Thailand Auto Finance Market Future Outlook: Ken Research

“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 growth trend in the near future due to a forthcoming increase in the use 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 Auto mobile Associations Auto mobile 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:- https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/thailand-auto-finance-market-outlook/299310-93.html Contact Us:- Ken Research Ankur Gupta, Head Marketing & Communications Ankur@kenresearch.com +91-9015378249