The Asia Pacific Automotive Fintech Market would witness market growth of 9.8% CAGR during the forecast period (2022-2028).
Several manufacturers know buyers are switching from vehicle dealerships to the internet market. Although original equipment manufacturers (OEMs) are reluctant to cede a good portion of their business to a third-party fintech firm, automakers and fintech lenders are collaborating to provide the best rates and incentives for digital finance. Instead, secondhand car sales online have become more popular because they are more adaptable and less resistant to fast digital adoption than conventional manufacturers.
The old one-time transaction model is being replaced by recurring revenue models, such as subscription-based and usage-based pricing models, due to changes in how customers and OEMs approach the market. Rethinking their legacy infrastructure may make the difference between OEMs that survive and those that flourish. Several Automakers have contracted out this duty to fintech firms. These firms offer a cloud-based monetization platform for subscription-based and usage-based enterprises, enabling a quicker time to market and more flexibility.
China's domestic automobile production will surpass 35 million units by 2025. More than 25 million vehicles were sold in 2020, including 19.9 million automobiles. A rise in vehicle sales paves the door for a rise in auto maintenance products. Nevertheless, even during the COVID-19, the Chinese government implemented several measures to promote automobile utilization. These efforts include postponing the implementation of the China Six Emission Standard until January 2021, providing fiscal and tax aid, accelerating the phase-out of obsolete diesel trucks, and expanding channels for trading used vehicles. Government support to the industry will increase the production and sales of vehicles, opening new growth opportunities for the automotive fintech and thereby driving the market growth in the region.
The China market dominated the Asia Pacific Automotive Fintech Market by Country in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $6,769.7 million by 2028. The Japan market is estimated to grow a CAGR of 9.1% during (2022 - 2028). Additionally, The India market would exhibit a CAGR of 10.4% during (2022 - 2028).
Based on Channel, the market is segmented into On Demand, and Subscription. Based on Vehicle Type, the market is segmented into Passenger Car, and Commercial Vehicle. Based on Propulsion Type, the market is segmented into ICE, and Electric. Based on End User, the market is segmented into Digital Loans & Purchase, Online Leasing, Online Insurance, and In-Vehicle Payments. Based on countries, the market is segmented into China, Japan, India, South Korea, Singapore, Malaysia, and Rest of Asia Pacific.
Free Valuable Insights: The Worldwide Automotive Fintech Market is Projected to reach USD 82.6 Billion by 2028, at a CAGR of 9%
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Kuwy Technology Services Pvt Ltd. (Volkswagen Financial Services AG) (Volkswagen AG), Creditas Soluções Financeiras Ltda., Euroclear SA/NV (Euroclear Holding SA/NV), Grab Holdings Inc, Blinker Inc., The Savings Group, Inc. (Autopay), Cuvva Limited, RouteOne LLC, By Miles, and AutoFi, Inc.
By Channel
By Vehicle Type
By Propulsion Type
By End User
By Country
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