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Extended Warranties for New and Used Cars in Emerging Global Markets
Extended Warranties for New and Used
Cars in Emerging Global Markets
Report prospectus
March 2012
Expertise in financial services
© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
1
Extended Warranties for New and Used Cars in Emerging Global Markets
Prospectus contents
Page
What is the research?
What methodology has been used?
How do dealership surveyed break down?
Which manufacturer brands have been investigated?
What is the report structure?
What are the key features of the research?
How can the research be used?
How can the PartnerBASE™ be used?
Who can use the research?
What are some of the key findings?
What is the cost and format?
How can the research be purchased?
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© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
2
Extended Warranties for New and Used Cars in Emerging Global Markets
What is the research?
Finaccord’s report titled Extended Warranties for New and Used Cars in Emerging Global Markets
investigates the market for extended warranties linked to sales of new and used passenger cars to
consumers in ten important global markets. In total, Finaccord has calculated this sector across all
ten countries to have been worth in the region of USD 615 million in 2011 in gross written premiums
and other revenues.
Based on a survey of 765 dealers in Argentina, Brazil, China, India, Indonesia, Mexico, South
Africa, South Korea, Taiwan and Thailand plus an investigation typically covering between 30 and
40 automotive brands in each country, the study delivers unique insights into the market for
extended warranties for passenger cars bought by consumers, with fully comparable and
standardised market values split between new and used cars.
In addition to this market data, the survey measures the propensity of dealers to work with
independent extended warranty providers as well as those tied to manufacturers and importers; it
reports on customer take-up rates for extended warranties at the point of sale; it identifies the
leading non-tied providers used at the point of sale; and it describes the partnerships in place
between manufacturers or importers and extended warranty providers.
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© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
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Extended Warranties for New and Used Cars in Emerging Global Markets
What methodology has been used?
Finaccord’s survey of dealerships in emerging global markets was carried out between November
2011 and January 2012. The research embraces the following information:
• whether extended warranties are marketed to purchasers of new and used vehicles;
• if so, how many providers are used?
• if so, what are the identities of the providers used?
• if so, how do these differ between manufacturer-branded providers and independent suppliers?
• if so, what are the average take-up rates for buyers of new and used cars?
The results of this research provide unique data for dealer penetration rates, operating models,
provider share of partnerships, and both average and overall customer take-up rates for extended
warranties in each country.
Moreover, Finaccord’s manufacturer brand survey pinpoints programs for extended warranties
organised by manufacturers or their local importers in each country, identifying the extent to which
these are offered through captive entities or in association with external partners. As such, this
constitutes a unique report with an unrivalled level of detail about countries that are key to the future
of the automotive industry.
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© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
4
Extended Warranties for New and Used Cars in Emerging Global Markets
How do dealerships
surveyed break down?
Taiwan,
7.8%
China, 13.1%
South Africa,
7.8%
Indonesia,
8.5%
Multimarque,
25.6%
Toyota, 8.8%
Volkswagen,
5.8%
Hyundai,
5.6%
India, 12.0%
Chevrolet,
5.1%
Maruti
Suzuki, 5.0%
Thailand,
9.2%
Brazil, 10.8%
Argentina,
9.8%
South Korea,
10.5%
Mexico,
10.5%
Honda, 4.8%
Ford, 4.7%
Nissan, 3.9%
Other
groups,
25.0%
Mitsubishi,
2.6%
Fiat, 3.1%
Finaccord’s universe of dealerships includes 765 respondents in total spread across ten important
emerging markets including manufacturer-owned dealerships, franchised dealerships, multi-marque
dealerships and new and used car supermarkets. For a full list of the organisations contacted for the
research and included in PartnerBASE™, please contact Finaccord.
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© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
5
Extended Warranties for New and Used Cars in Emerging Global Markets
Which manufacturer brands
have been investigated?
Manufacturer brands investigated through the local offices of the manufacturers themselves or those
of their importers in at least one of the countries covered in this report are as follows:
Acura
Chery
Geely
Jinbei
MG
Škoda
Alfa Romeo
Chevrolet
Gleagle
Karry Auto
MINI
Smart
Alpheon
Chrysler
Great Wall
Kia
Mitsubishi
Soueast Motor
Aston Martin
Citroën
Hafei Automobile
Lamborghini
Nissan
Spyker
Audi
Daihatsu
Haima
Land Rover
Opel
SsangYong
Baojun
Dodge
Hawtai
Landwind
Peugeot
Subaru
Bentley
Effa
Hindustan Motors
Lexus
Porsche
Suzuki
Besturn
Emgrand
Honda
Liebao
Proton
Tata Motors
BMW
Englon
Hongqi
Lifan Motors
Ram
Tobe
Buick
FAW
Hyundai
Lincoln
Rely
Toyota
BYD
Fengshen
Infiniti
Luxgen
Renault
Troller
Cadillac
Ferrari
Isuzu
Mahindra & Mahindra
Renault Samsung
Volkswagen
Chana
Fiat
JAC
Maruti Suzuki
Riich
Volvo
Changan
Force Motors
Jaguar
Maserati
Roewe
WuLing
Changfeng
Ford
Jeep
Mazda
Saab
Zhonghua
Changhe
FXauto
Jiangling
Mercedes-Benz
Seat
Zotye Auto
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© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
6
Extended Warranties for New and Used Cars in Emerging Global Markets
What is the report structure?
