Consumer Automotive Financial Services in Emerging Global Markets

Consumer Automotive Financial Services in Emerging Global Markets investigates the market for automotive financial services linked to sales of new and used passenger cars in ten important global markets. In addition to analysing the USD 182 billion market for finance and leasing services, the study also covers ancillary automotive financial services markets namely creditor insurance, motor insurance, road assistance, extended warranties and GAP insurance. The revenues generated from high margin ancillary products, which Finaccord quantifies for the first time in any published study, are crucial to enhancing the profits of a variety of market participants including dealers, manufacturers and independent finance providers.

The report draws on a survey of 765 leading car dealerships in ten countries, namely Argentina, Brazil, China, India, Indonesia, Mexico, South Africa, South Korea, Taiwan and Thailand, as well as an analysis of the approach to consumer automotive financial services of leading manufacturer groups typically representing around 30 automotive brands, in the same countries. The PartnerBASE™ database that accompanies the report details each of the marketing initiatives for consumer automotive financial services traced by Finaccord for both dealers and manufacturers. Together, the report and database will provide you with the definitive guide to current and future opportunities in consumer automotive financial services in ten emerging global markets.

Key findings from the executive summary include:

• across the ten countries in question, the total value of the consumer automotive finance and leasing market in 2011 broke down between USD 123.4 billion in gross advances and assets leased attributable to new cars and USD 58.7 billion attributable to used vehicles;
• revenues available to the automotive trade from the ancillary consumer automotive financial services investigated totalled approximately USD 22.1 billion in 2011, almost 90% of which was attributable to motor insurance;
• the automotive trade was responsible for distributing more than 70% of the value of personal motor insurance for passenger cars in China, India and Indonesia in 2011;
• international protagonists such as Allianz, AXA, BNP Paribas Cardif, HSBC, MAPFRE, Santander and Zurich, among others, are building partnerships with manufacturer brands and local importers in order to consolidate their position in markets that are often fragmented.