GURUGRAM, India, Jan. 16, 2023 /PRNewswire/ — Thailand’s Auto Finance Market is in the maturity stage, driven by road infrastructure development, economic growth in the country, and a dramatic increase in trading partners and export earnings. Major entities in the market are Banks and Captives that are 90-100 years old offering variety of financing services.
Thailand’s market uses the traditional way of banking including manpower and face-to-face transactions instead of online processes.
Nowadays, many non-banks have jumped into the Auto-finance business and they are doing it in a simpler way than banks.
The automotive industry in Thailand is the largest in Southeast Asia and the 10th largest in the world.
Growth in Online Retail and Liberal Trade Arrangements: There will be a rise in demand for commercial vehicles due to ongoing government investment, expansion in online retail, and logistics. The car manufacturers of the country plan to increase demand by releasing new models (including both the internal combustion engine and electric vehicles). With this, the greater trade openings under the current ASEAN Free Trade Area agreement would permit Thailand to export more automobiles to the rest of the region.
Used car financing more accessible and inexpensive: Thailand’s government announced subsidies for electric vehicles is anticipated to increase the country’s demand and sales for vehicles. Due to various financing companies’ policies that make used car financing more accessible and inexpensive, used car financing may experience an increase in the segmentation of the type of vehicle funded in the upcoming years. In addition to this, to enhance the volume of new car loans, Thailand’s leading banks also have the chance to strategically work with the original equipment manufacturer.
Shift from ICE to EV and Rapid Digitalization: Due to the increased energy efficiency, affordability, and environmental friendliness of electric vehicles, the market has experienced a transition away from internal combustion engines. As a result, EVs are now preferred over ICE vehicles in Thailand. To enhance the consumer experience, auto financing organizations are leaning more and more toward advanced technical developments. Online automobile sales have developed into a “one-stop-shop” service that gives customers direction and customization. In order to enhance and automate the delivery and use of financial services, such as payment gateways and trading platforms, new technology-based firms are joining the Thai car finance sector.
Analysts at Ken Research in their latest publication “Thailand Auto Finance Market Outlook to 2026F- Driven by Road Infrastructure Development and Economic Growth in the Country” observed that the Auto Finance market is an emergent market in Vietnam at a rebounding stage from the economic crisis after the pandemic. The immense infrastructural development projects in the country, partnerships, and mergers with other banks along with the adoption of digitalization are expected to contribute to the market growth over the forecast period. The market is expected to grow at a 7.4% CAGR during 2021-2026F owing to the increasing purchasing power of consumers, adoption of EVs, and new government policies.
Key Segments Covered:-
Thailand Auto Finance
By Type of Vehicle financed
New cars
Used cars
Motorcycles
By Distribution channels
Banks & Subsidiaries
NBFC’s
Captives
By Type of Financing
Passenger Vehicles
Commercial Vehicles
By purpose type
Loans
Lease
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By Tenure of the loans
1 year
2 years
3 years
4 years
5 years and above
Key Target Audience:-
Banks and their Subsidiaries
NBFCs
Captive Finance Companies
Government and Institutions
Automobile Companies
Car Dealers
Government and Institutions
Existing Car Finance Companies
OEM Dealerships
New Market Entrants
Investors
Automobile Associations
Time Period Captured in the Report:-
Historical Year: 2016-2021
Base Year: 2021
Forecast Period: 2021– 2026F
Companies Covered:-
Banks and Subsidiaries
TMBThanachart Bank
Ayudhya Bank
Siam Commercial Bank
TISCO Bank
Kiatnakin Bank
Kasikorn Bank
Others (Including ICBC Bank, Citi Bank, Bangkok Bank, and Krungthuri Bank)
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Captives
Toyota Leasing Thailand
Honda leasing
Mercedes-Benz leasing
BMW Financial Services
Others
NBFC’s
Muangthai Capital
Asia Sermkij Leasing
Nakhon Luang Capital Limited
Thitikorn
Summit Capital
Group Lease
Aeon Thana Sinsap
G Capital Public Limited
