Marktanalyse - Consumer Automotive Financial Services in Taiwan

Marktanalyse - 'Consumer Automotive Financial Services in South Taiwan'

Consumer Automotive Financial Services in Taiwan investigates the market for automotive financial services linked to sales of new and used passenger cars in Taiwan. In addition to analysing the market for finance and leasing services, the study also covers creditor insurance, motor insurance and road assistance, and demonstrates the extent to which a market exists for extended warranties and GAP insurance. Using survey results for average take-up rates for finance and leasing propositions at the point of sale, data for the size and growth of the automotive finance and leasing market for consumers in Taiwan is provided in terms of gross advances and assets leased for 2007 to 2011 with splits between finance for new and used cars and between finance organised through dealerships at the point of sale and directly with banks or other lending institutions. Moreover, also by means of data for average take-up rates, the markets for creditor insurance, motor insurance, road assistance, extended warranties and GAP insurance are sized in terms of gross written premiums and other revenues sold through the automotive trade (i.e. via dealers and manufacturers) in 2011. These are broken down between new and used cars and between new contracts sold during 2011 and in-force business sold in previous years but still being renewed in 2011. The report draws on a survey of 60 leading car dealerships as well as an analysis of the approach to consumer automotive financial services of 30 automotive brands in Taiwan. The PartnerBASE™ database that accompanies the report details each of the marketing initiatives for consumer automotive financial services traced by Finaccord for both dealers and manufacturers. Together, the report and database will provide you with the definitive guide to current and future opportunities in consumer automotive financial services in Taiwan.

Inhaltsverzeichnis Marktanalyse 'Consumer Automotive Financial Services in South Taiwan'



TABLE OF CONTENTS

0.0 EXECUTIVE SUMMARY .. 1

1.0 INTRODUCTION 3

What is this report about? .... 3

The focus of the report is on financial services related to the sale of passenger cars to individuals . 3

Rationale . 3

The provision of financial services is essential to support both car sales and profitability... .... 3

… with huge diversity in these services between countries and products…... 3

… which have yet to be explored in detail . 3

Methodology 4

Survey of dealers and manufacturers ... 4

Market data ... 2

Computation of market data is based on a complex set of assumptions and variables… . 2

…in order to provide market segmentations in unrivalled detail .. 2

Definitions .... 2

Finance and leasing products 2

Insurance, warranty and assistance products 3

Captive, internal and tied providers . 3

Abbreviations 4

PartnerBASE™ 4

Finaccord 4

2.0 MARKET ANALYSIS .. 6

Introduction .. 6

Passenger vehicle data .. 7

New car sales bounced back after being hit during the global economic crisis… .... 7

…as did used car sales .... 7

Japanese brands manufactured in Taiwan dominate the market for new car registrations .... 9

Consumer automotive finance and leasing market ... 10

Market size and growth .. 10

Point-of-sale finance for both new and used cars has gained in importance in recent years… . 10

...while car sales paid for in cash have registered slower growth ... 10

The value of finance and leasing contracts reached a new high in 2011 . 11

Types of finance and leasing product . 13

A relatively large number of customers use hire purchase agreements .. 13

Consumer automotive insurance, warranty and assistance markets .... 14

Market sizes 14

Motor insurance clearly leads the market for automotive, warranty and assistance products in Taiwan . 14

Types of motor insurance policy .... 17

Taiwanese drivers frequently take out more than liability cover 17

Automotive dealer survey .. 18

Provision of consumer automotive financial services . 18

All dealers interviewed offer finance or leasing… ... 18

… but none sell creditor insurance as Taiwanese borrowers are unlikely to default on their car loans .... 18

Number and nature of schemes .... 19

Finance / leasing and motor insurance are more frequently offered through tied than non-tied providers .... 19

Consumer uptake of automotive financial services .... 21

A high proportion of new car buyers in Taiwan takes out motor insurance from their dealers ... 21

Competitor dynamics: dealer partnerships ... 23

Finance and leasing: no finance provider accounts for more than 20% of partnerships with dealers . 23

Motor insurance: Fubon Insurance is the most frequently used non-tied provider . 25

Extended warranties: more than one in every five dealers are offering extended warranties .... 27

Road assistance: nearly all dealers offer road assistance in one form or another .. 28

Automotive manufacturer brand survey . 28

Provision of consumer automotive financial services . 28

Weighted provision rates for manufacturers tend to be very high for finance / leasing and motor insurance 28

Competitor dynamics: manufacturer brand partnerships 30

Finance and leasing: most manufacturer brands in Taiwan offer finance and leasing 30

Motor insurance: most manufacturer brands work with multiple partners 32

Extended warranties: several manufacturer brands promote extended warranties in Taiwan... 34

Road assistance: 24TMS is a major provider of road assistance in Taiwan . 34







Tabellenverzeichnis Marktanalyse 'Consumer Automotive Financial Services in Taiwan'



LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY .. 1

Key market data for consumer automotive financial services in Taiwan, 2011 . 2

1.0 INTRODUCTION 3

Dealers contacted by Finaccord, segmented by manufacturer group affiliation 4

2.0 MARKET ANALYSIS .. 6

Passenger car parc and new / used passenger car sales in Taiwan, 2007 to 2011 ... 7

Passenger car parc and new / used passenger car sales in Taiwan, 2007 to 2011 (data) .. 8

New car registrations in Taiwan, segmented by manufacturer brand, 2010 9

New / used passenger car finance market in Taiwan, segmented by distribution channel: volumes, 2007 to 2011 .. 10

New / used passenger car finance market in Taiwan, segmented by distribution channel: values, 2007 to 2011 . 11

New / used passenger car finance market in Taiwan, segmented by distribution channel: values and volumes, 2007 to 2011 (data) .. 12

% split between the different types of finance and leasing contract sold at the point of sale in Taiwan, 2011 13

Total revenues from consumer automotive insurance, warranty and assistance markets in Taiwan, 2011 15

Total revenues from consumer automotive insurance, warranty and assistance contracts in Taiwan, 2011 (data) 16

% split between the different types of motor insurance policy sold at the point of sale in Taiwan, 2011 .... 17

% of dealers in Taiwan offering each type of automotive financial service, 2011 18

Average number of tied and non-tied schemes offered by dealers in Taiwan for each type of automotive financial service, 2011 ... 20

Average number of tied and non-tied schemes offered by dealers in Taiwan for each type of automotive financial service, 2011 (data) ... 20

% of new and used car purchasers in Taiwan acquiring each type of automotive financial service at the point of sale, 2011 .... 22

Provision of finance and leasing by dealers in Taiwan, 2011: provision rate, product sources and provider share of non-tied partnerships . 24

Provision of motor insurance by dealers in Taiwan, 2011: provision rate, product sources and provider share of non-tied partnerships . 26

Provision of extended warranties by dealers in Taiwan, 2011: provision rate and product sources . 27

Provision of road assistance by dealers in Taiwan, 2011: provision rate and product sources ... 28

Comparison of the provision of each type of automotive financial service by manufacturer brands and dealers in Taiwan, 2011 29

Provision of finance and leasing by manufacturer brands in Taiwan, 2011: provision rate, operating models and weighted provider share of partnerships .... 31

Provision of motor insurance by manufacturer brands in Taiwan, 2011: provision rate, operating models and weighted provider share of partnerships .. 33

Provision of extended warranties by manufacturer brands in Taiwan, 2011: provision rate and operating models .. 34

Provision of road assistance by manufacturer brands in Taiwan, 2011: provision rate, operating models and weighted provider share of partnerships .. 35

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