The report titled “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” provides a comprehensive
analysis of Philippines’ auto finance market including market evolution, market
overview, market genesis, market size and market segmentations. Extensive focus
has been placed in quantifying the auto credit disbursed auto loans outstanding
and number of vehicles financed. The report covers aspects such as market segmentation
(by loan tenure, type of vehicles, new and used cars and type of institutions)
and snapshot on general automotive space in Philippines. Comparative landscape
of major banks including Metro Bank, BDO, Ps Bank, East West Bank, Philippine
National Bank (PNB Saving Bank), Bank of the Philippine Islands, RCBC, May Bank
Philippines Incorporated and others as well as the comparative landscape of
major NBFCs including the Toyota Financial Services Philippines Corporation
(TFSPH), MAFS, Unistar Credit and Finance Corporation, Radio Wealth finance
Company, Asia Link Finance Corporation and others have been extensively
covered. The report also covers future industry analysis (by credit disbursed
and auto loan outstanding), future market segmentation, SWOT analysis, growth
opportunities, up-coming business models, government regulations and analyst
recommendations.
Philippines Auto Finance Market
Overview and Size
Philippines auto finance market has been identified in its
growth stage. The auto finance market tends to align itself with the domestic
market for automobiles. Given its relation with this huge market, the sector
naturally plays an important role in the overall growth of the economy. During
the last 5 years, the auto finance market has boomed as demand and supply for
automotives was growing at double digits year on year. Lenders (supply side
entities), in this period have evolved to provide a range of innovative
products and services to further improve attraction and penetration of the
market. There have been various factors driving the growth of the Philippines auto
finance market by value as well as by credit disbursed. Some of these factors
are the growing economy of Philippines, increasing motorization rate, increased
disposable income leading to an increase in purchase of automobiles and the
advent of web aggregators. Along with these factors, an increase in per capita
income has led more households to own an automobile in Philippines.
Philippines Auto Finance Market Segmentation
By Type of Motor Vehicle Loans
Provided By Banks and NBFCs (Auto Loan Portfolio and Motor Cycle Loan
Portfolio): In
Philippines, auto loan is disbursed only for passenger vehicles including
passenger cars, utility vehicles, sports utility vehicles; and commercial
vehicles including trucks, buses and trailers. Motorcycle loans provided to
finance two wheelers in the country. Auto loan provided by both banks as well
as NBFCs was observed to dominate the market during 2018. The total loan
portfolio provided by the banks for financing automotives has grown over the
review period.
By Type of Motor Vehicle (New Vehicle
and Pre-Owned Vehicles): Loan financing provided for new vehicles
established itself as market leader in the Philippines auto finance market
during the year 2018 owing to the advantages that come handy with the new
vehicles that includes higher resale value and better financing schemes.
Pre-owned vehicles captured limited share in the market.
By Type of Motor Vehicle Financed
(Passenger Vehicle and Commercial Vehicle): Passenger vehicles are used for domestic purpose either by
family or an individual for personal use whereas commercial
vehicles are majorly used for business purpose. Passenger vehicle financing
dominated the Philippines auto finance market during the year 2018. Heavy
traffic coupled with rising prices of the car is letting Filipinos to shift
from cars to motor cycles in Philippines.
By Time Period of Loan (1, 2, 3, 4, 5 and more years) Between
New and Pre-Owned Motor Vehicles: The loan
tenure selected by the customer depends on factors such as the price of the
car, income level of the customer, flexible scheme options and other social
factors such as family size and life style of the individual. The maximum
tenure allotted for a car loan by both banks and private finance companies is
seven years for new car. It has been observed that, people opting for five year
loan tenure dominated the Philippines auto finance market in 2018 followed by 3
year, 4 year, 2 year and 1 year loan tenure period.
By Vehicles Registered Under Various Regions: Number of new vehicles sold in NCR was observed to be higher
compared to all other Filipino regions. The heavily populated capital city
along with emerging business opportunities in the city has given a boost to
commute via cars / motor cycles.
Competition within the Philippines auto
finance market was observed to be highly fragmented along with majority the
motor vehicle loans being financed by Banks and the rest small portion is
financed by Non Banks and Dealerships. 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. However, stiff competition was observed in the case of
NBFCs and dealerships operating in the Philippines including Toyota Financial
Services Philippines Corporation, MAFS, Unistar Credit and Finance Corporation,
Radio Wealth finance Company and others. Parameters on the basis of which
companies compete in the market include price, digitalization, customer
centricity, type of distribution network, service portfolio and others.
Although there are approximately 100-150 entities involved in extending owing
to low cost of financing and high trust factor associated with their organized
and stable business structures.
Philippines
Auto Finance Market Future Outlook
and Projections
Over the forecast period, Philippines auto finance market is
expected to be positive if there is continuous need for motor vehicle among
population. Multiple fin-tech startups have also come up in the country’s
financial sector which poses a threat to multi finance companies. These start
ups have developed products to augment the digitalization of the banking
sector. This includes digital payments, online lending and remote banking
facilities which made customer lending process uncomplicated further
facilitating the car finance market in the country. Non-banks and dealerships
services are expected to outpace the growth in banking institutions because of
their customized products and ease to approach. The turnaround time to finance
is also relatively less compared to banking institutions. In addition to that,
the Philippines auto finance market is likely to witness a boom in terms of
number of auto loans sanctioned especially on the technological front.
Moreover, a rise in commercial activities engaging automobiles such as rising
use of vehicles in public transport, agricultural and industrial use, are
expected be the potential prospects of growth in the next five years.
Key Segments Covered:-
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
Key Topics Covered in the Report:-
Philippines Auto Finance Market
Evolution
Philippines Auto Finance Market
Overview and Genesis
Philippines Auto Finance Market
Ecosystem, 2018
Philippines Auto Finance Market Value
Chain Analysis
Philippines Auto Finance Market Size,
2013-2018
Philippines Auto Finance Market
Segmentation, 2013-2018
Major Trends and Development in
Philippines Auto Finance Market
Regulatory Framework in the Philippines
Auto Finance Market
Snapshot on Philippines Automotive
Sales And Manufacturing Market, 2013-2023
Comparative Landscape in the
Philippines Auto Finance Market
Philippines Auto Finance Market
Future Outlook and Projections, 2018-2023
Analyst Recommendations for the
Philippines Auto Finance Market
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