Others (Thai Ace Capital, SGF Capital, JMT Network, Phatra Leasing Company, Mitsib Leasing)
Key Topics Covered in the Report:-
Thailand Automotive Market Overview
Thailand Automotive Finance Market Overview
Ecosystem of Thailand Auto Finance Market
Business Cycle and Timeline of Thailand Auto Finance Market
Thailand Auto Finance Value Chain Analysis
Market Sizing Analysis of Thailand Auto Finance Market, 2016-2021
Thailand Auto Finance Market Segmentation (By Type of Vehicle Financed, By Distribution Channel, By Tenure Loan, By Purpose Type, By Type of Motor Vehicle), 2021
SWOT Analysis of Thailand Auto Finance Industry
Trends and Developments in Thailand Auto Finance Industry
Decision Making Parameters for Selecting Car Loan Vendor
Issues and Challenges in Thailand Auto Finance Industry
Growth Drivers of Thailand Auto Finance Market
Government Regulators and Initiatives in Thailand Auto finance Industry
Competition Framework for Thailand Auto Finance
COVID-19 Impact on Thailand Auto Finance Market
Future Outlook and Projections of Auto Finance Market in Thailand, 2021-2026F
Market Opportunities and Analyst Recommendations
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Related Reports by Ken Research:-
UAE Auto Finance Market Outlook to 2026F
The UAE Auto Finance Market witnessed significant growth during the period 2016-2021, owing rising automobile demand, flexible financing models, and rise in online auto finance aggregators. Growth rate of total cars financed is going to increase over the period as financing becomes easier and market penetration rates increase.
Urbanization is expected to rise to more than 60% by 2030, which means increased demand for jobs, housing, infrastructure, and social services such as public transportation. Moreover, the recent increase in the cost of public transportation has led to increase in demand for personal vehicles. Egypt Auto Finance Market is currently at the growth stage and the market is currently increasing at a double digit CAGR owing because of lower interest rate, growing disposable income and easy financing options.
Number of passenger car ownership in Malaysia exceeded the population in Malaysia. Poor public transport infrastructure is one of the reasons. The used car industry is also enjoying a boom in business, and is reportedly on-track to register double-digit growth in sales. Import of vehicles still exceeds the exports resulting huge trade deficit. Government has taken various initiatives to support domestic manufacturing of vehicles by setting up companies like Proton and Perodua. Government also gives various incentives on purchasing of National Car. The market is at maturity stage with stable population, high ownership of car and small domestic commercial vehicle market, the opportunity of growth in Malaysia is quite limited.
Philippines Auto Finance Market is Expected to grow at a good CAGR in between 2021 and 2026F, one of the major determinants for the surging growth in coming years is the Increasing Population and growing income levels leading to rise in sales of cars , the rise in Auto Outstanding Loans in Philippines, the increase in Auto Loan Outstanding is expected a high growth rate between 2021F-2026F, High-Mid range car models are expected to witness strong success as the majority of car buyers segment includes the High Income people leading to larger Loan amount per customer, Expectation of high growth in car sales especially in Green cars as the government is building the infrastructure like the charging point at public parks . Higher digitization and usage of Artificial Intelligence and Machine Learning to improve customer convenience. New Business Models such as Subscription Lending, Shared ownership financing are coming into play which will lead the way for high growth rate in the Philippines Auto Finance Market.
Vietnam’s Cold Chain market was evaluated to grow at a double-digit CAGR during 2016-2021. The market is currently in the growth stage owing to lower interest rates along with increasing government initiatives and investments in the sector. The Pandemic has resulted in the slow growth of Auto Finance where Vietnamese preferred to own a private vehicle to avoid public transportation. The growing penetration of the internet and smartphones and the rising purchasing power of the middle class resulted in changing preferences of consumers which are some of the key factors fueling the Auto Finance Market in Vietnam.
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