Showing posts with label Thailand Auto Finance Market. Show all posts
Showing posts with label Thailand Auto Finance Market. Show all posts

Wednesday, January 18, 2023

Thailand Auto Finance Market is expected to generate more than THB 1.7 Trillion credit disbursed in 2026F driven by Growth in Online Retail and Logistics: Ken Research

 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.



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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

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

For more insights on the market intelligence, refer to below link:-

Thailand Auto Finance Market

Related Reports by Ken Research:-

UAE Auto Finance Market Outlook to 2026F

Egypt Auto Finance Market Outlook to 2027

Malaysia Automotive Finance Market Outlook to 2026

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Wednesday, March 18, 2020

Thailand Auto Finance Market Research Report: Ken Research

How Thailand Auto Finance Market Is Positioned?
The auto finance market has played an imperative role in the overall GDP contribution in the Thai economy with a valuable contribution of ~ in terms of auto loan disbursed by the end of 2019 (Provisional). 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.
Major operations are conducted by three types of entities namely, Banks & Subsidiaries, Captive Finances, and Non-Bank Financial Institutes. Numerous new business strategies were adopted by major players including the launch of “Cash Your Car”, First Car Buyer The scheme, and Floor Plan Model with competitors indulging in maintaining extensive collaborations with luxury dealers like Volvo for product sales expansion.
The Auto finance market has increased in terms of loan disbursed to approximately THB ~ billion in 2019P from THB ~ billion in 2014 registering a CAGR of ~% during the same period. The credit disbursed in the Thailand Auto Finance Industry has increased from THB ~ billion in 2013 to THB ~ billion in 2019P. The number of vehicles financed increased from ~ in 2014 to ~ in 2019P. There have been various factors responsible for the growth. One of the major factors has been the consistent growing level of sales of used vehicles in Thailand along with a vast array of financing options being offered by lenders. Moreover, convenience in lending is being improved as online lending ecosystems contribute to the rising total addressable market in vehicle finance and lenders offer highly customized products catered to the borrower’s needs. The Issuance of digitally Advanced Products, being offered by various Fintech Institutions, also acts as a Catalyst to the Growth of Industry.
Thailand Auto Finance Market
Thailand Auto Finance Market Segmentation
By Vehicle Financed (2019): In Thailand, a sale is done for both new and used vehicles. Financing of New Car was observed to dominate the market during 2019P. New Vehicle Finance enjoys a majority share in the market owing to the advantages that come handy with the new vehicles that include higher resale value and better financing schemes. Used vehicles capture a comparatively lower share in the market in terms of Units Financed.
By Tenure of Loan: 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 lifestyle of the individual. The most preferred loan the time period in the Thailand Automotive market for the year 2019P is for 2 years.
By Type of Financing: The research showcased that Passenger vehicle finance is the leader in terms of financing acquired and amounts to ~ of the total loan outstanding in 2019P. After this, the Commercial vehicle segment of the market covers, ~ of the market and Registration pledge covers similarly ~ of the market, while the rest ~ of the total loan outstanding amounts to floor plan loans.
By Type of Vehicle financed: It was witnessed that out of Passenger loan outstanding, new Vehicle loans amount to ~ while Used Vehicle loans amount to ~ and motorcycle loans amounts to the only ~ of the total Passenger vehicle loan outstanding market.
By (Banks, NBFCs, and Captives): Commercial banks have accounted for a Major Share in the Overall Car Finance Market of Thailand on the basis of vehicles Financed. The second position in the market was captured by Captives and the third is captured by nonbanking finance Companies, which operate in the market for Automotive financing in 2019P.
Competitive Landscape In The Thailand Auto Finance Market
Competition in the market is moderately fragmented. The Major lending institution types in the market are Banks, Captives, 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 50% of the share, but the market of Captives and NBFC’s are majorly fragmented and totally amounts to more than 150+ players in the market. Competing Parameters: These entities majorly compete on the basis of diversification of services; interest rates charged, expanded distribution network & 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. The major players include Thanachart Bank, Ayudhya Bank, Siam Commercial Bank, TISCO Bank Capital, Asia Sermkij Leasing, Nakhon Luang Capital Limited, Thitikorn PCL and others.
Thailand Auto Finance Market Future Outlook and Projections
Over the forecast period, the Thailand auto finance market is expected to be positive if there is a continuous need for Car among the population. Multiple fin-tech startups have also come up in the country’s financial sector which poses a threat to conventional finance companies and banks. These startups have developed products to augment the digitalization of the banking sector. This includes digital payments, online lending, online aggregation, and remote banking facilities which made the customer lending process uncomplicated and simple further facilitating the car finance market in the country. Banks and Captives are expected to continue their leading position in the market due to their vast networks and range of products. In addition to that, the Thailand market is likely to witness a decline in Car sales which threatens the growth of a number of loans issued in the future.
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:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
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Location: Thailand

Monday, January 28, 2019

Thailand Auto Finance Market is Driven by Growth in Captive Finance Companies, Rising Farm Incomes and Higher Disposable Income of Middle Class: Ken Research

