AUTOMOTIVE FINANCE AND LEASING FOR CONSUMERS IN POLAND PERSPECTIVE OF DEVELOPMENT

Transcription

1 AUTOMOTIVE FINANCE AND LEASING FOR CONSUMERS IN POLAND PERSPECTIVE OF DEVELOPMENT Author: Dominik Fijałkowski Sales Director - Head of Consumer Lease Project Raiffeisen-Leasing Polska S.A. dominik.fijalkowski@raiffeisen.pl

2 INTRODUCTION Changes of new legal acts in Poland, gives the possibility to introduce a new financial service for the private individuals. This kind of product has been so far not possible to apply in Polish financial market.

3 PASSENGER VEHICLE DATA IN EUROPE Europe s passenger car amount is characterized by slow but predictable growth. Between 2006 and 2010, the size of the passenger car quantity in the 26 countries in Europe considered in this study increased from million to an estimated million, thereby demonstrating average annual growth of 2.3%. When broken out by region, the highest average growth per annum has been recorded in Eastern and South- Eastern Europe at 5.8% followed by Northern and Central Europe (2.1%) and Southern and Western Europe (1.0%). As for the individual countries themselves, over the time period in question, the Romanian market grew at the fastest average rate per annum of 9.6% while the UK market made the least progress, given a corresponding value of 0.2%.

4 PASSENGER VEHICLE DATA IN EUROPE NEW CARS The market for new passenger car sales, including sales to fleet and commercial customers, decreased overall at an average rate per annum of 3.8% from million in 2006 to an estimated million in 2010, having peaked at million in 2007.

5 PASSENGER VEHICLE DATA IN EUROPE NEW CARS CONSUMER PARTICIPATION Considering the three distinct regions taking into account sales of new passenger cars one could differentiate is to consider sales made to individual consumers as a % of total new car sales, which also include commercial customers and fleet buyers.

6 PASSENGER VEHICLE DATA IN EUROPE USED CARS

7 MARKET FOR AUTOMOTIVE FINANCE AND LEASING FOR CONSUMERS IN EUROPE The market for automotive finance and leasing for consumers in Europe was worth approximately EUR billion in The market shrank by 10.6% compared to its value in 2006, under the impact of the economic crisis. The decrease in the segment of the market has to be analyzed according to age of vehicle, distribution channel and financing method. The decrease in new vehicle segment was much higher than in the segment of used ones.

8 MARKET FOR AUTOMOTIVE FINANCE AND LEASING FOR CONSUMERS IN EUROPE TYPE OF FINANCIAL PRODUCT OFFERED TO THE CONSUMER The results show that loans account for more than 50% of the total in 19 of the 26 countries investigated, namely Austria, Belgium, Croatia, Denmark, Finland, France, Germany, Greece, Hungary, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Turkey and Ukraine. In contrast, financial leasing accounts for over a half of business in Bulgaria, the Czech Republic, Romania, Slovenia and Switzerland, while Ireland and the UK are unique by virtue of the fact that more than 50% of the market is composed of hire purchase contracts in these two countries.

9 VEHICLE MARKET IN POLAND Consumer market is completely different than the market for companies. We should distinguish it from the view of the vehicle's age and preferences for the selection of the model. The analysis shows that the consumer market in only 19% focused on new vehicles. While the business market, as many as 92% share of new vehicles.

10 VEHICLE MARKET IN POLAND PURCHASING GROUPS MARKET SHARE An entrepreneur market shows that, depending on the age of the subject share of financial institutions is different. The biggest competition exist in the market for new vehicles. It is likely that a similar division of the market will take place in financing of vehicles for consumers.

11 VEHICLE MARKET IN POLAND CONSUMER S BRAND PREFERENCES Very important element in the market for consumers is to identify appropriate preferences in the choice of brand. The analysis shows that the market is different for new cars and used cars. The most popular brand for the consumer in new cars segment is Fiat while in the segment of used cars Volkswagen is a leader. CONSUMER TOP 25 - NEW CARS CONSUMERS TOP YEARS CARS TATA SUBARU VOLVO AUDI BMW MERCEDES-BENZ MAZDA SEAT DACIA SUZUKI CHEVROLET MITSUBISHI HONDA NISSAN FORD PEUGEOT KIA CITROEN HYUNDAI VOLKSWAGEN RENAULT SAAB CHRYSLER ALFA ROMEO IVECO MITSUBISHI KIA HYUNDAI HONDA NISSAN VOLVO SUZUKI SKODA FIAT MAZDA SEAT BMW MERCEDES-BENZ CITROEN TOYOTA PEUGEOT AUDI TOYOTA FORD OPEL RENAULT SKODA OPEL FIAT VOLKSWAGEN

