Friday, January 3, 2020

Thailand Auto Finance Market Outlook to 2024: Ken Research

The report titled Thailand Auto Finance Market Outlook to 2024: Growing Prominence of Captive Finance Companies and Loan Portfolio of Banks acting as a Catalyst for Market Growth” provides a comprehensive analysis of the auto finance market in Thailand. The report focuses on overall market size in terms of credit disbursed, auto loan disbursed, auto loans outstanding and Number of automobiles financed; Thailand auto finance market segmentation by new and used vehicles, by tenure of loan (1 year, 2 years, 3 years, 4 years and 5 years or more), by type of financing (passenger vehicles, commercial vehicles, registration pledge, and floor plan), by type of vehicle financed (new cars, used cars and motorcycles) and by type of institutions (banks and subsidiaries, captive finance and non-banks). The report also covers overall comparative landscape including strengths and weaknesses and cross-comparisons; trends and growth drivers, issues and challenges, market share in terms of sales volume, government regulations and company profiles. The report concludes with future projections and analyst recommendations highlighting major opportunities and cautions.
Thailand Auto Finance Market Overview and Size
The auto finance market has played an imperative role in overall GDP contribution in the Thai economy with a valuable contribution of ~ in terms of auto loan disbursed by the end of 2019. The market compasses similar trends fairly in-line with the domestic vehicle sales market, qualitatively & quantitatively. After witnessing a burst in 2015 the market is currently placed in its recovery phase registering a slow-moving growth rate. Thailand's auto finance market size in terms of the auto loan outstanding increased during 2014-2019P thus, registering a positive CAGR during the same period. The growth factors include lowering lending rates, growth in new & used car sales, expanding household disposable income and higher farm income along with progressive technological advancements being mandated by the government and the adoption of digitalization by all major financial institutions in the country.
Thailand Auto Finance Market
Thailand Auto Finance Market Segmentation
By New and Used Vehicles Financed: Market segmentation is done on the basis of sales of New and Used Vehicles financed. It was observed that out of total vehicle financed, new vehicles captured the majority of the market in 2019P, while used vehicles captured the remaining market of the overall financed vehicle.
By Loan Tenure (1 Year, 2 Years, 3 Years, 4 Years and 5 Years or More): During 2019P, it was observed that the most preferable loan tenure was of 2 years and ~ of the credit disbursed was given out for 2 years. After this people preferred taking a loan for 1 year followed by loan for 3 years, loan for 4 years captured and the rest of the market was given for 5 years or more.
By Type of Financing (Passenger Vehicles, Commercial Vehicles, Registration Pledge, and Floor Plan): The research showcased that Passenger vehicle finance is the leader in terms of financing acquired in 2019P. After this, the Commercial vehicle segment of the market grabbed the second position and registration pledge covered the 3rd position of the market, while the rest of the total loan outstanding amounts to floor plan loans.
By Type of Vehicle financed (New Cars, Used Cars and Motorcycle): It was witnessed that out of passenger loan outstanding, new vehicle loans dominated whereas, the used vehicle loans and motorcycle loan segment captured the remaining market in 2019.
By Type of Institutions (Banks and Subsidiaries, Captive Finance and NBFCs Non-Banking Financing Institutions): Banks and subsidiaries segment were observed as the market leader in the Thailand Auto finance market and govern around the majority of the market share in 2019P. It was further observed that captive finance institutions and NBFC’s collectively captured the remaining market in terms of the loan outstanding during 2019.
Competitive Landscape of Thailand Auto Finance Market
