Saudi Arabia Auto Financing Market

Saudi Arabia Auto Financing Market Overview:

The Saudi Arabia auto financing market size reached USD 2.66 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 5.18 Billion by 2033, exhibiting a growth rate (CAGR) of 6.90% during 2025-2033. Government policies and initiatives, along with digital banking and fintech innovation, are driving the auto financing market. Vision 2030 is improving private sector participation, introducing regulatory changes, and promoting digital-first financial services, making financing more accessible and contributing to the expansion of the Saudi Arabia auto financing market share.

Saudi Arabia Auto Financing Market Trends:

Government Policies and Initiatives

The governing authority is influencing the auto financing sector by enacting policies and initiatives aimed at boosting local production. Under Vision 2030, the governing body is focusing on improving private sector participation and offering incentives for vehicle purchases, leading to a rise in car ownership. Changes in regulations, such as reduced interest rates and more adaptable loan conditions, are enhancing the availability of auto financing for a broader audience. Additionally, the emphasis on increasing individual expenditure and upgrading mobility infrastructure, including the expansion of public transport systems and the improvement of road networks, is creating a positive environment for people to invest in personal vehicles. An evident illustration of this occurred in 2025 when the Saudi Central Bank (SAMA) noted a notable rise in loans from finance firms, which reached $25.67 billion in 2024, which is a 13.6% increase compared to the prior year. This expansion was driven by personal, automotive, and small business financing, with regulatory changes and fintech innovations propelling the industry's growth. The sector's profitability increased notably, demonstrating enhanced financial inclusion in line with the nation's Vision 2030 goals. These advancements demonstrate how the government's strategic initiatives to bolster the auto financing sector are effectively driving individual interest and improving the financial landscape.

Digital Banking and Fintech Innovation

The rapid development of digital banking and fintech innovations is supporting the Saudi Arabia auto financing market growth. The shift towards digital-first financial services is opening new opportunities for people to access loans and financing solutions with greater ease and convenience. This transformation is part of the broader Vision 2030 Financial Services Development Program, which aims to modernize the country’s financial infrastructure. The full public launch of STC Bank and D360 in 2025 marked a pivotal moment in this digital shift. Both digital-only banks are reshaping the banking landscape by leveraging advanced technology to provide seamless, online-based services. D360, for instance, quickly garnered 600,000 users shortly after its launch, showcasing the growing demand for digital banking solutions. STC Bank, on the other hand, is capitalizing on its established STC Pay base to offer easy access to financial services. This trend reflects rising interest in digital banking platforms that offer faster approval processes, lower fees, and more flexible financing options. As more people move toward online financial services, auto financing is becoming increasingly accessible through digital platforms.

Saudi Arabia Auto Financing Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on type, source type, and vehicle type.

Type Insights:

• New Vehicle
• Used Vehicle

The report has provided a detailed breakup and analysis of the market based on the type. This includes new vehicle and used vehicle.

Source Type Insights:

• OEMs
• Banks
• Credit Unions
• Financial Institutions

A detailed breakup and analysis of the market based on the source type have also been provided in the report. This includes OEMs, banks, credit unions, and financial institutions.

Vehicle Type Insights:

• Passenger Cars
• Commercial Vehicles

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes passenger cars and commercial vehicles.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

 Saudi Arabia Auto Financing Market News:

• In May 2025, Hyundai and Saudi Arabia’s Public Investment Fund (PIF) began construction of a vehicle manufacturing plant at the King Salman Automotive Cluster. With a capacity of 50,000 ICE and EV units annually, the project is expected to boost Saudi Arabia’s vehicle financing market. It supports Vision 2030 goals by localizing production and enabling fleet and retail finance expansion.
• In May 2025, Geely Al-Wallan launched limited-time summer financing offers in Saudi Arabia, valid until May 30, 2025. The campaign features monthly installments starting at SAR 689, zero down payment, no interest, and added benefits like cashback, free maintenance, and roadside assistance. A flexible 50/50 payment plan is also available for select models.

Saudi Arabia Auto Financing Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia auto financing market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia auto financing market on the basis of type?
• What is the breakup of the Saudi Arabia auto financing market on the basis of source type?
• What is the breakup of the Saudi Arabia auto financing market on the basis of vehicle type?
• What is the breakup of the Saudi Arabia auto financing market on the basis of region?
• What are the various stages in the value chain of the Saudi Arabia auto financing market? 
• What are the key driving factors and challenges in the Saudi Arabia auto financing market?
• What is the structure of the Saudi Arabia auto financing market and who are the key players?
• What is the degree of competition in the Saudi Arabia auto financing market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia auto financing market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia auto financing market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia auto financing industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.