The Egyptian auto finance market is expected to grow at a CAGR of

Gurugram, India, December 14, 2022 (GLOBE NEWSWIRE) — Egypt Automotive Finance Market is in the growth phase, driven by digital advances, smart contracts, digital finance and positive impacts of Covid-19 and government policies. There are several players in the Egyptian auto finance market including QNB Alahli Leasing, Global Corp, Banque Misr, ADIB, AI Bank, Al Baraka, etc.

  • Financial penetration is expected to increase while down payment rates will continue to fall, helped by improved access to finance and better offerings from financial institutions
  • Several fintech startups are also predicted to enter the landscape, which could pose a threat to traditional financial firms and banks. These startups would typically work towards the development of products to advance the digitization of the banking sector.
  • Banks and captives are concentrating on expanding their share in the used car segment; New NBFCs are also expected to enter the competitive landscape to meet the growing need for vehicle financing in the country.

Changing consumer preferences: Demand for personal vehicle loans is expected to be greater than in the commercial vehicle segment. Buyers are showing a preference for more expensive vehicles, and those seeking lower cost are costing up to used cars as the segment becomes more organized. This makes the passenger loan segment grow. The financing penetration of new vehicles and used vehicles is expected to increase, along with an increase in the proportion of the financed sum. These factors are bound to support credit growth.

Positive effects of COVID 19: The market is dominated by the unorganized sector, where the scope for consumer protection is rather limited. Disorganized dealerships gain buyers’ trust by eliminating subjective bias towards sellers (which may include certain vehicle makes and models) while facilitating the overall transaction.

Introduction to Smart Contracts: Smart contracts are the future. This would enable safer and faster settlement of financial market transactions. These contracts use software to activate automatic triggers that allow transactions without human intervention. The digital upheavals will make the financial services process faster, cheaper, more transparent and more user-friendly. It will also increase the prospects for expanding financial inclusion.

analysts at Ken Research in their latest publication Egypt Car Finance Market Outlook to 2027Driven by female drivers entering the market, digital advances and government initiatives by Ken Research provides a comprehensive analysis of the potential of the auto finance market in Egypt. Increasing demand for financing automobiles among the population along with government initiatives are expected to contribute to the market growth during the forecast period. The Egyptian Auto Finance Market is expected to grow at a robust CAGR of 11% during the forecast period 2023F-2027F.

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Key Segments Covered:-
Egypt car financing market
By vehicle type (after credit paid out) 2022P and 2027F:

By vehicle age (after balance paid out) 2022P& 2027F:

By institution (after balance paid out) 2022P& 2027F:

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After tenure (after balance paid out) 2022P& 2027F:

  • 1-3 years
  • 3-5 years
  • 5-7 years

Main target group:-

  • Auto finance provider
  • insurance companies
  • automaker
  • financial service providers
  • NBFC’s
  • fintech company
  • government agencies and regulators

Period covered in the report:-

  • Historical year: 2017-2022
  • base year: 2022
  • Forecast period: 2023F – 2027F

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Covered Companies:-

  • Bank Mr
  • National Bank of Egypt
  • Agricultural Bank of Egypt
  • Industrial Development Bank
  • Banque Du Caire
  • The United Bank
  • Bank of Alexandria
  • Commercial International Bank (Egypt)
  • Attijariwafa bank Egypt SAE
  • Societe Arabe Internationale de Banque
  • Blom Bank – Egypt
  • Credit Agricole Egypt SAE
  • Emirates National Bank of Dubai SAE
  • Suez Canal Bank
  • Qatar National Bank Alahli SAE
  • Arab investment bank
  • AL Ahli Bank of Kuwait – Egypt
  • First Abu Dhabi Bank – Msr
  • Housing and Development Bank
  • Al Baraka Bank of Egypt SAE
  • National Bank of Kuwait – Egypt (NBK)
  • Abu Dhabi Islamic Bank – Egypt
  • Abu Dhabi Commercial Bank Egypt
  • Egyptian golf bench
  • Arab African International Bank
  • HSBC Bank Egypt SAE
  • Arab Banking Corporation – Egypt SAE
  • Export Development Bank of Egypt
  • Arab Bank PLC

