1. Market Research
  2. > Financial Services
  3. > Insurance Market Trends
  4. > Consumer Automotive Financial Services in Ukraine

Consumer Automotive Financial Services in Ukraine

  • June 2013
  • -
  • Finaccord
  • -
  • 57 pages

Consumer Automotive Financial Services in Ukraine investigates the market for automotive financial services linked to sales of new and used passenger cars to individual buyers in Ukraine. In addition to analysing the market for finance and leasing services, the study also covers creditor insurance, motor insurance, road assistance, extended warranties, prepaid service contracts 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 Ukraine is provided in terms of gross advances and assets leased for 2008 to 2012 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 prepaid service contracts are sized in terms of gross written premiums and other revenues sold through the automotive trade (i.e. via dealers and manufacturers) in 2012. These markets, estimated to be worth UAH 789.2 million (about EUR 73.5 million) in total in 2012, are broken down between new and used cars, and between new contracts sold during 2012 and in-force business sold in previous years but still being renewed in 2012.

The report draws on a survey of 50 leading car dealerships as well as an analysis of the approach to consumer automotive financial services of 42 car manufacturer brands in Ukraine. The PartnerBASE™ dataset that accompanies the report details each of the marketing initiatives for consumer automotive financial services traced by Finaccord for both dealers and manufacturers; a market data annexe is also available in a convenient spreadsheet format so that there is no need to re-enter key data points from the report.

In addition to captive finance companies owned by manufacturer brands, organisations covered by the report include Arsenal, AXA, Crédit Agricole, Finance & Credit Bank, Garant Assistance, Ingo, OTP, SOS Service Ukraine, UkrAssist and UniCredit. Together, the report and database will provide you with the definitive guide to current and future opportunities in consumer automotive financial services in Ukraine.

Table Of Contents

Consumer Automotive Financial Services in Ukraine
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
This report offers a detailed updated analysis of the subject in Ukraine based on primary research 3
Methodology 3
Survey of dealers and manufacturers 3
Market data 5
Computation of market data is based on a complex set of assumptions and variables… 5
…in order to provide market segmentations in unrivalled detail 5
External sources 6
Definitions 6
Finance and leasing products 6
Insurance, warranty and assistance products 7
Operating models 8
Tied and non-tied providers 8
Abbreviations 8
Exchange rate 9
PartnerBASE and market data annexe 9
Finaccord 9

2.0 MARKET ANALYSIS 11

Introduction 11
Passenger vehicle data 12
Sales of both new and used cars have staged a recovery since the nadir reached in 2009 12
Hyundai has displaced AvtoVAZ as Ukraine's leading manufacturer group 13
Consumer automotive finance and leasing market 14
Market size and growth 14
Ukraine's market for private car finance has displayed extreme volatility in recent years 14
caused by the fluctuating willingness of banks to lend to consumers as well as by trends in car sales 15
Types of finance and leasing product 17
Loans with no option to return the car are the dominant form of private car finance in Ukraine 17
Consumer automotive insurance, warranty and assistance markets 18
Market sizes 18
In total, the automotive trade is likely to have sold contracts worth close to 800 million in 2012 18
Survey of automotive dealers and manufacturer brands - overview 21
Introduction 21
Provision of consumer automotive financial services 22
Extended warranties and prepaid service contracts have been introduced to Ukraine's market 22
Number and nature of dealer schemes 24
Dealers in Ukraine commonly work with multiple partners for finance and leasing 24
with the average number having increased slightly since the previous investigation 24
Types of creditor insurance policy sold by dealers 27
A majority of dealers only distribute policies that cover life and disability 27
Types of motor insurance policy sold by dealers 28
Most motor insurance policies sold through dealers include both liability and other types of cover 28
Sources of road assistance distributed by dealers 29
Road assistance is commonly bundled with motor insurance but not with other products 29
Consumer uptake of automotive financial services through dealers 30
Take-up rates for point-of-sale finance in Ukraine have increased dramatically in recent years 30
while those for motor insurance have also moved up quite significantly 30
Survey of automotive dealers and manufacturer brands - partnerships 32
Introduction 32
Finance and leasing 33
Over 20 non-tied providers compete for business through car dealerships in Ukraine 33
Manufacturer brands (or their importers) frequently work with multiple preferred providers 35
which results in a fragmented supply structure 35
within which Credit Agricole claims the highest weighted share of partnerships 35
Across all types of provider, the leading firm has an implied market share of new business of 16.5% 37
Creditor insurance 38
UkrAVTO is unusual in owning a captive underwriter of creditor insurance 38
Motor insurance 39
As non-tied providers, Ingo, Arsenal and VUSO are the most prominent competitors 39
with AXA claiming this mantle as a tied provider, followed by two captive underwriters 41
Extended warranties 43
Few dealers intermediate extended warranties and those that do tend to stick to tied propositions 43
A handful of manufacturer brands have introduced extended warranty programs 44
The combined analysis incorporates one non-tied provider 46
Road assistance 47
Most dealers only intermediate road assistance organised by manufacturer brands (or their importers) 47
SOS Service Ukraine holds the highest weighted share of manufacturer brand partnerships 48
albeit half a dozen other competitors are also visible 48
Prepaid service contracts 50
Prepaid service contracts remain at a very early stage of development in Ukraine 50
with the concept having been launched by just three manufacturer brands 51



LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY 1

Key market data for consumer automotive financial services in Ukraine, 2012 2

1.0 INTRODUCTION 3

2.0 MARKET ANALYSIS 11

Passenger car parc and new / used passenger car sales in Ukraine, 2008 to 2012 12
Passenger car parc and new / used passenger car sales in Ukraine, 2008 to 2012 (data) 13
New car registrations in Ukraine, segmented by manufacturer group, 2012 13
New and used passenger car finance market in Ukraine, segmented by distribution channel: volumes, 2008 to 2012 14
New and used passenger car finance market in Ukraine, segmented by distribution channel: values, 2008 to 2012 15
New and used passenger car finance market in Ukraine, segmented by distribution channel: values and volumes, 2008 to 2012 (data) 16
% split between the different types of finance and leasing contract organised at the point of sale in Ukraine, 2013 17
Total revenues from consumer automotive insurance, warranty, assistance and service contract markets in Ukraine, 2012 19
Total revenues from consumer automotive insurance, warranty assistance and service contracts in Ukraine, 2012 (data) 20
Comparison of the provision of each type of automotive financial service by dealers and manufacturer brands in Ukraine, 2013 23
Average number of tied and non-tied schemes organised by dealers for each type of automotive financial service in Ukraine, 2013 25
Average number of tied and non-tied schemes organised by dealers for each type of automotive financial service in Ukraine, 2013 (data) 26
% split between the different types of creditor insurance policy sold at the point of sale in Ukraine, 2013. 27
% split between the different types of motor insurance policy sold at the point of sale in Ukraine, 2013 28
% availability of road assistance through factory warranties, extended warranties, motor insurance, prepaid service contracts and as a stand-alone product in Ukraine, 2013 29
% of new and used car purchasers acquiring each type of automotive financial service at the point of sale in Ukraine, 2013 31
Provision of finance and leasing by dealers in Ukraine, 2013: provision rate, product sources and provider share of non-tied partnerships 34
Provision of finance and leasing by manufacturer brands in Ukraine, 2013: provision rate, operating models and weighted provider share of partnerships 36
Implied market shares of new business for finance and leasing in Ukraine, 2013 37
Provision of creditor insurance by manufacturer brands in Ukraine, 2013: provision rate and operating models 38
Provision of motor insurance by dealers in Ukraine, 2013: provision rate, product sources and provider share of non-tied partnerships 40
Provision of motor insurance by manufacturer brands in Ukraine, 2013: provision rate, operating models and weighted provider share of partnerships 42
Provision of extended warranties by dealers in Ukraine, 2013: provision rate and product sources 43
Provision of extended warranties by manufacturer brands in Ukraine, 2013: provision rate, operating models and weighted provider share of partnerships 45
Implied market shares of new business for extended warranties in Ukraine, 2013 46
Provision of road assistance by dealers in Ukraine, 2013: provision rate and product sources 47
Provision of road assistance by manufacturer brands in Ukraine, 2013: provision rate, operating models and weighted provider share of partnerships 49
Provision of prepaid service contracts by dealers in Ukraine, 2013: provision rate and product sources 50
Provision of prepaid service contracts by manufacturer brands in Ukraine, 2013: provision rate, operating models and weighted provider share of partnerships 52

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Amrita

+1 718 303 2019

Purchase Reports From Reputable Market Research Publishers
Fraud Detection and Prevention Market by Solution, Application Areas, Service, End-User, Vertical - Global Forecast to 2021

Fraud Detection and Prevention Market by Solution, Application Areas, Service, End-User, Vertical - Global Forecast to 2021

  • $ 7150
  • Industry report
  • September 2016
  • by MarketsandMarkets

“Rapid increase in mobile banking will drive the FDP market” The Fraud Detection and Prevention (FDP) market size is estimated to grow from USD 14.36 billion in 2016 to USD 33.19 billion by 2021, at ...

Business Process Management Market Analysis By Solution, By Application, By Deployment, By End-User And Segment Forecasts To 2024

Business Process Management Market Analysis By Solution, By Application, By Deployment, By End-User And Segment Forecasts To 2024

  • $ 4950
  • Industry report
  • August 2016
  • by Grand View Research

The global business process management (BPM) market is expected to reach USD 23.04 billion by 2024, according to a new study by Grand View Research, Inc. The growth is attributed to the increasing numbe ...

Customer Experience Management Study—Malaysia’s Life Insurance Market, 2015

Customer Experience Management Study—Malaysia’s Life Insurance Market, 2015

  • $ 4950
  • Industry report
  • September 2016
  • by Frost & Sullivan

Benchmarking the Industry Excellence in Delivering Superior Customer Experience Customer experience is the accumulation of customers’ experiences throughout their journey with the supplier, across any ...


ref:plp2013

Reportlinker.com © Copyright 2016. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.