“While oil price in 2019 is expected to linger at a relatively high level, government bodies are encouraging EV production via incentives and tax reductions. In alignment with this wave, the Thai Finance Ministry reduced excise tax rates for EV cars since 2017, driving domestic sales of hybrid electric vehicles (HEVs), battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). This trend will likely continue into 2019 despite the expected decline in the overall domestic automotive sales”.
Analysts at Ken Research in their the latest publication “Thailand Auto Finance Market Outlook to 2024: Growing The prominence of Captive Finance Companies and Loan Portfolio of Banks acting as a The catalyst for Market Growth” believe that the market demand is likely to follow a growing trend in the near future due to a forthcoming increase in the used cars sales and a shift towards newer models of mobility such as car-sharing and leasing, which will, in turn, help the economy grow as well. Some positive factors expected to impact the market are the influx of digitization based lending models (introduction of fin-tech products), the spread of customized loan products and a further rise in the penetration rate of banks and captive finance. The market is anticipated to register a positive CAGR of 8.8% in terms of credit disbursed and 10.2% in terms of the total loan outstanding during the forecasted period 2019-2024.
Important Role of Thai Captive Finance Institutions: Working in association with dealers, captive companies used a variety of strategies to promote sales as a way of reducing large stock holdings, which following the earlier period of expanded output by manufacturers had grown too high levels. Among these strategies, they introduced ‘balloon loans’. These loans are a way of extending financing to low-income groups and are structured so that payments for each installment are low, with the outstanding balance paid off by a large lump-sum payment in the final period. In addition, installment periods were extended to 3-6 months each so that individuals who have seasonal incomes, such as many of those who work in the agricultural sector could also gain easier access to credit.
Simplification of Lending Process: With indirect lending gaining precedence over direct lending, the loan process doesn’t involve communication between the credit institution and the consumer for discussing loan terms and payments. With flexible payment options being introduced, the spotlight has shifted from affordability to convenience. Borrowers are now looking for flexibility in loan terms as well as refinancing options if the need arises. Lenders have been introducing customized products in order to cater to the needs of different consumer profiles and online lending models have simplified and improved the ease with which borrowers can compare and avail financing for their vehicle.
Investment by Japanese Automakers will act as a catalyst to Revenue Growth: Several Japanese automakers have conveyed plans for further investment within Thailand, which should help the government implement its roadmap to build a globally competitive automotive industry. The investment will be used to expand the company’s business in Thailand during the period of 2019-2023. This will further boost up the sales of various passenger car companies in Thailand thereby, creating a positive impact on the Thailand auto finance market.
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:-
Thanachart Bank Auto Hire Purchase Market
Mercedes-Benz Car Finance Market Analysis
Muangthai Capital Car Loan Market Share
Aeon Thana Sinsap Net Interest Income in THB Million
Motorbike Loan Market Thailand
Best Car Financing Options Thailand
Two Wheeler Loan Market Thailand
Car Loan interest Rate Thailand
Auto Loan Car Sales Thailand
Digitization of Vehicle Finance Market Thailand
Thailand Light Truck Finance Industry Analysis
Banks Finance Market Share Thailand
Non-Banking Finance Companies Revenue in Thailand
Thailand Auto Loan Outstanding in THB Billion
For More Information On The Research Report, Refer To Below Link:-
Related Reports by Ken Research:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
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