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According to a recent report released by Grand View Research, Inc., the global automotive finance market is anticipated to reach a total market value of USD 451.71 billion by the year 2030, growing at a compound annual growth rate (CAGR) of 7.4% during the forecast period from 2025 to 2030. A primary factor contributing to this projected market growth is the rising global demand for autonomous vehicles. As interest in self-driving cars continues to grow, the need for financial products tailored to support the purchase and leasing of such vehicles is expected to increase. Additionally, governments around the world are implementing stricter road safety regulations, thereby accelerating the demand for autonomous vehicles equipped with cutting-edge technologies to ensure safer driving environments.
Another key driver of market expansion is the increased level of investment in the automotive finance sector, which is opening up new avenues for growth. A notable example includes MotoRefi, an automotive refinancing company, which in January 2021 announced it had successfully raised USD 10.0 million in funding through a round led by Moderna Ventures. The company plans to utilize this investment to expand its workforce and broaden its product offerings, thereby enhancing its market position and service delivery.
In addition, there is a growing trend of partnerships between automobile manufacturers and automotive finance providers aimed at improving customer access to vehicle financing solutions. For instance, in March 2022, CIG Motors, a distributor of the GAC automotive brand, entered into a collaboration with Polaris Bank Limited. Through this partnership, they launched the Easy Buy scheme, designed to make vehicle ownership more accessible and affordable for Nigerian consumers, thereby improving customer experience and driving car sales.
While the COVID-19 pandemic had a negative effect on market growth in 2021, the industry has since demonstrated significant adaptability. Automobile manufacturers, lenders, and dealers have adjusted their operations to suit the post-pandemic environment. One such response involved incentivizing new car purchases, as automakers introduced promotional offers to stimulate demand during challenging economic times. These strategic initiatives are expected to have a positive impact on the demand for automotive financing solutions over the forecast period.
Get a preview of the latest developments in the Automotive Finance Market? Download your FREE sample PDF copy today and explore key data and trends.
Frequently Asked Questions (FAQ) About the Global Automotive Finance Market
1. What is the projected size of the global automotive finance market?
The global automotive finance market was valued at USD 295.13 billion in 2024 and is expected to reach USD 451.71 billion by 2030, growing at a compound annual growth rate (CAGR) of 7.4% from 2025 to 2030.
2. What are the primary segments within the automotive finance market?
• Provider Type: Banks, Original Equipment Manufacturers (OEMs), and other financial institutions.
• Finance Type: Direct and indirect financing options.
• Purpose: Loans, leasing, and other financial services.
• Vehicle Type: Passenger vehicles and commercial vehicles.
3. Which regions are leading in automotive finance adoption?
In 2024, Europe dominated the market with a 39.3% share, attributed to a high concentration of automotive finance providers.
4. What factors are driving the growth of the automotive finance market?
Key drivers include:
• Rising demand for autonomous vehicles: Increasing consumer interest in self-driving cars.
• Government regulations on road safety: Policies promoting advanced vehicle technologies.
• Investment in automotive finance companies: Funding fueling innovation and expansion.
• Partnerships between automakers and financial institutions: Collaborations enhancing customer access to financing.
5. Who are the key players in the automotive finance market?
Prominent companies include:
• Ally Financial
• Bank of America
• Capital One
• Chase Auto Finance
• Daimler Financial Services
• Ford Motor Credit Company
• GM Financial Inc.
• Hitachi Capital
• Toyota Financial Services
• Volkswagen Financial Services
Order a free sample PDF of the Automotive Finance Market Intelligence Study, published by Grand View Research.
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