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In the first half of 2024, the Italian Automotive sector recorded a significant increase in the use of credit, both through finalized loans and leasing, with a growth of 7.7% compared to the same period of 2023. This positive trend is also reflected in the average amounts disbursed, increased by 5.7%, which stands at an average value of approximately 20,400 euros. These increases are correlated to the recovery of the registration market: +5.4% for new cars and an even more marked +8.4% for the used market. These are some of the findings that emerged in Market Outlook sulla Mobility made by Crifa global company specialized in the management of credit and business information systems, which periodically provides a snapshot of the main indicators relating to the trend of credit to private individuals, sole proprietorships and Italian joint-stock companies, developed on the basis of the information assets of the Information System Credit Eurisc. Despite the slight increase in insolvencies, which went from 0.9% to 1%, the level of risk remains limited and lower than other types of consumer credit. The marked declines in recent months, from July to October, could change the picture. But making predictions is more difficult than ever.
«At an Italian and European level – he comments Simone Capecchiexecutive director of Crif – the Automotive is certainly facing one of the most complex and difficult periods to interpret with a view to a general relaunch. From our dedicated credit observatory we note a positive trend regarding the car financing and leasing sector, with growth in the first 6 months of the year which can be considered as an injection of confidence for the sector. The level of credit risk in the automotive sector is increasing slightly but remains largely under control.” A trend that should be confirmed at the end of the year. «There should be no significant worsening in terms of risk; if we consider that the risk remained contained even in the months of increase in interest rates and the expectations are for further cuts”, specifies Capecchi.
According to Eurisc data, the positive trend of the first six months mainly involved joint-stock companies (which account for 22.5%), with an increase of 8.9% in loans disbursed, while individual businesses (6, 8%) show a contraction of 2.5%. The average amount of financing for companies stands out for being higher, reaching 31,300 euros, compared to the average 17,200 euros for private individuals (which accounts for 70.9%).
Crif, banks and insurance companies are increasingly looking for quality data
The captive and specialized companies, i.e. financiers linked to car manufacturers, consolidate their leadership position, gaining a 2% market share in the new car segment. These entities account for 83% of financing in the new sector, while generalist finance companies stop at 46%. This dynamic reflects a greater specialization and ability to adapt among captive and specialized companies (65% of the market) compared to generalists (35%), who appear to be affected by greater competition in the used segment. “The captive – observes Capecchi again – they represent a rewarding sales model in which car and finance coincide. Furthermore, they are stronger on the new market, and registrations in Italy in 2023 and the first half of ’24 went well.”
In contrast to the car credit market, the rental recorded a contraction of 8%. This decline represents a reversal of the trend compared to the stability of previous years. Rental disbursements are largely concentrated on joint-stock companies, which represent over 75% of the total financed. Among private individuals, customers over 50 years old prevail. The decline in rentals could indicate a settling-in phase for alternative mobility formulas, making a more targeted market strategy by sector operators essential.
**PAA Focus: Consumer Impact:** How do the increasing interest rates and shift towards specialized financing companies mentioned in the Crif report potentially impact consumer affordability and choice in the Italian automotive market?
## World Today News Interview: Navigating the Shifting Landscape of Automotive Financing
**Introduction:**
Welcome to World Today News. Today, we’re diving deep into the latest trends shaping the Italian automotive sector. Joining us are two experts: [Guest 1 Name], a leading analyst at [Guest 1 Organization], and [Guest 2 Name], a seasoned economist specializing in consumer finance.
**Section 1: A Resurgence in Credit – Optimism or Precarious Confidence?**
* **Host:** The Crif report highlights a significant 7.7% increase in car credit utilization in the first half of 2024. This is encouraging news, but how sustainable is this growth, especially given the notoriously unpredictable nature of the automotive market? [Guest 1, can you elaborate on the factors driving this increased demand for credit?]
* **Host:** Simone Capecchi mentions “an injection of confidence” into the sector. Do you agree with this assessment? What are the broader economic indicators that might be supporting or undermining this confidence? [Guest 2, what is your perspective on the current economic climate and its potential impact on future demand?]
**Section 2: The Rise of Specialization – Das Kapital Meets the Quattro porte**
* **Host:** The article points to “captive” and specialized finance companies gaining market share. Can you explain what sets these companies apart from traditional, generalist finance institutions? [Guest 1, what are the key advantages that captive finance companies offer both to consumers and car manufacturers?]
* **Host::** Does this trend towards specialization pose a threat to smaller, independent finance companies? How might generalist lenders adapt to this shifting competitive landscape? [Guest 2, what are the implications of this market dynamic for consumers in terms of choice and affordability?]
**Section 3: The EV Factor – Accelerating Towards a Sustainable Future (or a Speed Bump Ahead?)**
* **Host:** The report doesn’t directly address the electric vehicle market. Given the significant growth in EV adoption, how do you see this trend impacting the financing landscape in the coming years? [Guest 1, what specific challenges or opportunities do electric vehicles present for both lenders and borrowers?]
* **Host:** With the potential shift towards subscription models and alternative mobility solutions, are we seeing a fundamental change in how people access and finance transportation? [Guest 2, how do these emerging trends factor into the overall picture for the automotive finance sector?]
**Section 4: Looking Ahead – Navigating Uncertainty in the Automotive Landscape**
* **Host:** The article mentions “marked declines” in recent months. This suggests a degree of volatility. What are the biggest risks and opportunities facing the Italian automotive finance sector in the second half of 2024 and beyond? [Guest 1, what strategies could help both lenders and borrowers navigate these uncertainties?]
* **Host:** how would you characterize the overall health of the Italian automotive market? Are we witnessing a sustainable rebound, or should we brace ourselves for further turbulence? [Guest 2, what are your key takeaways from this data, and what advice would you offer to players in this sector?]
**Closing:** Thank you both for sharing your insights. This has been a fascinating discussion highlighting the complex dynamics at play in the Italian automotive finance sector. For our viewers seeking more in-depth information, we encourage you to read the full Crif report linked below.
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