Key Topics Covered in the Report:-

  • Overview of the Egyptian car financing market
  • Egyptian Auto Finance Market Ecosystem
  • Business Cycle and Emergence of the Egyptian Auto Finance Market
  • Industry analysis of the Egyptian Auto Finance Market
  • SWOT Analysis of the Egyptian Auto Finance Market
  • Key growth drivers in the auto finance market in Egypt
  • Major challenges and bottlenecks in the Egyptian car financing market
  • Regulatory Framework in the Egyptian Auto Financing Market
  • Competitive landscape in the Egyptian auto finance market
  • Market share of major auto finance providers in Egypt auto finance market
  • Detailed Analysis of Egypt Auto Finance Market (Market Size and Segmentation, 2017-2022; Future Market Size and Segmentation, 2023-2027F)
  • Market Opportunities and Analyst Recommendations
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For more insights on the market insights, please refer to the following link :-

Egypt car financing market

Related reports From Ken Research:-

Philippines Auto Finance Market Outlook to 2026 – Driven by changes in consumer spending, easier lending, improved technology and government support

The Philippines is the second fastest growing vehicle market in ASEAN with commercial vehicles having higher market share and the market has observed the maximum growth in the automotive industry in ASEAN countries with auto loans growing over the past five years mainly due to population growth and economic growth . The auto finance market is in the growth phase with banking institutions and NBFCs leading the market and online aggregator platforms entering the market with the launch of online personal loan aggregator platforms to simplify the provider selection process such as BSP Pay and Pesopay The top aggregator, Better technological infrastructure in the form of growing auto finance platforms and increasing use of AI and ML for a better auto lending experience will lead the future growth of the industry. Innovative business models like Subscription Lending & Shared Ownership can grow in the future to increase car financing. Good growth is still expected for the Philippine auto financing market.

Indonesian Auto Finance Industry Outlook to 2026 – Driven by increasing digital penetration, evolving characteristics of vehicle ownership and government rebates amid systemically regulated vehicle ownership and financing policies by regulators

Growing population, rising income levels and post-Covid economic recovery are leading to an increase in vehicle sales, which is expected to drive the increase in outstanding auto loans in Indonesia. Hence, the auto finance market is in the growth stage where banking institutions and NBFCs are leading the market and online aggregator platforms are entering the market. And the launch of online personal loan aggregator platforms in the market to ease the provider selection process like BSP Pay, Pesopay is among the top aggregators, better technological infrastructure in the form of growing auto finance platforms, digital installment payment system, zero or very less face-to-face dealings and simpler procedures , e.g. B. Kredit Pintar, and the increasing use of AI and ML for a better auto lending experience will lead the future growth of the industry. Innovative business models like Subscription Lending & Shared Ownership can grow in the future to increase car financing. Good growth is still expected for the Indonesian auto financing market.

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Vietnam Auto Finance Market Outlook to 2026F – Driven by digital penetration and bank dominance, as well as a shift in consumer preferences from 2W to 4W

The Vietnam cold chain market is projected to grow at a double-digit CAGR over the period 2016-2021. The market is currently in the growth phase due to lower interest rates as well as increasing government initiatives and investments in the industry. The pandemic has led to a slow growth in auto finance, with Vietnamese preferring to own a private vehicle to avoid public transportation. The proliferation of internet and smartphones as well as the increasing purchasing power of the middle class led to changing consumer preferences, which are some of the key factors driving the auto finance market in Vietnam.

Malaysian Automotive Finance Market Outlook to 2026 – Driven by exorbitant car prices, growing digital penetration, preference for personal car ownership amid systemically regulated government car ownership policies

The number of car owners in Malaysia exceeded the population in Malaysia. One of the reasons is the poor public transport infrastructure. The used car industry is also booming and is reportedly on track to post double-digit sales growth. Import of vehicles still exceeds export, resulting in a huge trade deficit. The government has taken various initiatives to support domestic vehicle manufacturing, creating companies such as Proton and Perodua. The government also gives various incentives for purchasing National Car. The market is maturing with a stable population, high share of passenger cars and a small domestic commercial vehicle market, growth opportunities in Malaysia are quite limited.

UAE Auto Finance Market Outlook to 2026F – Driven by growing digital penetration, evolving characteristics of vehicle ownership and government rebates amid a systematic regulated vehicle ownership and finance policy by regulators

According to Ken Research estimates, the UAE auto finance market has declined at a CAGR of -6.3% from 2016 to 2021 due to government regulations, lifestyle changes and COVID-19 lockdown, but growth is expected to normalize in the coming period to the emergence of new and improved technologies. The UAE auto finance market is expected to grow at a positive CAGR of ~17% between 2022E and 2026F.

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