Thailand Car Finance Market
Improved technology, development of financial infrastructure, expanded the regional presence of supply-side entities, favorable government regulations, high household disposable income, growing consumer confidence index, increased use of used cars and rising demand from commercial vehicles have been the key factors driving growth in Thailand auto finance market.
First Car Buyer scheme came up in 2011 by the populist government in Thailand. It was an incentive introduced to encourage the low-income earners to buy or reserve a car and benefit from the generous tax bonuses provided. The tax refunds amounted to up to 100,000 baht for a medium sized car. Approximately 1.1 million vehicles were bought under this scheme in 2016. The lock-up period for the scheme was 5 years. Motorcycle sales shot up during the same period as a result of high prices of agricultural products which have driven the farm income and usage by farmers, caused partly by the rice-pledging scheme and partly by high oil prices which averaged at USD 106.8 per barrel during 2011-2013.
The report titled “Thailand Auto Finance Market Outlook to 2023 - by Loan Tenure, By Commercial Banks, Non- Banking Financial Institutions, Auto OEMs Captives; By New and Used Passenger and Commercial Vehicles” suggests that the growth key is in the hands of the Thailand government to unlock infrastructural and policy barriers restraining the industry. This would lead the market to grow to register a CAGR close to 4% on the basis of credit disbursed during 2018-2023.
The majority of the expansion in hire-purchase sales in these years came from financial institutes and from captive finance, with the latter group playing an increasingly important role in the sector after 2011. Following the boom period, the market showcased a sharp slowdown in growth in the auto hire purchase sector in 2014 and 2015. Following the burst, the market is yet to fully recover however by the end of 2018; it had set to generate positive returns. The first half of 2016 experienced poor results in the automobile as well as the motorcycle market owing to the weak household purchasing power during the same.
The auto hire-purchase sector tends to align itself with the domestic market for automobiles. Given its relationship with this market, the sector naturally plays an important role in the overall growth of the economy. During the last 5 years, the hire-purchase market has been sluggish and thus lenders (supply side entities) have relied on financing other range of products and have extended reach into related markets. This has included supplying ‘car for cash’ credit, which is fundamentally a loan tenable on a vehicle, and ‘floor plan’ arrangements, which provide financing to auto dealers for orders and purchases of vehicles and for working capital. Between 2011 and 2013, the sector experienced high levels of growth owing to the incentive provided by the first-car buyer scheme.
The penetration rates for both new and used cars have increased for the Thailand auto sector owing to the increased household disposable income. The penetration rates have increased also because of the fall in the fuel prices at USD 0.68 in 2016 per liter from USD 0.9 per liter in Thailand in 2015. The prices have seen a general decline along the review period from 2013-2018. Major financing companies reported strong financial performance with quality auto-loan growth and healthy liquidity positions.
The Non-performing loans (net to total loans) were recorded at 1.19%. Financing companies adopted the 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. The lending interest rates in Thailand decreased to 4.3% per annum in 2018 and recorded a declining CAGR of -3.3% during 2013-2018. The falling interest rate is an indication of favorable financing conditions for the citizens and this is thus an important aspect of increased financing. All of these factors have contributed towards a positive growth witnessed by the sector.
Keywords:
Thailand Car Finance Market
Thailand Vehicle Finance Market Overview
Thailand Car Finance Industry
Thailand Auto Finance Market
Thailand Auto Credit Disbursed
Thailand Auto Loan Outstanding
Thailand Auto Finance History
Thailand Vehicle Finance Ecosystem
Thailand Car Loan Value Chain
Thailand Auto Finance End User
Thailand Auto Finance Product
Thailand Auto Finance Major Players
Thailand Auto Finance Trends
Thailand Auto Finance Institutions
Thailand Auto Loan Challenges
Thailand Car Loan Forecast
Thailand Auto Finance Major Players
Loan Sale Purchase Thailand
Loan Outstanding Thailand
New Car Finances Thailand
Old Car Finance Thailand
Leasing Market Thailand
Auto Leasing Market Thailand
Bank Auto Finance Thailand
Non-Bank Institutes Thailand
Captives Thailand Auto Finance
Motorbike Loan Thailand
Truck Loan Thailand
Key Segments Covered:
Type of Vehicles (Passenger Vehicles and Commercial Vehicles on the basis of Credit Disbursed and Auto Loan Outstanding)
New and Used Cars (On the Basis of Number of Vehicles Financed and Auto Loan Outstanding)
Type of Institutions (Banks & Subsidiaries, Captive Finances and Non-Bank Financial Institutes on the Basis of Auto Loan Outstanding)
Loan Tenure (1 Year, 2 Years, 3 Years, 4 Years, 5 and more years on the basis of Auto Loan Outstanding)
Key Target Audience:
Existing Auto Finance Companies
Banks & Subsidiaries
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:
Financial Year 2013-2018: Historical Period
Financial Year 2019-2023: Future Forecast
Companies Covered:
Banks:
Thanachart Public Company Limited, Siam Commercial Bank Public Company Limited, Kasikorn Bank Public Company Limited, Kiatnakin Bank Public Company Limited, Bank of Ayudhya Public Company Limited and TISCO Bank Public Company Limited
Subsidiaries:
Ratchthani Leasing Public Company Limited, Thanachart Group Leasing Company Limited, Ayudhya Capital Auto Lease Public Company Limited, Ayudhya Capital Services Company Limited, Krungsri LEASING Services Company Limited, Ngern Tid Lor Company Limited, TISCO Leasing Company Limited, TISCO Tokyo Leasing Company Limited, Kasikorn Leasing Company Limited AND Kiatnakin Leasing Company Limited.
Captive Finances:
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 And Thai Rung Union Car Public Company Limited
Non-Banks:
Ayudhya Capital Services Company Limited, Ayudhya Capital Auto Lease Public Company Limited, Asia Sermkij Leasing Public Company Limited, Ngern Tid Lor Company Limited, Jmt Network Services, SGF Automotive, Thai Ace Capital, Aeon Thana Sinsap Public Company Limited, Summit Capital Leasing Company Limited, Nakonluang Capital Public Company Limited, J Money Company, G Capital Public Company Limited and Thiensurat Leasing Company Limited
To Know more, Click On the Link:-
Related Reports By Ken Research:
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
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Location: Thailand
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