Competition in the market is moderately fragmented. The Major lending institution types in the market are Banks, Captives and Multi Finance Companies, they hold a moderately Fragmented share in the lending space for New Cars. However, the top 6 players in the market make up for almost half of the market share, but the market of Captives and NBFC’s are majorly fragmented and total amounts to more than 150+ players in the market. These entities majorly compete on the basis of diversification of services; interest rates charged, expanded distribution network and regional presence and enhanced customer relationship. One of the chief competing parameters is digitalization that has completely changed the market along with major strategies used to attract customers & expand business including Cash Your Car and others.
Thailand Auto Finance Market Future Outlook
Thailand auto finance market is likely to witness the boom in terms of the auto loan outstanding, credit disbursed and a number of vehicles financed especially owing to fast-paced developments on the technological front with the development of the Eastern Economic Corridor (EEC). This corridor would facilitate automobile availability in a market with the development of new plants, massively increasing the number of automobiles manufactured. This is expected to increase the number of total vehicles financed in the country. Customers would witness new schemes in the market focusing primarily on customer's friendly outlook and enable customers to operate auto loans financial services from home, without any hassle.
Key Segments Covered:-
By Vehicle Financed
New Vehicles
Used Vehicles
By Lender Institutions
Banks
Captives
Non-Banking Finance Companies (NBFCs)
By Type of Finance
Passenger Vehicle
Commercial vehicles
Registration Pledge
Floor Plan
By Type of Vehicle
New Auto
Used Auto
Motorcycles
By Loan Tenure between New and Used Autos
One Year
Two Years
Three Years
Four Years
Five Years or more
Key Target Audience
Existing Auto Finance Companies
Banks
OEM Dealerships
Captive Finance Companies
Credit Unions
Private Finance Companies
New Market Entrants
Government Organizations
Investors
Automobile Associations
Automobile OEMs
Time Period Captured in the Report:
Historical Period: 2014-2019P
Forecast Period: 2019P-2024F
Key Companies Covered:
Banks
Thanachart Bank
Ayudhya Bank
Siam Commercial Bank
TISCO Bank
Kiatnakin Bank
Kasikorn Bank
ICBC Bank
Krungthai Bank
NBFCs
Muangthai Capital
Asia Sermkij Leasing
Nakhon Luang Capital Limited
Thitikorn
Summit Capital
Group Lease
Aeon Thana Sinsap
G Capital Public Limited
Thai Ace Capital
SGF Capital
JMT Network
Phatra Leasing Company
Mitsib Leasing
Captives
Toyota Leasing Thailand
Mercedes-Benz leasing
BMW Financial Services
MITSU Leasing Thailand
Ford Services Thailand Company Limited
Honda Leasing Thailand Company Limited
Hyundai Motor Thailand Company Limited
KIA Motors Finance
Mazda Financial Services Limited
Suzuki Motor Thailand Company Limited
Volvo Financial Services
Tri Petch Isuzu Leasing Company Limited
Land Rover Financial Services
Mini Financial Services
Porsche Financial Services
Thai Rung Union Auto Public Company Limited
Key Topics Covered in the Report:-
Thailand Auto Finance Market Overview and Genesis
Thailand Auto Finance Market Ecosystem, 2019P
Value Chain Analysis of the Thailand Auto Finance Market, 2019P
Thailand Finance Market Value Chain Analysis
Thailand Auto Finance Market Size, 2013-2019P
Thailand Auto Finance Market Segmentation, 20113-2019P
Major Trends and Development in Thailand Auto Finance Market
Issues and Challenges in Thailand Auto Finance Market
Regulatory Framework in the Thailand Auto Finance Market
Snapshot on Thailand Automotive Sales and Manufacturing Market, 2014-2019P
Ways to Finance Automotives in Thailand (Bank Finance or Multi Financing Companies, Personal Finance, Lease Financing)
Vendor Selection Process for Auto Finance Company in Thailand
Competitive Landscape Containing Company & Product Profiles in the Thailand Auto Finance Market
Financial Penetration of various OEM Brands
Thailand Finance Market Future Outlook and Projections, 2019P-2024
Analyst Recommendations for the Thailand Auto Finance Market
For More Information On The Research Report, Refer To Below Link:-
Related Reports by Ken Research:-
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Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249

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