“The banks and non-banking institutions are moving away from
the capital region towards less penetrated areas by increasing their branches
to tap the underserved market.”
Analysts at Ken Research in their latest publication “Philippines
Auto Finance Market Outlook to 2023 – By Banks and NBFCs including Captive Units
(Auto Loan Portfolio and Motor Cycle Loan Portfolio), By New and Used Motor
Vehicles, By Motor Vehicle Financed (Passenger and Commercial Vehicles), By
Loan Time Period” believe that the Philippines Auto Finance demand will
grow in the near future on the back of growing digitalization and market
innovation, customized auto loan product, focusing towards marketing and
promotion, providing commercial and used vehicle financing and other
factors. The market is further
anticipated to register a positive CAGR of ~17% in terms of AUM during the
forecasted period 2018-2023.
Growing Economy: The Philippines is one of the fastest
growing economies in the world with major focus shifting from agriculture to
services and manufacturing. Amid this transition, major focus is being given to
automobile sector to increase its contribution towards GDP. As auto
manufacturing sector advances costs are coming down making automobiles more
accessible for Philippines locals. The country has a motorization rate of just
38 vehicles per 1,000 people which is way less than other ASEAN countries. This
number is growing with more Filipinos entering the middle class in a
flourishing economy and aiming to own a personal vehicle.
The penetration rates for both new and
used cars has increased for the Philippines auto sector thus, leading to high purchase of
automobiles owing to the increased household disposable income of the citizens.
Also, the Philippines Gross National Income per capita has increased
considerably in the past one decade, allowing more households to own an
automobile of their own. Increasing
purchasing power in terms of household income has allowed the citizens to meet
the minimum household income criteria of auto loan institutions which have led
to massive increase in auto loan book and new loan acquisition rate. The
advent of online aggregators such as www.autodeal.com.ph has made potential
buyers more aware of the prevailing prices in the market for sales of
automobiles. This has given them higher bargaining power to customers to make
better informed decisions while negotiating prices with car dealers in both new
and second hand sales of cars and others.
Strong Financial performance of Major
Players and non-banking institutions: Major financing
companies reported strong financial performance with quality auto-loan growth
and healthy liquidity positions. Financing companies adopted risk-averse
strategy in vehicle financing by prioritizing loans for the best-selling cars
while penetrating a second-hand vehicle market for an optimal risk-return
trade-off. Some of the leading banking institutions include Metro Bank, BDO, Ps
Bank, East West Bank, the Philippine National Bank (PNB Saving Bank), Bank of
the Philippine Islands, RCBC, May Bank Philippines Incorporated and others
whereas some of the leading NBFCs in the Philippines include Toyota Financial
Services Philippines Corporation, MAFS, Unistar Credit and Finance Corporation,
Radio Wealth finance Company and others.
By Type of Motor Vehicle Loans Provided By Banks and NBFCs
Auto Loan
Portfolio
Motor
Cycle Loan Portfolio
By Type of Motor Vehicle
New
Vehicle
Pre-Owned
Vehicles
By Type of Motor Vehicle Financed
Passenger
Vehicles
Passenger
Cars
Utility Vehicles
Sports Utility
Vehicles
Two
Wheelers
Commercial Vehicles
Trucks
Buses
Trailers
By Time Period of Loan between New and Pre-Owned Motor
Vehicles and
One Year
Two Year
Three
Year
Four Year
Five
Years and More
By Vehicles Registered Under Various Regions
Key Target Audience:-
Existing
Auto Finance Companies
Banks
& Subsidiaries
Auto OEM
Captive Finance Companies
Non
Banking Financial Institutions
New
Market Entrants
Automobile
Financing Companies
Government
Organizations
Investors
Automobile
Associations
Automobile
Original Equipment Manufacturer
Time Period Captured in the Report:-
Historical Period: 2013-2018
Forecast Period: 2018-2023
Key Companies Covered:-
Banking
Institutions
Metro Bank
BDO Bank
PS Bank
East West
Bank
Philippine
National Bank
Bank of
the Philippine Islands
Maybank
Philippines Incorporated
Others
Non-Banks and Dealership Financing
Toyota
Financial Services Philippines Corporation (TFSPH)
MAFS
Unistar
Credit and Finance Corporation
Radio
Wealth finance Company
Others
Keywords:-
Philippines Auto Finance Market
Auto Finance Market In Philippines
Philippines Auto Finance Market Revenue
Philippines Auto Finance Market Major Players
AUM Auto Loan Philippines
Auto Loan Book Market Philippines
Auto Loan Product Philippines
Bus Finance Market Philippines
Used Car Finance Market Philippines
Car Finance Industry Philippines
Motor Loan Market Philippines
Motor Loan Book Philippines
Motor Cycle Loan Market Philippines
Auto Lease Market Philippines
Philippines Auto Finance Product
For more information on the research
report, refer to below link:-
Related
Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
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