenger vehicles for the 16th consecutive year with 3.0 million registrations. Diesel vehicles increased to 26.4% of the national fleet, up from 20.9% in 2016. An increase in registrations was reported in all states and territories. Queensland, South Australia, and the Australian Capital Territory each reported the largest increase from the previous year (2.3%). In contrast, Victoria's fleet grew the least by 0.7%. New South Wales, Victoria and Queensland accounted for 76% of the national fleet. New South Wales had the highest number of registrations with 5.9 million. The Northern Territory had the lowest number of registrations with 163 thousand. Light rigid trucks continued to have the largest growth rate in registrations, increasing 6.0%, followed by articulated trucks with 4.6%. Passenger vehicle registrations increased by 1.2% however, their share of the fleet fell 0.4 percentage points to 73.7%. In contrast, light commercial vehicle registrations increased by 3.3%, rising to 17.5% of the registered fleet.

Rising Supportive Government Policies

A stable economy and government initiatives aimed at supporting the automotive industry and consumer spending contributed to the robust growth of the automotive financing market in Australia. For instance, in March 2024, the Australian Renewable Energy Agency (ARENA) announced $4.76 million in funding from the Driving the Nation Program to Europcar Mobility Group for the ‘Electric Rental Vehicle and Charging Infrastructure Rollout’ project. Europcar Mobility Group will install 256 chargers across at least 41 sites around Australia, including metropolitan hubs and regional locations. The $110.6 million project will also encourage airports to consider the integration of EVs into parking, grid connections, and operations. This will support the deployment of around 3,100 rental EVs over the next 3 years.

Australian Automotive Financing Market News:

• In November 2023, NAB agreed to enter a strategic partnership with fintech lender Plenti Group Limited. Under the partnership, NAB plans to launch a co-branded secured automotive and electric vehicle loan product. NAB and Plenti also developed a proposition to provide customers access to select Plenti renewable energy finance offerings.
• In June 2023, Mahindra & Mahindra Ltd on Wednesday launched its flagship SUV XUV700 in Australia. Given the strategic importance of the market, the introduction of the XUV700 in Australia marks the company's ambitious global expansion strategy and signifies the beginning of a new phase for the brand in the country, Mahindra & Mahindra (M&M) said in a statement.
   

Australian Automotive Financing Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on type, source type, and vehicle type.

Type Insights:

• New Vehicle
• Used Vehicle
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes new vehicle and used vehicle.

Source Type Insights:

• OEM
• Banks
• Credit Unions
• Financial Institution
   

The report has provided a detailed breakup and analysis of the market based on the source type. This includes OEM, banks, credit unions, and financial institution.

Vehicle Type Insights:

• Passenger Cars
• Commercial Vehicles
   

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes passenger cars and commercial vehicles.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australian Automotive Financing Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australian automotive financing market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Australian automotive financing market?
• What is the breakup of the Australian automotive financing market on the basis of type?
• What is the breakup of the Australian automotive financing market on the basis of source type?
• What is the breakup of the Australian automotive financing market on the basis of vehicle type?
• What are the various stages in the value chain of the Australian automotive financing market? 
• What are the key driving factors and challenges in the Australian automotive financing?
• What is the structure of the Australian automotive financing market and who are the key players?
• What is the degree of competition in the Australian automotive financing market?  

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australian automotive financing market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australian automotive financing market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australian automotive financing industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.