12 VEHICLE MARKET IN POLAND FINANCIAL INSTITUTIONS MARKET SHARE New cars -% financing Used cars -% of financing UKRAINE UNITED KINGDOM TURKEY SWITZERLAND SWEDEN SPAIN SLOVENIA RUSSIA ROMANIA PORTUGAL POLAND NORWAY NETHERLANDS ITALY IRELAND HUNGARY GREECE GERMANY FRANCE FINLAND DENMARK CZECH REPUBLIC CROATIA BULGARIA BELGIUM AUSTRIA 32% 44% 61% 78% 85% 82% 83% 84% 82% 90% 90% 87% 90% 87% 91% 89% 91% 88% 92% 89% 90% 91% 89% 96% 96% 0% 20% 40% 60% 80% 100% 97% AVERAGE: 84% UKRAINE 10% WUNITED KINGDOM 49% TURKEY 60% SWITZERLAND 61% SWEDEN 56% SPAIN 55% SLOVENIA 69% RUSSIA 30% ROMANIA 43% PORTUGAL 66% POLAND 59% NORWAY 55% NETHERLANDS 57% ITALY 54% IRELAND 24% HUNGARY 44% GREECE 45% GERMANY 64% FRANCE 58% FINLAND 43% DENMARK 50% CZECH REPUBLIC 56% CROATIA 65% BULGARIA 56% BELGIUM 55% AVERAGE: 52% AUSTRIA 56% 0% 20% 40% 60% 80% 100%

13 VEHICLE MARKET IN POLAND DEALER S SHARE IN FINANCING New cars -% dealer s share Used cars -% dealer s share UKRAINE UNITED KINGDOM 63% 57% UKRAINE UNITED KINGDOM 0% 47% TURKEY 82% TURKEY 34% SWITZERLAND SWEDEN SPAIN SLOVENIA 57% 56% 70% 87% SWITZERLAND SWEDEN SPAIN SLOVENIA 23% 37% 42% 55% RUSSIA 66% RUSSIA 23% ROMANIA PORTUGAL POLAND 57% 59% 64% ROMANIA PORTUGAL POLAND 12% 30% 48% NORWAY 46% NORWAY 35% NETHERLANDS ITALY IRELAND HUNGARY 32% 33% 36% 65% NETHERLNDS ITALY IRLELAND HUNGARY 25% 36% 19% 28% GREECE GERMANY FRANCE 45% 63% 59% GREECE GERMANY FRANCE 35% 43% 27% FINLAND DENMARK 32% 50% FINLAND DENMARK 19% 67% CZECH REPUBLIC 52% CZECH REPUBLIC 21% CROATIA BULGARIA BELGIUM AUSTRIA 52% 49% 83% CROATIA 47% 85% BULGARIA 21% BELGIUM 19% AVERAGE: 58% AVERAGE: 31% AUSTRIA 23% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

14 Social survey - for the Polish Leasing Association by INDICATOR Did you hear about consumer leasing institutions? Where did you hear about consumer leasing institutions N=950 29% Internet ,3 press 45,3 71% TV friends/family 24,7 20,8 bank 20,3 radio 17,3 yes no leasing institution 16,8 leaflet 10,0 purchase place other 9,6 10,0 N=268** IN %

15 Social survey - for the Polish Leasing Association by INDICATOR Would you be interested in consumer leasing? What kind of goods would you like finance by consumer leasing? 0,0 20,0 40,0 60,0 80,0 100,0 N=950 vehicles 88,5 home appliances 38,8 32,6% IT machinery 16,2 38,3 51,1% other 4,8 16,3% N=306 yes no do not know IN %

16 CONCLUSIONS Great potential for development of consumer leasing market in Poland Long-term opportunity for growth in registrations of new vehicles Developed financial services market in Poland in terms of new cars and used Expanded distribution channels (dealer) in Poland, both in the area of new cars and used

17 THANK YOU FOR YOUR ATTENTION Dominik Fijałkowski