Challenges in Growth of Car Finance Omen - Ken Research

Oman Car Finance Market

Oman Car Finance Market is in the growing stage, owing to the increasing interest of people towards owning a vehicle, adoption of digital technologies for car financing and increasing vehicle prices. The Car Finance Industry in Oman is a consolidated market with key players such as Bank Nizwa, National Bank of Oman, Muscat Finance Co. Ltd, United Finance, Maisarah Islamic Banking Services etc.

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Key Market Findings:

Oman Car Finance Market was valued at USD ~ in 2021 and is projected to grow to USD ~ by 2027F, registering a CAGR of ~% during the forecast period (2022P-2027F).
In the last few years, car manufacturing companies have been compelled to increase car prices owing to the inflation of commodity prices.

Digitalizing Car Finance Industry: Financial services companies are implementing digital solutions more swiftly to stay competitive. Block chain, artificial intelligence, digital payment systems, and online mobile banking are the most significant technological changes adopted by financial businesses today to provide customers with the best car financing services. Going digital can also solve a lot of problems while offering real advantages to both parties. The relationship between the dealer and the consumer is cultivated, maintained, and grown as a result of going digital. New breakthroughs in digital and cloud technology have also made it possible for new innovations and trends in car financing. Because of this, auto dealers can now manage every aspect of their financing program. Previously, it took days to process the application manually. However, it only takes a few minutes now because of digitization and technological advancement. Customers can so easily benefit from swift transactions that are hassle-free, contributing to the expansion of the Oman car finance market.

Rise in Demand for Hatchbacks: The rising consumer demand for hatchbacks in Oman is the main factor driving the Car Finance Market in Oman. Due to the increase in automobile consumption, changes in residents’ purchasing attitudes, and advancements in the consumer finance sector, the overall penetration rate of car financing in Oman has increased dramatically when compared to the previous year and it is expected to increase even further.

Rising Demand for Electric Vehicles: Electric vehicles (EVs) have increased in popularity across Oman in recent years due to the necessity to meet future energy and emission demands. It provides a means of decreasing pollution and other greenhouse gas emissions while enhancing energy efficiency. One of the primary causes of this is the demand for transportation that is environmentally friendly. The Oman car finance industry is being significantly boosted by the growing demand for electric automobiles.

Analysts at Ken Research in their latest publication “Oman Car Finance Market Outlook to 2027F- By Booking Mode (Online, Offline), By Ownership of Cars (New Car, Used Car), By Type of Car (Hatchbacks, Sedans, Luxury Cars, Sports Utility Vehicle), By Category of Lenders (NBFCs, Banks, OEMs, Captives), By Loan Tenure (12-24 Months, 25-48 Months, 49-60 Months)” observed that Oman Car Finance Market has shown considerable growth in the last five years. In the upcoming years, it is predicted to expand more rapidly due to emergence of online car finance applications, increasing interest of people towards owning a vehicle, adoption of digital technologies for car financing and increasing vehicle prices. The Car Finance Market in Oman is expected to grow at ~% CAGR over the forecasted period 2022P-2027F.

Key Segments Covered in the report