Philippine Auto Finance Growth is Driven by Rise in Sales of Used Cars and High Financial Penetration Rate: Ken Research

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“While oil price in 2020 is expected to linger at a relatively high level, currently in Philippines, there are 28 firms engaged in the manufacturing of various electric vehicles. Complementing these companies are 11 parts and component manufacturers and seven importers. The industry currently provides employment to 14,840 individuals. As the government continues to support the use of electric vehicles, the industry is expected to grow in the coming years”.

Market Penetration opportunity for Captive Finance Institutions: The Auto Finance Market of Philippines only consists of one major player in the market (TFSPH). This leaves space for major OEM brands to introduce in house financing services to enjoy the complimentary revenue stream which further helps in creating better demand in the market for Automotive sales and better customer acquisition probability.

Philippines Auto Finance Market - Copy

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. Many Agents are acting as mediators to get the loans approved and help the consumer acquire quick loans. Furthermore, with flexible payment options being introduced, the spotlight has shifted from affordability to convenience. Lenders have been also 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 and Chinese Automakers will act as a catalyst to Revenue Growth: Several Japanese automakers have conveyed plans for further investment within Philippines, 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 Philippines during the period of 2019-2023. This will further boost up the sales of various passenger car companies in Philippines thereby, creating a positive impact for Philippines auto finance market.

Analysts at Ken Research in their latest publication Philippines Auto Finance Market Outlook to 2024- Growing Prominence of Captive Finance and Surge in Used Car Sales Supporting Disbursement for Auto Loansbelieve that the market demand is likely to follow a growth trend in the near future due to a forthcoming increase in 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. The market is anticipated to register a positive CAGR of 9.0% in terms of credit disbursed and 8.1% in terms of total loan outstanding during the forecasted period 2019P-2024F.

Key Segments Covered:

By Type of Vehicle Financed

New Vehicles

Used Vehicles

Motorcycles

By Banks and Non Banks

Banks (Auto Loans and Motorcycle Loans)

Non Banks (Auto Loans and Motorcycle Loans)

By Type of Banking Institutions

Commercial and Universal Banks

Thrift Banks

By Nature of Vehicles New Vehicles (Banks and Non Banks)

Used Vehicles (Banks and Non Banks)

By Type of Vehicle Sold

Passenger

Commercial

Motorcycles

By Tenure of Loans

New Vehicle (1 year, 2 Years, 3 Years, 4 years, 5 Years or More)

Used Vehicle (1 year, 2 Years, 3 Years or More)

By Registration of Vehicles

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

MetroBank

BDO Bank

PS Bank

Eastwest Bank

The Philippine National Bank

Bank of the Philippine Islands

The Rizal Commercial Banking Corporation

Maybank Philippines

China Bank

United Coconut Planters Bank

Security Bank Corporation

Union Bank

Robinsons Bank

The Philippine Bank of Communications (PBCOM)

Land Bank of Philippines

Asia United Banking Corporation

Bank of Commerce

Development Bank of Philippines

Union Bank

UCPB Bank

Sterling Bank of Philippines

NBFCs

Radiowealth finance company (RFC)

Unistar Credit and Finance Corporation

Asia Link Finance Corporation Leauge

One Finance and leasing Corporation

DBP Leasing Corporation

First United Finance and Leasing Corporation

BPI Capital Corporation

Cebu International Finance Corporation

Orix Metro Leasing and Finance Corporation

Philippine Depository and Trust Corporation

LBP leasing and Financing Corporation

RCBC Leasing and Finance Corporation

Captives

Toyota Financial Services Philippines Limited

Key Topics Covered in the Report

Philippines Auto Finance Market Overview and Genesis

Philippines Auto Finance Market Ecosystem, 2019P

Value Chain Analysis of Philippines Auto Finance Market, 2019P

Philippines Finance Market Value Chain Analysis

Philippines Auto Finance Market Size, 2013-2019P

Philippines Auto Finance Market Segmentation, 20113-2019P

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, 2014-2019P

Ways to Finance Automotives in Philippines(Bank Finance or Multi Financing Companies, Personal Finance, Lease Financing)

Vendor Selection Process for Auto Finance Company in Philippines

Competitive Landscape containing Company & Product Profiles in the Philippines Auto Finance Market

Financial Penetration of various OEM Brands

Philippines Finance Market Future Outlook and Projections, 2019P-2024

Analyst Recommendations for the Philippines Auto Finance Market

For More Information, refer to below link:-

Philippines Auto Finance Market Research Report

Related Reports:-

Thailand Auto Finance Market Outlook to 2024: Growing Prominence of Captive Finance Companies and Loan Portfolio of Banks acting as a Catalyst for Market Growth

Qatar Auto Finance Market Outlook to 2023 –By Banks, Non Banking Financial Companies and Captives, By New and Used Vehicles Financed, By Type of Vehicle Financed (Motor Bikes, Cars and Light Commercial Vehicles) and By Loan Time Period

US Vehicle Finance Market Outlook to 2023 –By Banks and Non Bank Entities including Captives and Credit Unions and Finance Companies (Auto Loan Portfolio), By New and Used Vehicles, By Type of Vehicle Financed (Passenger Cars and Light Trucks), By Loan Time Period and By Risk Category

Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

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