0. Executive Summary: providing a concise evaluation of the principal findings of the report.
1. Introduction: offering a rationale, a detailed description of methodology and definitions.
2. Overview: including an overview of the market for providing extended warranties in conjunction
with the purchase of new and used passenger vehicles across the ten countries. Analyses include:
trends in sales of new and used passenger vehicles; comparison of key metrics describing the
behaviour of dealers in this market; comparison of average customer take-up rates for point-of-sale
extended warranties; and calculation of the market size, in terms of gross written premiums and
other revenues in each country, for extended warranties for new and used cars.
3. Argentina: an in-depth analysis of the market for extended warranties for new and used cars in
Argentina including: an overview of the market for new and used passenger cars; dealer survey
results including analysis of the use of extended warranty programs branded or endorsed by
manufacturers as opposed to policies provided by independent warranty providers; and
manufacturer / importer survey results, including identification of partners used for branded or
endorsed extended warranty schemes.
4 - 12: Brazil, China, India, Indonesia, Mexico, South Africa, South Korea, Taiwan and Thailand (for all, contents as for Argentina).
Expertise in financial services
© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
7
Extended Warranties for New and Used Cars in Emerging Global Markets
What are the key features of the research?
Key features of this report include:
• comparable and standardised data concerning extended warranties for new and used cars
covering a total of ten major emerging economies, ranging from relatively well-established
automotive markets such as Mexico, South Korea and Taiwan to fast-developing ones such as
China and India;
• provision of hitherto unpublished market size and segmentation data for all of these markets
generated from Finaccord’s proprietary European Automotive Financial Services Model;
• unique analysis of the provision and uptake of extended warranties at the point of sale, including
the average number of providers used by dealers, the degree to which dealers collaborate with nontied companies in addition to tied partners, and average customer take-up rates;
• in both the report and the accompanying PartnerBASE™ database, identification of non-tied
providers of extended warranties used by dealerships;
• in both the report and the accompanying PartnerBASE™ database, identification of partnerships
between manufacturers or importers and extended warranties
Expertise in financial services
© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
8
Extended Warranties for New and Used Cars in Emerging Global Markets
How can the research be used?
You may be able to use this report and the PartnerBASE™ that accompanies it in one or more of
the following ways:
• understand the current size and future potential of the market for extended warranties in ten of the
most important growth economies in the world;
• appreciate how this opportunity breaks down between extended warranties for new and used
cars;
• benchmark the degree of competitive intensity recorded for distributing extended warranties
through the point of sale, and see where dealers are most open to working with non-tied partners;
• identify the foremost competitors in each country: have international companies such as Allianz,
Assurant, AXA, MAPFRE and The Warranty Group established themselves in each market, or do
national providers predominate?
• evaluate the potential for establishing partnerships with manufacturers and importers for branded
or endorsed extended warranty schemes across these ten key markets.
Expertise in financial services
© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
9
Extended Warranties for New and Used Cars in Emerging Global Markets
How can the PartnerBASE™ be used?
Choose operating model
Select country
Brand
Country
Mazda
Peugeot
Peugeot
Škoda
Toyota
South Africa
Brazil
Mexico
India
South Africa
Product
offered?
Yes
Yes
Yes
Yes
Yes
EXTENDED WARRANTIES
Total number
Operating model
of schemes
External
External
External
External
External
underwriter
underwriter
underwriter
underwriter
underwriter
1
1
1
1
1
Look up
specific brands
Partner(s)
Innovation Group
Indiana Seguros (Liberty Mutual)
Quálitas
Bajaj Allianz General Insurance
Innovation Group
Identify product
partners
Note: for this report, PartnerBASE also covers 765 dealerships.
Expertise in financial services
© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
10
Extended Warranties for New and Used Cars in Emerging Global Markets
Who can use the research?
1.
Automotive manufacturers: this research provides a unique data allowing you to assess
objectively your position in extended warranties and to gauge the threat from non-captive
competitors;
2.
Underwriters and administrators of extended warranties: what are the opportunities to increase
or build market share within the extended warranty markets of each country by means of
distribution alliances with manufacturers, importers or dealers?
3.
Finance and leasing companies: extended warranties can be embedded in consumer finance
and leasing packages, hence it is important for providers in these areas to comprehend fully
the apparent opportunities;
4.
Management consultancies: are you helping a manufacturer or warranty provider with its
strategy or evaluating how it can develop its business in extended warranties? Understand the
current status of this product in ten emerging global markets, saving time and effort on
researching the subject yourself.
