Qatar Auto Finance Market Outlook to 2026F - Driven by Increasing Vehicle Prices and Low-Interest Rate in the Country

The report “Qatar Auto Finance Market Outlook to 2026F- Driven by Increasing Vehicle Prices and Low-Interest Rate In The Country”provides a comprehensive analysis of the potential of Auto Finance industry in Qatar. The report also covers an overview and genesis of the industry, market size in terms of credit disbursed; market segmentation by types vehicle financed, by tenure for new and used vehicles, types of lenders, by types of commercial and passenger vehicles; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.

Detailed Analysis of the Qatar Auto Finance Market:

Qatar lacks in domestic auto production, thereby importing all automotive vehicles as completely built-up units from different countries. There were 71,289 new vehicles registered in 2021 in Qatar, where private vehicles accounting for more than half of the share. Majority of the cars are financed through dealership which involve finding and connecting with the customers.

Qatar Auto Finance Market is in maturity stage as there is moderate growth owing to rising demand for two wheeler vehicle. QNB is leading and oldest Bank in Qatar with maximum contribution in the development of country. Expatriate population has been reducing in the country since last few years as the government is disincentivizing hiring of foreign national, leading to lack of opportunities. This has caused reduction in demand for auto loans by expats and decline in the growth rate of the Qatar auto finance market.

However, the rise in the sale of motorcycles for online food delivery business is contributing to the recovery of the Auto Finance sector in the country post-COVID-19. After covid-19, many countries have seen a rise in the spending expenditure of their citizen which is helping many economies to grow back to normal. Moreover, banks are providing 100% and 80% finance for electric and hybrid cars/vehicles to Qatari customers and ex-pats to reward them for making an environmentally-friendly choice. This is expected to attract consumers to opt for auto financing in the country.

Qatar Auto Finance Market Segmentations:

By Type of Lenders: NBFCs, Banks, and OEMs are the main lenders in Qatar. Captive financing was dominant in the Saudi market 10-15 years back, after which Banks and Finance Companies saw potential in the market and entered it. Banks and NBFCs saw potential in the market and started entering it.

By Type of Vehicle Financed: New vehicle contributed the highest share in credit disbursed by generating due to simple and flexible finance conditions in the country. Used Vehicle Market have a greater demand simply because they are used as an alternative transport method rather than the primary one since the public transport infrastructure is not yet developed.

By Tenure of New and Old Vehicles: Majorly auto loans are taken for a duration of 3-4 years. The new vehicles usually have longer loan tenure of more than 4 years. The used vehicles usually have shorter loan tenure of up to 4 years.

By Type of Passenger Motor Vehicle: Unlike South Asian countries where almost every household has a two-wheeler, the Qatar market is regaining at a steady rate due to increasing demand for personal vehiclespost-Covid era especially 4-wheeler. The sale of the new vehicle is expected to improve with the adoption of electric vehiclewhich is environmentally friendly
Competitive Landscape in Qatar Auto Finance Market:
New players such as Fin-tech companies are entering the market as the studies have shown. Companies are increasingly moving towards higher technological advancements to improve operational profits as well as customer experience. Competition is increasing among banks, NBFCs, and captives which forced banks to rethink their lending strategy in order to maintain their high market share. The major players in the auto loan market include Qatar National Bank, Doha Bank, and Commercial Bank. New banks that have entered the market include Masraf Al Rayan and Dukhan Bank.

Qatar Auto Finance Market Future Outlook and Projections: Qatar will host the FIFA World Cup 2022 which is expected to increase the tourist flow in the country. Approximately 1000+ thousand tourists are expected to arrive in Qatar by the end of 2022. Tourist flow will directly benefit the local business and automobile sector of the country. HCV shows the highest growth in the coming years with increasing construction projects in the country. The research shows that 2-Wheeler vehicle is expected to grow at the highest CAGR due to increasing online delivery for food. Also, the industry is moving towards digital advancement and technologies such as AI and ML to improve efficiency. Many new players, mostly fin-tech companies are entering the market with digital wallets and offering products like BNPL to the country.

Key Segments Covered

Qatar Auto Finance:

• By Type of Vehicle financed
• New
• Used

By Tenure (for New and OldVehicles):

• 1 year
• 2 years
• 3 years and more

By Type of Lender:

• Banks
• OEMs/Captives
• NBFC

By Type of Lending Bank:

• Government
• Private

By Type of Commercial and Passenger Motor Vehicle:

• Commercial
• Passenger

By type of commercial motor Vehicle:

• LMVMCVHCV

By Type of passenger motor vehicle

• 4W
• 2W and others

Key Target Audience

• Qatar Auto Industries
• Government Bodies & Regulating Authorities

Finance Industry

• Car company
• Automobile dealers and users

Time Period Captured in the Report:

• Historical Year: 2016-2021
• Base Year: 2021
• Forecast Period: 2021- 2026F

Companies Covered:

• Qatar National Bank
• Doha Bank
• Commercial Bank
• Al khaliji commercial bank
• Ahli bank
• Qatar Islamic International Bank
• Qatar Islamic Bank
• Dukhan bank
• Masraf Al Rayan
• HSBC
• Standard Chartered Check
• International Bank of Qatar
• First Finance Company
• Al Jazeera Finance

Key Topics Covered in the Report

• Qatar Automotive Market Overview
• Ecosystem of Qatar Auto Finance Market
• Qatar Auto Finance Value Chain Analysis
• Business Cycle and Timeline of Major Banks in Qatar Auto Finance Market
• Market Sizing Analysis of Qatar Auto Finance Market, 2016-2021
• Qatar Auto Finance Market Segmentation
• SWOT Analysis of Qatar Auto Finance Industry
• Trends and Developments in Qatar Auto Finance Industry
• Decision Making Parameter for Selecting Car Loan Vendor
• Issues and Challenges in Qatar Auto Finance Industry
• Growth Drivers of the Qatar Auto Finance Market
• Government Policies and Initiatives for Qatar Auto Finance Industry
• COVID-19 Impact on Qatar Auto Finance Market
• Competition Framework for Qatar Auto Finance
• Future Outlook and Projections of the Qatar Auto Finance Market
• Market Opportunities and Analyst Recommendations

 

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