Expertise in financial services
© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
11
Extended Warranties for New and Used Cars in Emerging Global Markets
What are some of the key findings?
1.
Few manufacturer brands have schemes for extended warranties in China,
Indonesia or South Korea, while most do in India, Mexico and South Africa
Proportion of manufacturer brands with schemes for extended warranties, 2011
100%
80%
60%
40%
20%
0%
ARG
BRA
CHN
IND
IDN
MEX
ZAF
KOR
TWN
THA
Ave.
Source: Finaccord Global Automotive Financial Services Survey
Expertise in financial services
© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
12
Extended Warranties for New and Used Cars in Emerging Global Markets
What are some of the key findings? (cont.)
2. Most dealers in South Africa offer extended warranties that they have arranged
themselves, with Motorite and SA Warranties holding the largest share of partnerships
% of dealers offering extended warranties and product source
Provider share of partnerships, %
100%
legendtrick
other, 27.8%
80%
Motorite,
26.7%
Undisclosed
60%
Both
40%
Dealer (non-tied)
20%
Manufacturer / importer
0%
Product offered Product source
(see legend)
Source: Finaccord Global Automotive Financial Services Survey
Innovation
Group, 8.5%
McCarthy
Insurance
Services /
McSure,
11.4%
SA
Warranties,
25.6%
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© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
13
Extended Warranties for New and Used Cars in Emerging Global Markets
What are some of the key findings? (cont.)
3. In Brazil, although customer take-up rates for extended warranties are higher with new car
sales than with used cars, the scale of the used car market offers massive potential
Passenger car parc (million)
New / used passenger car sales (million)
50
10
Used car sales
40
8
30
6
New car sales
Car parc
20
4
10
2
0
0
2007
2008
2009
2010
2011
Source: Finaccord Global Automotive Financial Services Model
Expertise in financial services
© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
14
Extended Warranties for New and Used Cars in Emerging Global Markets
What are some of the key findings? (cont.)
4. Key findings from the executive summary include:
• across the ten countries in question, the market for extended warranties for passenger cars was
worth in the region of USD 615 million in 2011 in terms of gross written premiums and similar
revenues;
• the value of extended warranties sold with new cars was greater than that for used cars in seven
countries out of ten, though the used car segment is likely to rise as dealers become more involved
in selling used cars and as consumers become more aware of the cost of repairing cars;
• the use of extended warranties varies widely between countries: while 40.6% of dealers offered
them measured as an unweighted average across all ten countries, this figure ranged from a low of
3.1% to a high of 97.5%;
• in many countries, dealers rely on manufacturers’ and importers’ tied schemes, and many of these
are run internally; nevertheless, there are opportunities for external providers to form new
partnerships, both with dealers and with manufacturer brands.
Expertise in financial services
© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
15
Extended Warranties for New and Used Cars in Emerging Global Markets
What is the cost and format?
Extended Warranties for New and Used Cars in Emerging Global Markets is available as a standard
Adobe Acrobat PDF document and / or hard copy. The PartnerBASE™ that accompanies it at no further
charge is in Microsoft Excel format. Costs for this research set and other titles about automotive financial
services are as follows:
REPORT
PRICE *
Extended Warranties for New and Used Cars in Emerging Global Markets
Automotive Finance and Leasing for Consumers in Emerging Global Markets
Automotive Finance and Leasing for Consumers in Europe
Consumer Automotive Financial Services in Eastern and South-Eastern Europe
Consumer Automotive Financial Services in Emerging Global Markets
Consumer Automotive Financial Services in Northern and Central Europe
Consumer Automotive Financial Services in Southern and Western Europe
Extended Warranties for New and Used Cars in Europe
Manufacturer-Branded and Dealer-Intermediated Motor Insurance and Road Assistance in Emerging Global Markets
Manufacturer-Branded and Dealer-Intermediated Motor Insurance and Road Assistance in Europe
GBP 1,995
GBP 1,995
GBP 2,495
GBP 2,495
GBP 3,995
GBP 2,995
GBP 2,995
GBP 2,495
GBP 1,995
GBP 2,495
For UK-based clients, VAT at the prevailing rate will be added to the basic price.
Costs quoted are for a single site user licence only.
For a corporate user licence, please see the next slide for further details.
Invoices can be paid in EUR, at the prevailing exchange rate, if preferred.
Expertise in financial services
© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
16
Extended Warranties for New and Used Cars in Emerging Global Markets
How can the research be purchased?
Simple. Just go to the relevant area of the Finaccord web site available
www.finaccord.com/order_eu_afsr.htm and fill in the online order form, clearly indicating:
• report required
• type of corporate user licence, if required *
• billing name
• address and e-mail address
• purchase order number, if applicable
at
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* For the corporate user licence please choose one of the following options:
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3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered
4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered
VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers.
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© Finaccord Ltd., 2012
Web: www.finaccord.com. E-mail: info@finaccord.com
17